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Writer's pictureThe Elephant

MUSING: The Great Money Carousel ~ Borrowing from China to Give Back to China

Updated: Jun 25

U.S. policymakers have long been known for their innovative approaches to global economics, but their latest strategy may just be the pinnacle of absurdity: borrowing money from China to give aid to China. This idiotic economic acrobatics has many scratching their heads and wondering if the Treasury has been taken over by a circus act.


Imagine, if you will, a family that borrows money from their wealthy neighbor to buy the same neighbor a housewarming gift. Now imagine this family not only buys the gift but also agrees to pay interest on the borrowed money, essentially making the gift an ongoing monthly subscription service. That’s the level of genius currently being displayed by the U.S. government.


It's a financial scheme where the left hand doesn’t just know what the right hand is doing. We send billions in foreign aid to China, a country with a GDP growing faster than the rabbit population in Australia, while simultaneously racking up interest-laden debt from them. It's like paying someone to let you mow their lawn while they sit on your porch sipping lemonade made from the lemons they sold you on credit.


Some economists have tried to rationalize this policy by claiming it fosters international goodwill and cooperation. However, one might argue that borrowing money at interest rates higher than a payday loan to fund this “goodwill” is akin to lighting dollar bills on fire to warm your house. It’s a display of fiscal lunacy that could only be rivaled by a raccoon trying to wash cotton candy.


Politicians have defended this strategy by insisting it’s a complex form of reverse psychology: if we owe China enough money, they’ll never dare attack us because who would destroy their most lucrative customer? It’s a bit like believing that if you borrow your neighbor’s lawnmower often enough, they’ll never let your grass grow too long out of sheer self-interest.


Adding to the absurdity is the fact that, as we pay China back with interest, we are essentially financing their ability to invest in their own economic and military prowess. We’re like a boxer who not only trains his opponent but also pays for his opponent’s protein shakes and gym membership. The irony is thicker than a textbook on quantum mechanics.


So next time you hear about foreign aid and national debt, remember: it’s not just about the numbers, it’s about keeping the world's most elaborate financial comedy routine alive. Because, in the end, what better way to promote world peace than by ensuring everyone is laughing—at us.


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