Short story everyone should read

[Cro7]

A rich man went to poor town full of rekt people living on debt, found a small hotel. He put a $100 on the counter and went up to chose his room.

The hotel owner took the $100 and run immediately to the butcher to pay his debt. The butcher took it and run immediately to the cattle dealer to pay his debt.

The cattle dealer run immediately to the feed merchant to pay his debt.

The feed merchant took the $100 and ran immediately to the freight driver who transports the good for him and paid his debt to him.

The driver took the $100 bill and run immediately to the hotel where he stays to pay his debt. The hotel owner got back the same $100.

Few minutes later, the rich man decided to take back his money and leave, the didn't like the place.

He left that poor town, but with one difference, the entire town paid their debts.

This is exactly how the US is managing the worlds debt/economy.

 

[Dopious]

So everybody was happy, what a nice life.

 

[JessiPinkme]

Your post mesmerized me for a while. I thought you gonna ask how many people ran

But yes its correct. China is giving loans on their debt to poor countries so they can interests on the debt they got from china

 

[khloros]

This is perfect example to understand the volume also. Town had $800 volume with only $100 exchanged between 8 people.

 

[TomTheCat]

Read it a few years ago somewhere else (there was a woman there too ). Great example!

 

[GenesisOne]

This is exactly how the US is managing the worlds debt/economy.

Not true - in the end, they keep the $100 on their own

 

[jacksi]

Government takes 30% or so every time the money changes hands.

So that $100, by the time it gets back to the hotel owner, is more like $20.

Taxation is theft

 

[Dopious]

Government takes 30% or so every time the money changes hands.

No, they don´t. It´s no tax on business expenses.

 

[seoways]

Haha.. Master of Economics.