US Pledges to donate $100M to Haiti – China pledges “only” $4.4M

I found this too ridiculous to not comment on:

Article number one:
US Pledges $100M in support for Haiti
http://www.guardian.co.uk/world/2010/jan/14/haiti-barack-obama-aid-china

Article number two:
China to positively respond to UN flash appeal for quake-hit Haiti (Donate $4.4M)
http://news.xinhuanet.com/english/2010-01/16/content_12818703.htm

Of course, everyone knows that the US doesn’t have any money to pledge, but that doesn’t matter.  We are after all running an annual budget deficient of over $1T on top of our $12T+ in outstanding debt; so what’s another $100M.  It is in fact, nothing new for the US to live far, far above its means.  What is interesting however is that China is living perfectly well within its’ means.  Here’s the breakdown:

This is of course all funny money but look at this it this way:

  1. US borrows $100M from “somewhere” (Fed printing arguments aside, it was probably China)
  2. The current 30-Year US Bond is paying 4.375%
  3. China basically pledges the first year’s interest
  4. Hilarity Ensues

Cheers,

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