Foreign Debt, Foreign Loans Quotes
Romania had a mediocre small arms manufactureing capability but their weapons were not in great demand by governments around the world. However, there were illegal insurgent groups in many countries who would pay hard currency for arms that would b smuggled into various countries. Governments like Romania were not supposed to sell to these groups, but Romania did.
At the time, the George W. Bush Administration policy was to have the United States running a very large trade and budget deficit—the largest in the history of the world. In order to finance the deficit, the U. S. Government had to borrow money and it did so by selling bonds and other financial instruments. Many of these were purchased by Asians, but Paul’s point was that they were “propping up” American spending habits and might not continue to do so.
Although almost a century ago, the same can now be said of many of the poorer nations of the world. Mexico, however, finally addressed many of the problems that Esquivel Obregon articulated, and Mexican development has been much more extensive.
Commenting on the foreign debt problem:
President Wilson had proposed a $3 billion foreign loan bill to shore up the allies. The congressman supported it but warned his colleagues:
In the early history of America we faced a problem similar to that of many third world countries today—repayment of foreign debt competing with pressing domestic needs:
Benito Juarez Government. The United States initially supported the Mexican Republicans (as opposed to the French puppet Emperor Maximilian) with investments and loans (see {605684} ) as well as weapons smuggling. See {44430}.
Commenting on the practice of making loans to repay old loans:
