Thursday, April 08, 2010

Quantitative Easing Explained - How the Economy Works..... An interesting bit if email spam

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 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 farmer.



The pig farmer 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 prostitute that in these hard times

gave her service 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 a lot of optimism.



And that, ladies and Gentlemen, is how the United States , United

Kingdom & Australian Governments are doing business

3 comments:

An Irish Friend of Bill said...

ah i love cynical commentary :)

Syd said...

I do have optimism!

chitowngreg said...

Don't knock it. Just substitute experience, strength and hope for the money and we're on our way!