Foreign aid is a minute part of the US budget as Obama has correctly argued “[it is wrong to] suggest that we can somehow close our entire deficit by eliminating things like foreign aid, even though foreign aid makes up about 1% of our entire budget.” [1] So very little of the money the US is borrowing is being spent on foreign aid.  It is also wrong to assert that the US government debt is borrowing money from China as most government borrowing comes from the US private sector. [2] China owns a mere 9.3% of US government debt with the majority being owed either to US individuals and institutions (41.7%) or to the Social Security Trust Fund (17.1%). [3]  [1] Geiger, Jacob, ‘Barak Obama says foreign aid makes up 1 percent of U.S. budget’, Tampa Bay Times, 13 April 2011.  [2] Krugman, Paul, ‘Fear-of-China Syndrome’, The New York Times, 30 August 2012.  [3] ‘Who Owns U.S. Debt’, RealClearPolicy, 2 April 2012.