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#1
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What global finance crisis?
In a small town on the South Coast of France, the holiday season is in full
swing, but it is raining so there is not too much business happening. Everyone is heavily in debt. Luckily, a rich tourist arrives in the foyer of the small local hotel. He asks for a room and puts a Euro100 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor. The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes E100. The butcher takes the money and races to his supplier to pay his E100 debt. The wholesaler rushes to the farmer to pay E100 for pigs he purchased some time ago. The farmer triumphantly gives the E100 note to a local prostitute who gave him her services on credit. The prostitute goes quickly to the hotel, as she was owing the hotel for her hourly room use to entertain clients. At that moment, the rich tourist is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory and takes his E100 note back and departs. Oh! Happy Day!! The hotel owner has paid off his E100 debt to the butcher, the butcher has paid off his E100 debt to his supplier, the supplier has paid off his E100 debt to the farmer, the farmer has paid off his E100 debt to the prostitute, the prostitute has paid off her E100 debt to the hotel owner. Everyone no longer has any debt and the small townspeople look optimistically towards their future. Could this be the solution to the Global Financial Crisis? Fred |
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#2
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What global finance crisis?
wrote in message ... On Fri, 1 May 2009 04:36:24 -0500, "Fred" wrote: In a small town on the South Coast of France, the holiday season is in full swing, but it is raining so there is not too much business happening. Everyone is heavily in debt. Luckily, a rich tourist arrives in the foyer of the small local hotel. He asks for a room and puts a Euro100 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor. The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes E100. The butcher takes the money and races to his supplier to pay his E100 debt. The wholesaler rushes to the farmer to pay E100 for pigs he purchased some time ago. The farmer triumphantly gives the E100 note to a local prostitute who gave him her services on credit. The prostitute goes quickly to the hotel, as she was owing the hotel for her hourly room use to entertain clients. At that moment, the rich tourist is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory and takes his E100 note back and departs. Oh! Happy Day!! The hotel owner has paid off his E100 debt to the butcher, the butcher has paid off his E100 debt to his supplier, the supplier has paid off his E100 debt to the farmer, the farmer has paid off his E100 debt to the prostitute, the prostitute has paid off her E100 debt to the hotel owner. Everyone no longer has any debt and the small townspeople look optimistically towards their future. Could this be the solution to the Global Financial Crisis? Fred Good theory Fred ! I see the rich man retains his bonus though lol Trouble is the hotel owner is out E100! Fred |
#3
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What global finance crisis?
Trouble is the hotel owner is out E100! Fred No, he isn't......he didn't provide services for the man. The hotel owner got a quick loan...with no interest....LOL He paid his debt...just made no profit. just me, Cathy from KY in CA |
#4
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What global finance crisis?
"Cathy from KY in CA" wrote in message ... Trouble is the hotel owner is out E100! Fred No, he isn't......he didn't provide services for the man. The hotel owner got a quick loan...with no interest....LOL He paid his debt...just made no profit. just me, Cathy from KY in CA Technically if the prostitute put the E100 on the counter to pay the hotel owner and the tourist took the E100 then the hotel owner is out E100. The hotel owner could have given the prostitute a receipt for the E100 that she put on the counter which clears her debt to him but he does not have E100 income from her use of the hotel room that he can put in the bank. I liked the story anyway! Similar to the present banking system - they all borrowed billions from each other and on the cyber books are nearly all broke but nary a physical dollar changed hands. i.e. Banker (A) borrows 100b from banker (B). Banker (B) borrows 100b from banker (A). At the end of the month banker (A) can't collect an interest payment from banker (B) so banker (A) goes to the Feds. and says that he needs some bail out funds in order to keep operating and claims that he has 100b in accounts receivable as collateral. The Feds give banker (A) a few billion to tide them over. At the end of the same month banker (B) hasn't been able to collect an interest payment from banker (A) so banker (B) goes to the Feds. and says that he needs some bail out funds in order to keep operating and claims that he has 100b in accounts receivable as collateral. The Feds give banker (B) a few billion to tide them over. Banker (A) takes the money from the Feds. and makes an interest payment to banker (B) Banker (B) takes the money from the Feds. and makes an interest payment to banker (A) Bankers (A) and (B) each take the interest payments received and pay operating costs (read salaries and bonuses) etc., etc., etc. Like they say, the safest way to rob a bank without going to jail is to own it.LOL Fred |
#5
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What global finance crisis?
Fred wrote:
In a small town on the South Coast of France, the holiday season is in full swing, but it is raining so there is not too much business happening. Everyone is heavily in debt. Luckily, a rich tourist arrives in the foyer of the small local hotel. He asks for a room and puts a Euro100 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor. The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes E100. The butcher takes the money and races to his supplier to pay his E100 debt. The wholesaler rushes to the farmer to pay E100 for pigs he purchased some time ago. The farmer triumphantly gives the E100 note to a local prostitute who gave him her services on credit. The prostitute goes quickly to the hotel, as she was owing the hotel for her hourly room use to entertain clients. At that moment, the rich tourist is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory and takes his E100 note back and departs. Oh! Happy Day!! The hotel owner has paid off his E100 debt to the butcher, the butcher has paid off his E100 debt to his supplier, the supplier has paid off his E100 debt to the farmer, the farmer has paid off his E100 debt to the prostitute, the prostitute has paid off her E100 debt to the hotel owner. Everyone no longer has any debt and the small townspeople look optimistically towards their future. Could this be the solution to the Global Financial Crisis? Fred What happened to the tax(government always gets something,Or nothing in this case they never found out.The story was great. It must of happened that way before government.Then why are we printing more.....;-) Barbara |
#6
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What global finance crisis?
"Barbara" wrote (snip Fred's story) What happened to the tax(government always gets something,Or nothing in this case they never found out. Goods & Services Tax was included in all prices quoted, of course. Dawne |
#7
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What global finance crisis?
Read it more carefully, people. The hotelier took the original E100
banknote to pay off his debts, therefore when the rich tourist came downstairs and demanded his money back, it was no longer there. It had been used. Therefore, the hotelier OWES the tourist his money, and is gong to have to go into debt again in order to pay it back. The people in the middle have all paid their bills, but the hotel owner is still on the hook for the money, and therefore is still in debt. Moreover, he is likely to get in real trouble with the local authorities for stealing from a tourist. Olwyn Mary in New Orleans |
#8
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What global finance crisis?
Olwyn Mary wrote:
Read it more carefully, people. The hotelier took the original E100 banknote to pay off his debts, therefore when the rich tourist came downstairs and demanded his money back, it was no longer there. It had been used. Therefore, the hotelier OWES the tourist his money, and is gong to have to go into debt again in order to pay it back. The people in the middle have all paid their bills, but the hotel owner is still on the hook for the money, and therefore is still in debt. Moreover, he is likely to get in real trouble with the local authorities for stealing from a tourist. Olwyn Mary in New Orleans the prostitute has paid off her E100 debt to the hotel owner. Barbara |
#9
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What global finance crisis?
"Barbara" wrote the prostitute has paid off her E100 debt to the hotel owner. Part of why Fred's story is interesting is that the banknote is not a real thing in the way the the things it is being used to pay for are real. So in its journey, the banknote represents pigs, time in a room, and whatever else people owed money for. The prostitute gave the hotel owner a piece of paper that by agreement is accepted as being equivalent to the value of however many hours she used the room for. So she is out of debt. So is the hotel owner, because he paid his meat supplier. The hotel owner has to give the money back to the tourist, because he has provided no services to the tourist. So he ends up with nothing in that transaction, but gave nothing to the tourist either. Everything is dependent on a convention that accepts currency as having an equivalance to real goods and services. Dawne |
#10
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What global finance crisis?
lucretiaborgia wrote "Barbara" wrote the prostitute has paid off her E100 debt to the hotel owner. Part of why Fred's story is interesting is that the banknote is not a real thing in the way the the things it is being used to pay for are real. So in its journey, the banknote represents pigs, time in a room, and whatever else people owed money for. The prostitute gave the hotel owner a piece of paper that by agreement is accepted as being equivalent to the value of however many hours she used the room for. So she is out of debt. So is the hotel owner, because he paid his meat supplier. The hotel owner has to give the money back to the tourist, because he has provided no services to the tourist. So he ends up with nothing in that transaction, but gave nothing to the tourist either. Everything is dependent on a convention that accepts currency as having an equivalance to real goods and services. Dawne We should go back to paying with shells, safer, you either have them, or you don't lol After sorting out some of my heaps of necklaces rings and stuff yesterday, I have to admit I would have been a prime target for people trading shiny bits for lands. Dawne |
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