Saturday, October 30, 2010

A Twist on Foreign Aid

Pick a country in need of a little foreign aid. Here's the plan.

A Canadian lends to the government of that country $10,000, at 10 per cent, for 10 years.

The only requirement is that the $1,000 annual interest be spent in that country. The Canadian government does not charge taxes on the interest earned by the Canadian investor.

The result:
1. The country has the use of the money for a fixed period of time.
2. The purchaser's interest is spent to support local industry.
3. The Canadian government aids a country in need.

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