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As I see it: it's American money and the US government can spend it where they want; if they want to spend the cash to buy things from their friends instead of those that insulted her, who can blame them. There's no law (be it national or international) that states the US government *has* to buy stuff from anyone, now is there?
I find it a bit hypocritical of some countries that they first oppose the liberation of Iraq and label the US as evil, and then demand the right to rebuild Iraq *using US money*. If it were *their* money, it'd be another thing altogether, of course.
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