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How can / does America financially support other countries?


I was just curious as to how this all happens? A teacher of mine mentioned that we can make private investments or loans to countries like Mexico to help their economy. How does this happen?

I'll accept the link to a website if it's an intricate process that needs reading up on.

In the scheme of things, U.S. foreign aid programs are a lot smaller than many people think.

Here's a website that has a lot of data (more data than description I guess) about foreign aid and commerce.

http://www.census.gov/compendia/statab/c...

Looking at the "foreign aid" section, depending on which section you look at you'll find about $20-$30 billion per year in U.S. government foreign aid.

Look at the "international transactions" section and you'll see that imports and exports are each >$2 trillion ($2,000 billion) and the difference between the two is about $800 billion, which is about the net amount that the rest of the world invested in the U.S. last year.

Private sector flows, having nothing to do with policy, dwarf the government-related flows. And most of the money is coming into the U.S., not the other way around.

DEBT. Just like every other American, we rely on debt way too much. We are 6 trillion dollars in debt, yet we still loan money out. We loan 500 billion dollars to Mexico of money we dont have. In return, Mexico will fight with us in a major war.

Private Investment is the best option

We don't lend Mexico money - we buy illegals from them.

Actually, we send food, equipment and experts to many nations - then forgive the debt. If we didn't do this there would REALLY be an upheaval against the US.

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