If the US Treasury sells/auctions bonds because their regular revenue (tax) already isn’t enough to fund the government, where do they get the money to pack back those debts?

Question

The only thing I can think of is that they pay old bonds with income from new bonds? Isn’t that a ponzi scheme?

Google talks about securities, bills, notes, and bonds. But I don’t really understand what those are.

In: 0

Answer 1

The US Government prints money backed by the full faith and credit of the US Federal Government. What they do, besides other comments on this question, is manage the amount of interest they have to pay on the debt, not what they have to pay back on the principle