Quote:
Originally Posted by jlew_90
You can't loan money you don't have. Somebody please explain how it's supposed to help Americans.
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I don't know about this, it is the first time I have heard of it. But I would assume it goes something like this.
Brazil finds oil (or thinks there might be oil)
China needs oil
China is willing to pay big money for the oil
Brazil and China do not have the new oil drilling equipment
USA companies do have this equipment
USA owes China a lot of money
Brazil wants to be able to sell this oil
Brazil does not have the money to build new oil platforms (or there are unused ones)
USA loans Brazil a few billion in order to have them hire Americans and use USA equipment.
Brazil sells China the oil
USA gets paid back, and a third party country benefits from us reducing the trade deficit with China.