Quote:
Originally Posted by gleem
This is Tax dollar money, our money they are giving them.
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Sort of.
It's our tax dollars, but it's a bank - they loan the money out, get the money back, make a profit over it. In the mean time, they are loaning out money that will benefit US tax payers in the long run. Mexico is the second larger exporter of oil to the US (Canada is first), so it makes sense that we would help ensure that Mexico continues to produce oil.
This is win win all around. We loan them the money, the produce us cheap oil, and the bank (and thus the US tax payers) make a profit when they repay us.
Americans tend to think that all of our oil comes to the Middle East and that we pay a lot for our oil, and this couldn't be any further from the truth. We get most of our oil from Canada and Mexico, and pay a lot less the Europe does at the pump.