Africa, Foreign aid; I'm confused

[Grizzly]

Is our 3/4 billion donation to Africa supposed to be for debt relief? That's what it says on CNN. Either way, someone explain the concept of foreign aid to me.

Call me crazy, but until we're completely debt free, it hardly makes sense to be paying other people's bills. Hell, until we're debt free, I don't see where we have money to give away at all. How can you give away something that really isn't yours to begin with?

So, seriously, explain to me the purpose behind foreign aid.

[CyniQ]

Originally Posted by Grizzly

Is our 3/4 billion donation to Africa supposed to be for debt relief? That's what it says on CNN. Either way, someone explain the concept of foreign aid to me.

Call me crazy, but until we're completely debt free, it hardly makes sense to be paying other people's bills. Hell, until we're debt free, I don't see where we have money to give away at all. How can you give away something that really isn't yours to begin with?

So, seriously, explain to me the purpose behind foreign aid.

I don't think a billion dollars in cash was literally FedEx'd over. It was debt relief in the sense of, "You owe us a billion dollars. Are you going to pay it?" and the response is, "No." so then we say, "Okay. We'll just throw that in the 'foreign aid' fund and call it good. Let us know when you need some more cash. Cause, you know, we have an unlimited supply of money in America. Taxpayers baby, taxpayers."

[Grizzly]

Hold the phone there, jerky! Ok, so the article mentions that we're dropping roughly 2.5 billion dollars on foreign aid this year. The debt is ~3 trillion, right? So, according to my math, that's 8.3% of the debt that we're just giving away. In 12 years we could be completely debt free if we didn't piss away 2.5 billion a year, no?

Also, if I understand this correctly, the USD is devalued because of how large our debt is. Correct? So, if we paid off the debt, in the future, then we could just give Africa 20 bucks and it would be like dropping a couple billion in their lap. Right?

[Bob Smith]

Grizz, your math is wrong. 2.5 billion is less than .001% of 3 trillion. Its actuallly 8.3 x 10^-4, or .00083%

Also, the issue of debt, currency levels and foreign exhange is incredibly complicated and not as simple as "we have a ton of debt so our currency is devalued."

[Grizzly]

Yeah, I knew that seemed a bit off. Either way, I've got a devalued dollar that says, given the power, I could have the debt paid off in two terms in office.

[Bob Smith]

Slash and burn, slash and burn!! lol Welfare? Screw you! Social Security? Youre outta here too! Foreign aid? Youve got enough AIDS as it is!

There is actually problems associated with becoming a debt-free nation. Not that I think the US will ever remotely get close to that, but its not all rosey if all public debt is retired.

[Beefy]

Originally Posted by Bob Smith

Slash and burn, slash and burn!! lol Welfare? Screw you! Social Security? Youre outta here too! Foreign aid? Youve got enough AIDS as it is!

HAHAHAHAHAHAHA!!! I love being a white American man!

[Grizzly]

What kind of problems, Bob? Speaking just for myself, life would be fantabulous if I had zero debt. Obviously, zero debt would be nicer if I owned my living space, too, but that's asking a bit much from a realistic standpoint. Either way, if bike, lawyer and school were all paid, I'd be living pretty. Can't see how it would differ much for a nation.

[Bob Smith]

Individuals being debt-free is awesome! Im working that way myself, still have a ways to go with the student loans.

The difference with a nation is who holds the debt. The majority of federal debt, though Treasury Notes and Bonds, is held by pension funds, some mutual funds and old people. Old people, in particular, rely on those interest payments for retirement income. If there were no govt debt, the bond market would be a skeleton of what it currently is. There would be no long-term loan rates. In actuality, the govt is moving in the opposite direction. A few years back the govt stopped selling 30 year Treasury Bonds for various reasons. They brought those back last year to solve some of the problems they had created.

Gov't/national finance is very complicated and not as cut and dry as personal finance. Completely eliminating the national debt would cause incredible problems within all financial markets, here and abroad.

[MANWHORE]

Originally Posted by Bob Smith

Individuals being debt-free is awesome! Im working that way myself, still have a ways to go with the student loans.

The difference with a nation is who holds the debt. The majority of federal debt, though Treasury Notes and Bonds, is held by pension funds, some mutual funds and old people. Old people, in particular, rely on those interest payments for retirement income. If there were no govt debt, the bond market would be a skeleton of what it currently is. There would be no long-term loan rates. In actuality, the govt is moving in the opposite direction. A few years back the govt stopped selling 30 year Treasury Bonds for various reasons. They brought those back last year to solve some of the problems they had created.

Gov't/national finance is very complicated and not as cut and dry as personal finance. Completely eliminating the national debt would cause incredible problems within all financial markets, here and abroad.

You really know your shit Bob ... It's nice to hear what's going on in the world every now and then,but most of the time,i could care less. 98% of the time,i don't watch the news,i don't read newspapers,and i could care less how much money the U.S. government steals from its citizens ... I don't really worry much about anything and i like to laugh as much as possible,even if it's at someones misfortune ... nahh just kiddin about that part .. in the famous words of one of the greatest people in history Mr. Jeff Spicoli: "All I need are some tasty waves, a cool buzz, and I'm fine."

[Bob Smith]

Who is Jeff Spicoli?

[MANWHORE]

Originally Posted by Bob Smith

Who is Jeff Spicoli?

Ha Ha .. It's Shawn Penn in Fast Times At Ridgemont High

[CyniQ]

Originally Posted by Bob Smith

Who is Jeff Spicoli?

Holy Shit!! LMAO... Young'uns. I used to have a friend we called Spicoli cuz he talked like that. Great flick, Phoebe Cates boobies...

Funny you bring that up MW. Cuz everytime Mr. Penn tries to act like he knows shit about world politics and foreign policy I just think about the fact that he became famous by pretending to be a stoner.

Very nice points Mr. Smith. I've got points all my own sittin' way up high. Way up firm and high. (anyone get that one??) BTW the phrase is "cut and DRIED"

edit - to be fair... everyone says cut and dry...

[MANWHORE]

That's my BOY

[Grizzly]

Bob Seger "Night moves". I always get your shit. Try something a little less remedial next time.