US economy explained in a simple way!

A small comparison about how United States economy is functioning...my point is to make clear regarding the current crisis in USA to a normal person.. read on..

It is the month of August, on the shores of the Black Sea... 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
Euro note on the reception counter, and goes to inspect the rooms
upstairs in order to choose 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 grower. The pig
grower 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 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 a lot of
optimism. And that, ladies and gentlemen, is how the United States is
doing business today.

The point here is to attract the tourist with some good strategy..but unfortunately the hotel proprietor is only ready to do some stupid magic to show that he can actually be out of debt but he is not at all interested in the hotel's future. Chose the right proprietor this time..after all your hotel is still the best on the planet.Good luck!

reply to post by harishindl


I'm not sure how you can come to the conclusion that the hotel owner doesn't care about his hotel. For that matter I don't know your point at all. The truth is that there was no real debt to begin with in your example. Everyone owed $100 but was also owed $100 for a net of zero debt. No one was better or worse off in the end.

I thought the US gov thought it would be funny to let banks do whatever they wanted and give out free outrageous loans to ANYONE expecting them to actually pay it all back along with interest. But that didn't go very well as we can see now today.

High five handing out money that never existed!



I wonder what would happen if everyone decided to take out all their money from the banks. Would the banks be able to let them do so? Or run out of money since they loaned it all out or spent it for themselves (salary, pensions, child sex slaves trafficking etc)?

reply to post by sligtlyskeptical


Good point bro. I mentioned that the proprietor payed off only Butcher's debt
. He cannot run such a large hotel with money debited only from a butcher. he is already in debts but he is showing off that he can solve his debt problems. Butcher is a bank for example in our case..

Now should I mention the respected Proprieter is your President?

Nicely put I think. The fact that our entire system is in essence "make believe" it has always made me sort of quietly chuckle...considering a few things:

Everyone well knows that someday they will die. Any form of systematic control is therefore rendered useless by default.

So why do we insist upon allowing these systems to rule us? Must we indeed indulge our whims through these monetary systems that encourage materialistic greed and corruption? History has proven that these systems have never worked, yet we as humans continue to allow ourselves to be ruled by them, time, and time again.

I for one have never seen a dead person come back and take all of their worldly possessions or monies with them. Nor have the dead people been put in jail for tax evasion, or hounded by bill collectors...because they are dead. So can we not figure out how to rid ourselves of such a useless system?

Just my two coppers...

Originally posted by harishindl
A small comparison about how United States economy is functioning...my point is to make clear regarding the current crisis in USA to a normal person.. read on..

It is the month of August, on the shores of the Black Sea... 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
Euro note on the reception counter, and goes to inspect the rooms
upstairs in order to choose 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 grower. The pig
grower 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 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 a lot of
optimism. And that, ladies and gentlemen, is how the United States is
doing business today.

The point here is to attract the tourist with some good strategy..but unfortunately the hotel proprietor is only ready to do some stupid magic to show that he can actually be out of debt but he is not at all interested in the hotel's future. Chose the right proprietor this time..after all your hotel is still the best on the planet.Good luck!

edit on 18-8-2011 by harishindl because: (no reason given)

The town without debt still has no money and will have no future btw way use euros lol