I'd like to say I've never heard of something so crazy, but this is just par for the course. Here's the summary:
- United States borrows money which increasing national debt
- United States turns around and gives money back to the same foreign countries in the form of aid
- United States is on the hook for principle and interest incurred from step 1
- Foreign countries laugh all the way to the bank because now they get free money from the U.S. as well as payments from step 3
How, exactly, does that make sense?
The United States is providing hundreds of millions of dollars of foreign aid to countries that it borrows billions from, according to a report by Congress's research arm.