U.S. Borrows from China While Aiding Country, Too?
China is one of the biggest economies in the world and grew at more than 9 percent over the last year. It also has loaned more than $1 trillion to the U.S. to fund its deficit-spending.
But at the same time, the U.S. sends foreign aid to China, which lawmakers of all stripes say is just plain nuts.
“Why in the world would we be borrowing money and then turn around and giving it back to the countries that we’re borrowing it from?” Republican Sen. Tom Coburn of Oklahoma said. “If they have enough of a surplus to loan us money, they have enough of a surplus to take care of their own needs.”
Democratic Sen. Jim Webb of Virginia asked the same question in a recent appearance on Fox News: “Hey, in the crisis that we’re in right now, should we really be continuing to send American taxpayer dollars over to China for these purposes?”
It isn’t a lot of aid — tens of millions in bilateral aid, much more through international institutions to which the U.S. contributes.