U.S. Offers Foreign Aid to Countries Holding Billions in Treasury Securities
Published June 03, 2011
| FoxNews.com
The United States is providing hundreds of millions of dollars of foreign aid to countries that it borrows billions from, according to a report by Congress's research arm.
The Congressional Research Service released a report last month, a copy of which Fox News exclusively obtained, showing that in fiscal year 2010, the latest year that data was available, the U.S. handed out a total of $1.4 billion to 16 foreign countries that held at least $10 billion in Treasury securities, including China ($27.2 million), Brazil ($25 million), Russia ($71.5 million), India ($126.6 million), Mexico ($316.7 million) and Egypt ($255.7 million).
China is the largest holder of U.S. Treasury bonds with $1.1 trillion as of March, according to the Treasury Department. Brazil held $193.5 billion, Russia had $127.8 billion, India owned $39.8 billion, Mexico held $28.1 billion and Egypt had $15.3 billion.
So, we borrow money from other countries, to give it to OTHER countries that used to be our allies.
Isn't this just like a ponzi scheme.
No, it's actually worse than that. We borrow it from a country to give it back to them free, as grants. We might as well not even exchange it into their currency. Just make out a check to cash and we'd be doing better.
What makes it worse is we pay the countries interest on the money we borrow so we can give them their money back for free so we lose all the way around.
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