Foreign Aid to China?

As part of an aside on a news program today, the moderator of a discussion group happened to mention that the United States is still giving foreign aid to China. Really? The discussion panel chuckled. I didn’t. So I did some research, and here’s the skinny.

China still receives $2.6 billion/year in foreign aid from western countries. These sap countries in order of decreasing aid are Japan, Germany, France, Britain, then the United States. Our country gives to China $65 million/year. You heard me. We give China, the second largest economy in the world, $65 million. Can anyone tell me why?

We are in hock up to our necks…with a good portion of the blame resting with massive trade deficits with China. Consider the following: China spends $100 billion/year on its military. It spent billions on its Olympic extravaganza. It spends billions on a space program. It is second only to the United States in the number of billionaires in its country. It holds $2.5 trillion in foreign reserves….most of it in dollars. It is the largest borrower of money at preferential rates from the World Bank. All of this while it is sticking it up our ass in Iran and Africa, propping up some of the most brutal regimes in the world…and don’t even mention North Korea.

In addition, India receives $126 million; Russia $71.5 million; Brazil $21 million; Mexico $316 million, and Egypt $1.5 billion. Israel is in a class by itself at $3 billion.

Let’s leave Egypt and Israel out of the equation where foreign aid is predicated on things other than actual economic need. But look at the rest. None of these are poor countries. Sure, there is poverty within those countries, but that is a result of individual government policies. Russia, Brazil and Mexico are natural resources rich…and nobody seems to know where the money goes. India is not exactly poor either. Sure, there is huge amounts of poverty in India, but they are a linchpin in the BRIC powerhouse (Brazil, Russia, India and China).

So while we are borrowing our way to the poor house, while our infrastructure is collapsing, while entitlements are being whacked….we borrow money from China to give money to China?

If this isn’t an outrage, nothing is. And while the government seems to be looking at the issue, and has cut back this year from last…much of this should be gone all together outside of military aid to countries who are our FRIENDS, and who are strategically important to the United States.

And you wonder why the United States are broke!!!!!

(Thanks to Investors.com editorial Why Does The U.S. Still Give China Aid? for source material)