I'll poke my head into the discussion here.
Money flows in a circular manner in the economy. So the stimulus money being spent by China and other countries is not dropping off the face of the planet once it is spent. It is expected that whoever gets the money will spend it and whoever gets the money spent next will also spend it and so on in perpetuity. Some of it will get saved which means each successive round of spending will generate less income for someone else but at the same time investment should pick up to compensate for savings leakage.
china takes a dump, page-23
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