[c-cialis]

THE $100 DOLLAR BILL

It is the month of August; a resort town sits next to the shores of a lake. It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.

Suddenly, a rich tourist comes to town.

He enters the only hotel, lays a 100 dollar bill on the reception counter, and goes to inspect the rooms upstairs in order to pick one.

The hotel proprietor takes the 100 dollar bill and runs to pay his debt to the butcher.

The Butcher takes the 100 dollar bill, and runs to pay his debt to the pig raiser.

The pig raiser takes the 100 dollar bill, and runs to pay his debt to the supplier of his feed and fuel.

The supplier of feed and fuel takes the 100 dollar bill and runs to pay his debt to the town’s prostitute that in these hard times, gave her “services” on credit.

The hooker runs to the hotel, and pays off her debt with the 100 dollar bill to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.

The hotel proprietor then lays the 100 dollar bill back on the counter so that the rich tourist will not suspect anything.

At that moment, the rich tourist comes down after inspecting the rooms, and takes his 100 dollar bill, after saying that he did not like any of the rooms, and leaves town.

No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism .

And that, ladies and gentlemen, is how the United States Government is doing business today.

Author Unknown ~

[Pateeffelty]

The only snag would be if one of these business people was an Usurer, that would throw a wrench into the plan.

[Beerinkol]

The only snag would be if one of these business people was an Usurer, that would throw a wrench into the plan.

Author thinks the Fed. is U.S.

[Eromereorybig]

So what if one of those people chose to not pay off debt with that $100? The rich guy comes back and his money is missing. Now what.

[jerzeygymwolf]

So what if one of those people chose to not pay off debt with that $100? The rich guy comes back and his money is missing. Now what.

A "bailout" occurs and the bill for the "bailout" is passed off to the Doctor, Waitress, Auto Mechanic, and Plumber.

[DiatryDal]

Those people did honest work, but were foolish to do it for nothing. It's not as though a butcher does not deserve compensation for his chopping. He's doing the work. It's just unfortunate that the only methods of payment acceptable is a note of credit.

[HonjUopu]

Has nobody noticed? There was no "debt" to begin with... it's the same situation if you owe your neighbor $100 and he owes you $100 - it balances out so neither of you owe anything. Adding more people to the "loop" doesn't change the net equation, and the arrival of the tourist with his $100 is purely incidental and has no net effect on the situation.

The national debt, on rhe otherhand...

[c-cialis]

The national debt, on the other hand...

There are 51 nationalities. The federal nationality is "American". The other 50 nationalities correspond to the 50 (or 48 if you would rather) several States.

There are then 51 national debts. Oh, except I almost forgot, the 50 (or 48 if you would rather) several States only accept gold or silver as tender of payment. So that makes 50 (or 48 if you would rather) SOLVENT nationalities that have no debt at all.

Now isn't that great news? Drop American nationality and join an entity that is solvent rather than bankrupt?

[KacypeJeope]

The other factor that's missing is the guy who made the $100 and his surcharge for doing so.

[SOgLak]

I got a copy of the OT in an email last week. It was from some one who thinks they get it but they don't.

Anyway in the version I got it was all in Euro's and the last line said this instead:

And that, dear ladies and gentlemen, is how a basic financial bailout package works !

[ImapFidaarram]

Has nobody noticed? There was no "debt" to begin with... it's the same situation if you owe your neighbor $100 and he owes you $100 - it balances out so neither of you owe anything. Adding more people to the "loop" doesn't change the net equation, and the arrival of the tourist with his $100 is purely incidental and has no net effect on the situation.

The national debt, on rhe otherhand...

Right. This is the important point. Their are no net debtors at the beginning of the story.

[anolbom]

The supplier of feed and fuel takes the 100 dollar bill and runs to pay his debt to the town’s prostitute that in these hard times, gave her “services” on credit. Amazing!! Credit from a hooker!! I bet she became a banker in her next career . . . just a different way of screwing them . . .

[KacypeJeope]

Right. This is the important point. Their are no net debtors at the beginning of the story.

But isn't the debt created "initially" when the dollar comes into existence?

[Weislenalkata]

But isn't the debt created "initially" when the dollar comes into existence?

The government/fed was the Hotel owner who stole the 100, not the rich guy.

Actually, I have no idea, and I think my brain just looped a circuit.

[MoreEndotte]

Here's the key here: Without interest, debt is repayable. However, in reality, each of those people would owe the person the $100 plus interest.

Here's the second key: The $100 can only be obtained by new debt. Cash is only 3% of all money, so the rich guy couldn't have physically put down more than $3.

So with these two conditions, you've got the endless loop: each month, each person owes the next person more. And the only way the whole thing can stay afloat is if they find a new guy to go into debt to cover servicing the debt. So we have the need for exponentially increasing debt to keep it going, and if that doesn't happen everyone in the town loses their collateral (their stuff) to creditors....which are the banks. But the banks will collapse too because they can't sell their assets. So that means the lender of last resort, the FED, will end up owning everything in the entire town.

[c-cialis]

Could be the point is that the hotel operator would have been $100 to the good if he kept his rooms up to standard.

[QiuCIOdO]

The hooker part of the analogy falls flat.
ie in real life the hotel proprietor would have most likely taken payment from the prostitute via services rendered and she'd have kept the $100 bill. lol

Unless the hotelier was gay...

Or the hooker was a diseased crackwhore.

[sherrferris]

So what if one of those people chose to not pay off debt with that $100? The rich guy comes back and his money is missing. Now what.

You get September/October 2008.

[sherrferris]

Has nobody noticed? There was no "debt" to begin with... it's the same situation if you owe your neighbor $100 and he owes you $100 - it balances out so neither of you owe anything. Adding more people to the "loop" doesn't change the net equation, and the arrival of the tourist with his $100 is purely incidental and has no net effect on the situation.

The national debt, on rhe otherhand...

It is not incidental because all the townspeople are willing slaves to the issuer of the note.

[Beerinkol]

Unless the hotelier was gay...

Or the hooker was a diseased crackwhore.

There should have been a pharmacist in their somewhere.