Saturday, June 13, 2009

How to solve the global financial crisis

It is August.

In a small town on the South Coast 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 £100 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 bank note in a hurry and rushes to his meat supplier to whom he owes £100.
The butcher takes the money and races to his supplier to pay his debt.
The wholesaler rushes to the farmer to pay £100 for pigs he purchased some time ago.
The farmer triumphantly gives the £100 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 came back down to reception.
He informs the hotel owner that the proposed room is unsatisfactory.
He takes back his £100 and departs.

There was no profit or income. But everyone no longer has any debt and the townspeople look optimistically towards their future.


Mary Christine said...

hmmm, paying back your debt? What is that?

Scott W said...

That is some crazy economics!

Patrick said...

This sounds like a system that they would come up with in DC. 8-)

Zanejabbers said...

Now I wonder where else has that
L100 note been.

Steve E. said...

Yep! It sure sounds like our Congress. They tax us then, to give the hotel owner the 100 with which to pay back the prospective renter.

Where else do we think he got it??? Hmmmmm?

Syd said...

It all evens out in the end.