| 1. Government Bonds | | | | Bailouts have meant that most countries are |
| Governments issue bonds in return for cash on | | | | buying into private companies, rather then selling |
| the promise of a return based on an annual fixed | | | | them off. However, these companies are State |
| interest rate. Bonds are guaranteed by the | | | | assets, which in the long term, could be sold to |
| Government, and sold on the open market to | | | | finance any future stimulus packages. |
| Governments, Trade partners and private | | | | 6. Trading Nationally owned Resources |
| individuals. In the case of the USA, China alone | | | | Russia recently made a trade agreement with |
| has purchased One Trillion Dollars of Bonds. | | | | China to supply Oil, in return for 30 Billion dollars in |
| 2. An IMF Loan | | | | loans. Trading national assets like Oil, Gas, or |
| The IMF traditionally issues loans to Countries in | | | | valuable Minerals in return for cash, is one direct |
| economic trouble. Soft Loans are often granted | | | | way of raising stimulus capital. |
| on strict guidelines, whilst these loans are | | | | 7. Raising Indirect Taxes |
| guaranteed by a mixture of Governments, | | | | Indirect taxes on luxury items will not hurt the |
| including the USA. That finance these loans, based | | | | majority of people, when economies are in |
| on a fixed interest rate, and payment schedule. | | | | trouble. No government has chosen this option |
| Iceland already received 2 Billion Dollars in the | | | | yet, although it may be the next method of |
| form of an emergency IMF loan. | | | | obtaining capital, if new stimulus money is needed. |
| 3. State Pension Funds | | | | 8. Aid for Trade |
| Some Governments have used the savings in | | | | Aid in terms of cash in return for promises of |
| state pension funds, and released the capital to | | | | Trade, is one sure way some Governments can |
| finance part of any stimulus plan. This should be | | | | raise stimulus capital. The downside of this is that |
| returned once the economy has recovered, | | | | by promising Trade, it could shut out competitors |
| 4. Raising Income Taxes | | | | to the countries market. |
| No known Government has financed any stimulus | | | | Spending the Trillions of Dollars on Stimulus |
| package by raising income taxes, as lower direct | | | | packages, solely depends on how far |
| taxes are part of most stimulus packages. | | | | governments will go to raise the capital. Many |
| However, if any new stimulus packages are | | | | methods are traditional, others innovative, but if |
| needed, this could be one way to obtain the | | | | more stimulus packages are needed, then |
| capital. | | | | Governments may have to be more innovative in |
| 5. Selling State Assets | | | | the way they raise funds. |