How credit works- why cant UK PLC do this??

[pzz76077]

It is the month of October and it is raining.

The little French town is 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 town's only hotel, lays a 100 Euro note on the desk, and asks the manager if he can go upstairs to inspect the rooms before deciding which one to stay in for the night.

The manager takes the 100 Euro note and quickly runs to pay his debt
to the butcher. The butcher takes the 100 Euro note and runs to pay
his debt to the pig farmer. The pig farmer takes the 100 Euro note
and runs to pay his debt to the feed merchant. The feed merchant 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 prostitute runs to the hotel and gives the manager the 100 Euro note to pay for the rooms she rented when she brought her clients there. The manager then lays the 100 Euro note back on the desk.

At that moment, the rich tourist comes downstairs after inspecting the rooms and takes back his 100 Euro note, 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. Isn't life wonderful!

PZZ

[BrilloPad]

[pzz76077]

As an bonus thought...

... I had a mail from my militant cousin in Greece the other day that basically said...

If all the money that has been used to bail out the banks was given to real people, then every living person in the world would have between 1 & 3 million dollars each. No one would need to starve anymore. There would be no need for governments and no need to pay tax.


Anyone spot a defect in this theory??


PZZ

[BrilloPad]

... I had a mail from my militant cousin in Greece the other day that basically said...

If all the money that has been used to bail out the banks was given to real people, then every living person in the world would have between 1 & 3 million dollars each. No one would need to starve anymore. There would be no need for governments and no need to pay tax.


Anyone spot a defect in this theory??


PZZ

Think we did this one before.

1. Its not real money

2. 6 billion * 1 million = 6000 trillion whichg is alot more than the bailout.

[minestrone]

... I had a mail from my militant cousin in Greece the other day that basically said...

If all the money that has been used to bail out the banks was given to real people, then every living person in the world would have between 1 & 3 million dollars each. No one would need to starve anymore. There would be no need for governments and no need to pay tax.


Anyone spot a defect in this theory??


PZZ

Yes, nobody would be a farmer anymore.

[pzz76077]

17 trillion has been given out by various governments around the world (US Dollars).

PZZ


Would we need farmers any more??

[VectraMan]

Anyone spot a defect in this theory??

Where would they keep all the money? What with there now being no banks.

And of course if everybody had 1 million dollars, nobody would work, nobody would make anything, and money would be worthless as you couldn't do anything with it.

[pzz76077]

For some (hopefully may) 1 million would not be enough and they would want to embrace their entrepreneurial spirit to make more. this is human nature, so the others with a million would hope to live the whole of their life without running out of money while making the entrepreneurs richer.

Oh wait a minute, thats how we got to where we are today!

PZZ

[Troll]

No one earned anything. However, the whole town is now without debt,and looks to the future with a lot of optimism. Isn't life wonderful!PZZ

So nobody paid their taxes?

[BrilloPad]

So nobody paid their taxes?

The Rich Tourist is unlikely to pay anything.