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

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

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

"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

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

"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

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

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

"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

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