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jaco asked in Politics & GovernmentPolitics · 1 decade ago

Is there any difference between USA BORROWING from China & some african countries RECEIVING AID from China?

Update:

Vadalia: Do you know USA is the greatest debtor on Earth?? That borrowed money is being wasted in Iraq & Afghanistan along with a lot of soldiers??

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  • 1 decade ago
    Favorite Answer

    Big difference.

    Receiving AID means they don't have to pay it back. And it doesn't really affect the bond/treaury market.

    US Borrowing from China is a big deal. We are indebted to them to the tune of billions of dollars. They can squeeze us if they feel the need to do so - e.g. don't buy them or dump them on the market. Of course, its a dual edged sword. If treasury values go down the toilet, the lose bunches of money. Of course if that happens, the dollar will lose tons of value too.

  • 1 decade ago

    Because the U.S. has to pay that back and means that banks in China own us.

    Additional comments: though it may have changed in the couple of years since I've looked at the statistics, foreign interests accounted for about 19% of our GDP. You may be comfortable with that but I'm not.

  • 1 decade ago

    China doesn't give "aid" to anybody. They looked like cheapskates during the aftermath of the tsunami in Indonesia. They were finally embarrassed into giving. I guess there's a first time for everything.

  • 1 decade ago

    People who don't know anything about Macro-Economics should not use economics to re-enforce an argument. Our trade deficit with China is because we have an open free market economy. China invests into the US market. Our government does not "Loan" money to China.

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  • 1 decade ago

    Yes. Our borrowing is us taking a loan....basically. African countries recieving aid, is China helping them, and they don't have to pay China back.

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