Got this forward from an uncle of mine. He puts in his little thought at the end of the mail.
It is August. In a small town on the South Coast of France, 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 Russian 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 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 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 owed the hotel for her hourly room use to entertain clients.
At that moment, the rich Russian is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory and takes his E100 back and departs.
There was no profit or income.
But everyone no longer has any debt and the small townspeople look optimistically towards their future.
Can the Global Crisis end the same way ?
Think of the rich Russian as the US Fed who pumps in money into the system and takes it all back after the cycle is complete……yes ?
– Anil Bhatia
2 thoughts on “A possible solution to the global crisis?”
Good idea, but won’t work.
Why? Because there is interest to be paid.
US Fed’s *business* is to print money and pump it into the economy. Then pull it back, tighten supply and make hefty profits by way of interest while all this is happening.
This one was pretty cool! Liked it 🙂
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