Its a slow day in a little East Texas town.. The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit.. On this particular day a rich tourist from back east is driving through town.
He stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.
As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.
The butcher takes the $100 and runs down the s treet to retire his debt to the pig farmer..
The pig farmer takes the $100 and heads off to pay his bill at the supplier of feed and fuel.
The guy at the Farmer’s Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her “services” on credit.
The hooker rushes to the hotel and pays off her room bill with the hotel owner.
The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything.
At that moment the traveler comes down the stairs, picks up the $100 bill, states that the
rooms are not satisfactory, pockets the money, and leaves town.
No one produced anything. No one earned anything.
However, the whole town is now out of debt and now looks to the future with a lot more optimism.
And that, ladies and gentlemen, is how the United States Government is conducting business today.
“However, the whole town is now out of debt and now looks to the future with a lot more optimism.”
In other words: It worked.
In what sense do you mean “worked”?
Nothing was created, nothing was earned, NOTHING happened at all. The same cycle will now continue over and over with no real growth, no real value.
The idea that just print more money/extend more credit is the answer is obviously crazy.
It lessens the value further and further into nothingness.
It enslaves us even further; our labor to pay off such debt IS real.
Exactly Bam. The fact that they all went out of debt is an example of how our entire economical system is based on faith and belief. Those are usually terms used when referring to a religion. In economics they teach that no matter how bad it gets, NEVER tell the public. Why wouldn’t they want the public to know? It would cause a loss of “faith” and “belief” in the Wall Street Casino. The only time you want the public to panic is when you want to cram political agendas and laws through.
C’mon people. The flaw is obvious. The Hotel owner is out $100 since the hooker paid for the room to the owner of the hotel and then the money left with the “rich tourist”.
Fred,
The Hotel owner? The Hotel owner paid off his debt with nothing – he had no money to pay anyone in the first place. To say that he is out ‘his’ money that the hooker paid him for the room isn’t true; had he not started the repayments with non-existent money, the hooker would have nothing in which to pay him back with.
The ‘flaw’, as you say, most certainly is obvious; but it certainly isn’t what you suggest.
I didn’t even bother to reply…….didn’t see the point