Foreign Aid

[Mos Eisley]

I haven't been on in a while but when I ran across this article today I had to share it with you guys. It figures one of the only politicians that really get how stupid this is, is from Oklahoma. Go figure. Enjoy!

U.S. gives billions of dollars in foreign aid to world's richest countries - then asks to borrow it back
By Daily Mail Reporter

The U.S. is providing hundreds of millions of dollars of foreign aid to some of the world's richest countries - while at the same time borrowing billions back, according to report seen by Congress.

The Congressional Research Service released the report last month which shows that in 2010 the U.S. handed out a total of $1.4bn to 16 foreign countries that held at least $10bn in Treasury securities.

Four countries in the world's top 10 richest received foreign aid last year with China receiving $27.2m, India $126.6m, Brazil $25m, and Russia $71.5m.
Mexico also received $316.7m and Egypt $255.7m.

And yet despite the massive outgoings in foreign aid, the receiving countries hold trillions of dollars in U.S. Treasury bonds.

China is the largest holder with $1.1trillion as of March, according to the Treasury Department.
Brazil held $193.5bn, Russia $127.8bn, India $39.8bn, Mexico $28.1bn and Egypt had $15.3bn.

Foreign aid is earmarked for causes including HIV/AIDs prevention, combating weapons of mass destruction, fighting tuberculosis, and counter-terrorism efforts.
The news has caused grave concern, with Senator Tom Coburn, R-Okla, who requested the report seen by Fox News, calling the policy 'dangerous'.

In a written statement Senator Coburn said: 'Borrowing money from countries who receive our aid is dangerous for both the donor and recipient.

'If countries can afford to buy our debt, perhaps they can afford to fund assistance programs on their own.

THE TOP 10 COUNTRIES RECEIVING THE MOST AID
Colombia $461.2m
Mexico $316.7m
Egypt $255.7m
Philippines $128.2m
India $126.6m
Russia $71.5m
China $27.2m
Brazil $25m
Thailand $16.75m
Turkey $8.2m

'At the same time, when we borrow from countries we are supposedly helping to develop, we put off hard budget choices here at home.
'The status quo creates co-dependency and financial risk at home and abroad.'

The news arrives as lawmakers in Washington battle over the conditions for increasing the nation's ability to borrow money before defaulting on its obligations.
The government reached its $14.3trillion borrowing limit last month and both parties agree that spending cuts are needed, although Republicans refuse to raise taxes that Democrats insist on.
President Obama has met with both sides over the issue, but no progress has been made. The State Department did not comment.

 

[JB Books]

That list is woefully short, how about the $3 BILLION a year we give to Israel?

 

[Biggsly]

We just need to borrow more money so that we can get out of debt.

 

[grizzly97]

That list is woefully short, how about the $3 BILLION a year we give to Israel?

I think the article is talking about countries we give money to and then borrow money from the same countries. Do we borrow money from Isreal? (real question, not being a smarta**)

 

[JB Books]

I think the article is talking about countries we give money to and then borrow money from the same countries. Do we borrow money from Isreal? (real question, not being a smarta**)

No we don't, and I think you are a little mistaken about the list above. I don't think we borrow any money from Mexico or Turkey.

 

[grizzly97]

Right on. I'll just eat my popcorn and watch from the sidelines now.

 

[Mos Eisley]

No, but it does say Mexico holds 28.1 billion in Treasury bonds. I'm no economist but I look at that like if I loaned you some money because you needed it, and then you turned around and wanted to invest some of it in my business or something. More than a few TV shows have covered a similar storyline...Joe Blow loans (or gives) Jane some money, Jane goes out and buys new designer shoes.

 

[Nraman]

That list is woefully short, how about the $3 BILLION a year we give to Israel?

I don't think anybody knows how much we give Israel, too many programs, loans for example can be converted in to grants, joint projects like the Lavi fighter that we put in billions and get nothing, etc.

We just need to borrow more money so that we can get out of debt.

I think we can increase the foreign aid if we cut on social security and Veterans pay. Perhaps we can send N Korea more, they are such nice commies!
There are about 190 countries in this world, we send money to 150. To make sure that one Congressman will not mess with another Congressman's favorite, they never vote on single countries, they vote once on all as a single item.

http://www.youtube.com/watch?v=_ocVj6UWiDI

 

[Nraman]

No we don't, and I think you are a little mistaken about the list above. I don't think we borrow any money from Mexico or Turkey.

You might be wrong on that. We give them so much that they cannot integrate it all at once, they invest it and make more money. I wouldn't be surprised if the lend us some of it.

 

[spamby]

If we are about(we are) to default on our loans then would it not be wise to stop ALL foreign aid period. Why would we give people aid anyway! STOP THE INSANITY!!!!!