WHY DOES U.S. GIVES OUR TAX DOLLARS TO WORLDS RICHEST COUNTRIES?
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
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.
Around the world: Barack Obama on the Great Wall of China. Last year China received $27.2m in foreign aid from the U.S.
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.
Concerned: Senator Coburn said the policy was 'dangerous'
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
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.
THE TOP 10 COUNTRIES RECEIVING THE MOST AID
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.'
news arrives as lawmakers in Washington battle over the conditions for
increasing the nation's ability to borrow money before defaulting on its
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