Why are we providing US foreign aid to the world's largest oil producer? by Chuck Angier
(libertarian)
Friday, August 15, 2008
Given the recent hostilities between Russia and Georgia, a brief evaluation of our foreign aid is in order. I am able to find foreign aid data only through 2006, another shining example of government efficiency. The amounts of foreign aid are not so outrageous, but taken as a whole, a billion dollars here and a billion dollars there starts adding up. One must wonder if our aid creates more enemies than friends. A table documenting oil production, sales, US imports and US foreign aid can be found at the end of this post.
RUSSIA has become the world's top producer of oil, surpassing even Saudi Arabia in 2006 and 2007. In 2007 the value of Russian production was $238 billion even supplying $2.8 billion to the US. Thanks to a near doubling of the world price we can assume that the value of their production for 2008 could end up somewhere between $400 billion and $500 billion. Can we say "Windfall Profits"? Why have we provided over $8 billion in foreign aid (that we, by the way, created out of thin air) to a very wealthy aggressor that has signed arms, nuclear and energy deals with Iran?
and oh, by the way, about Mexico...Mexico in 2007 our 3rd largest supplier of petroleum, raked in about $35 billion in oil sales to the US. Many estimate that Mexican labor here in the states sends another $40 billion in wages back home. What is it about at least $75 billion in revenue that justifies close to a billion dollars in foreign aid?
And our friend Hugo Chavez of Venezuela produced $61 billion of oil in 2007, selling about half of it to the United States. No one is more deserving of the $29 billion in business or the $129 million in foreign aid than avowed enemy of the US and ally of Iran like Chavez.
And Colombia? Over $1 billion of the $1.258 billion we gave to Colombia in 2006 was for narcotics interdiction and control. Obviously, this investment is really paying off. Wouldn't it cost less to legalize the drug trade to remove the criminal element?
And Iraq? With $53 billion in oil production and $4.4 billion in US aid in 2007, one must wonder if it isn't time for them to step up to the plate.
Of the top 13 suppliers of oil, only one among them, Canada, can be counted as a friend. Considering that our best friends, such as the UK and Australia receive little or no US foreign aid, we must wonder if NO foreign aid would be more beneficial. Throwing good money after bad is not wise, but then again, it seems to be what the government does best.
The views expressed
in this article are those of Chuck Angier only and
do not represent the views of Nolan Chart, LLC or its affiliates.
Chuck Angier is solely responsible for the contents
of this article and is not an employee or otherwise affiliated
with Nolan Chart, LLC in his/her role as a columnist.
Excellent questions. One possible answer; our country is run by lunatics. Another possible answer; there is some skulduggery afoot (i.e our country is run by crooks)
Posted By: Jake, the champion of the constitution
Date: 2008-08-15 18:44:32
Chuck - great article, we are probably ultimately gold-leafing Putin's office or some of the oligarchs. This link is satire but hopefully will get you to grin.
Posted By: Jake, the Champion of the Constitution
Date: 2009-07-22 19:02:46
Again, great article Chuck - I almost threw this in my most recent piece but will save it for later. Looks like they just updated it through 2007 now. If you found any way to get through 2008, pls send an email to me!!
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