House HSC Chair Michael McCaul: Cut foreign aid to China, et al, holding large amounts of US debt
If other nations are making money from financing American national debt, they shouldn’t be receiving foreign aid, too, Rep. Michael McCaul says.
McCaul has introduced the “Prioritizing Debt Reduction in U.S. Foreign Assistance Act” to limit foreign assistance to any country that holds more than $500 billion in U.S. Treasury Securities.
China holds $1.2 trillion in U.S. Treasuries. Between 2001 and 2011, the U.S. gave China $310 million in foreign assistance, mostly for economic development. The federal debt will likely reach $17 trillion this summer.
“It is hard to understand why the United States would borrow money from a county only to return it in the form of foreign assistance. A better use of such dollars would be paying down debt owed to the crediting country in the first place,” said McCaul.
More at http://blog.chron.com/txpotomac/2013/07/rep-michael-mccaul-cut-foreign-aid-to-china-and-other-nations-holding-large-amounts-of-u-s-debt/ .
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