A UK Personal Finance Blog – The result of direct exposure to the fallout of the financial crisis.


A Simple Explanation of The Basic Monetary System


Find in Amusing October 14th, 2009 - 3,793 views

It is the month of August, on the shores of the Black Sea. It is raining, and the little town looks totally deserted. 

These are 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 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to pick one.

The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher.

The butcher takes the 100 Euro note, and runs to pay his debt to the pig breeder.

The pig breeder takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel.

The supplier of feed and fuel takes the 100 Euro note 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 Euro note 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 Euro note 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 Euro note, 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 great optimism!

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

Email This Post Email This Post

3 Responses to “A Simple Explanation of The Basic Monetary System”

  1. Tweets that mention A Simple Explanation of The Basic Monetary System - UKMoneyPot.co.uk -- Topsy.com Says:

    [...] This post was mentioned on Twitter by moneywatch, Aidan McKeever. Aidan McKeever said: RT @moneywatch: A Simple Explanation of The Basic Monetary System http://bit.ly/FCLuC [...]

  2. uberVU - social comments Says:

    Social comments and analytics for this post…

    This post was mentioned on Twitter by moneywatch: A Simple Explanation of The Basic Monetary System http://bit.ly/FCLuC...

  3. Andy Says:

    But the hotel manager doesn’t have the 100 Euros given to him by the hooker…?

Main Menu:

Google Ads:

Categories:

Popular Posts:

Archives:

 Subscribe in a reader

Share |

Share Prices:

Popular Finance Sites:

Useful Sites:

Calculators:

More UK Blogs:

More Useful Sites:


Get Listed.

US Blogs:

Disclaimer:

Any information shared on UKMoneyPot does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser.