jeudi 10 avril 2014

US military aid: taxpayer money, fed money, or both/neither?

As I understand it, the US's military aid to Israel, Pakistan, Saudi etc. works as follows:



The us gives credits to these countries.

These credits don't even leave the US.

The US allies spend the credits on US goods (arms)

The US gets manufacturing jobs

The arms industry gets money

The US gets leverage over the aid recipients



Is the money that the US "gives away" taxpayer money or do they simply "print" that cash and it is all a clever trick to create money without causing inflation?

(and support allies, keep them dependent, keep manufacturing jobs, keep manufacturing costs down with higher production, make money for the Military industrial complex)



Real money or funny money?





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