LaoPo Posted August 7, 2009 Share Posted August 7, 2009 Are Y O U debt free ? A tourist arrives in a hotel in a small village and drops a $ 100 note on the counter to pay for his room. The hotel owner takes the $ 100 and brings it immediately to the butcher who he owes exactly $ 100. The butcher rushes to the farmer who supplies the meat and pays the $ 100 he owes him. The farmer visits a lady of the night and pays her $ 100 for a pleasant evening. The lady of the night goes to the hotel and drops the $ 100 note on the counter paying for her outstanding bill of $ 100. The tourist, walking down the stairs, claims he doesn’t like the room, grabs the $ 100 note and leaves the hotel. …..nobody in the village owns anybody anything anymore. Is this the best solution to overcome the present crisis ? LaoPo Link to comment Share on other sites More sharing options...
toptuan Posted August 7, 2009 Share Posted August 7, 2009 Please translate that into a macro-economics scenario, and I believe you've got something there! Link to comment Share on other sites More sharing options...
Datsun240Z Posted August 7, 2009 Share Posted August 7, 2009 Link to comment Share on other sites More sharing options...
rkidlad Posted August 7, 2009 Share Posted August 7, 2009 Yes. In Thailand this is one of the best ways to sort out the economic problems. The reason why? It's a short term solution to a long term problem. It will come back round and kick you in the arse. But that won't happen for another day at least. Live for today. Link to comment Share on other sites More sharing options...
rixalex Posted August 7, 2009 Share Posted August 7, 2009 Are Y O U debt free ?A tourist arrives in a hotel in a small village and drops a $ 100 note on the counter to pay for his room. The hotel owner takes the $ 100 and brings it immediately to the butcher who he owes exactly $ 100. The butcher rushes to the farmer who supplies the meat and pays the $ 100 he owes him. The farmer visits a lady of the night and pays her $ 100 for a pleasant evening. The lady of the night goes to the hotel and drops the $ 100 note on the counter paying for her outstanding bill of $ 100. The tourist, walking down the stairs, claims he doesn't like the room, grabs the $ 100 note and leaves the hotel. …..nobody in the village owns anybody anything anymore. Is this the best solution to overcome the present crisis ? LaoPo The hotel owner is surely short? Although perhaps the lady of the night can offer another form of payment? Link to comment Share on other sites More sharing options...
Abrak Posted August 7, 2009 Share Posted August 7, 2009 Are Y O U debt free ?A tourist arrives in a hotel in a small village and drops a $ 100 note on the counter to pay for his room. The hotel owner takes the $ 100 and brings it immediately to the butcher who he owes exactly $ 100. The butcher rushes to the farmer who supplies the meat and pays the $ 100 he owes him. The farmer visits a lady of the night and pays her $ 100 for a pleasant evening. The lady of the night goes to the hotel and drops the $ 100 note on the counter paying for her outstanding bill of $ 100. The tourist, walking down the stairs, claims he doesn’t like the room, grabs the $ 100 note and leaves the hotel. …..nobody in the village owns anybody anything anymore. Is this the best solution to overcome the present crisis ? LaoPo Isnt this whole concept called 'fractional reserve banking'. Despite the Ron Paul's of this world it doesnt exist in the US anymore - bank reserves do not equate to a multiple of MS. Where the concept is very important is to compare a US$100 bill you paid with US$100 mortgage backed security. The transactions stop taking place very fast when nobody knows what it is worth. In other words while M might be constant V has diminished. Hence the Fed bought MBS and issued Fed paper (you can buy a hotel room with that) compensating for the collapse in V. So as you rightly say policies which increased V (or stopped it from falling) prevented deflationary MV. Obviously this wouldnt work in the Tourist hadnt paid for the room in the first place. Link to comment Share on other sites More sharing options...
glegolo Posted August 8, 2009 Share Posted August 8, 2009 Are Y O U debt free ?A tourist arrives in a hotel in a small village and drops a $ 100 note on the counter to pay for his room. The hotel owner takes the $ 100 and brings it immediately to the butcher who he owes exactly $ 100. The butcher rushes to the farmer who supplies the meat and pays the $ 100 he owes him. The farmer visits a lady of the night and pays her $ 100 for a pleasant evening. The lady of the night goes to the hotel and drops the $ 100 note on the counter paying for her outstanding bill of $ 100. The tourist, walking down the stairs, claims he doesn't like the room, grabs the $ 100 note and leaves the hotel. …..nobody in the village owns anybody anything anymore. Is this the best solution to overcome the present crisis ? LaoPo ---------------------------------------------------------------------- hahaha, great solution, just what I needed this early saturday morning... I think it is a great scenario, easy to understand for everybody!! Pity though for the hotellowner, he misses out to rent out the room to the tourist. But just for the sake...It is the hotellowner who pay for all this anyhow so everyting is back to ZERO..... remember Lady of the night,, she owned him for the room. Glegolo Link to comment Share on other sites More sharing options...
flying Posted August 8, 2009 Share Posted August 8, 2009 Where the concept is very important is to compare a US$100 bill you paid with US$100 mortgage backed security. The transactions stop taking place very fast when nobody knows what it is worth. In other words while M might be constant V has diminished. Hence the Fed bought MBS and issued Fed paper (you can buy a hotel room with that) compensating for the collapse in V.So as you rightly say policies which increased V (or stopped it from falling) prevented deflationary MV. Obviously this wouldnt work in the Tourist hadnt paid for the room in the first place. Link to comment Share on other sites More sharing options...
jcon Posted August 8, 2009 Share Posted August 8, 2009 Abrak please check your pulse - I'm starting to think you are a robot. Either that or the real-world version of Ben Stein's character in Ferris Beuller's Day Off..... Link to comment Share on other sites More sharing options...
doodee Posted August 8, 2009 Share Posted August 8, 2009 Are Y O U debt free ?A tourist arrives in a hotel in a small village and drops a $ 100 note on the counter to pay for his room. The hotel owner takes the $ 100 and brings it immediately to the butcher who he owes exactly $ 100. The butcher rushes to the farmer who supplies the meat and pays the $ 100 he owes him. The farmer visits a lady of the night and pays her $ 100 for a pleasant evening. The lady of the night goes to the hotel and drops the $ 100 note on the counter paying for her outstanding bill of $ 100. The tourist, walking down the stairs, claims he doesn't like the room, grabs the $ 100 note and leaves the hotel. …..nobody in the village owns anybody anything anymore. Is this the best solution to overcome the present crisis ? LaoPo So then the hotel owner hasnt got the 100 dollars,so he goes back to the butcher and asks to borrow 10 dollars again,and so on.Back to square one Link to comment Share on other sites More sharing options...
grandslam Posted August 8, 2009 Share Posted August 8, 2009 Are Y O U debt free ?A tourist arrives in a hotel in a small village and drops a $ 100 note on the counter to pay for his room. The hotel owner takes the $ 100 and brings it immediately to the butcher who he owes exactly $ 100. The butcher rushes to the farmer who supplies the meat and pays the $ 100 he owes him. The farmer visits a lady of the night and pays her $ 100 for a pleasant evening. The lady of the night goes to the hotel and drops the $ 100 note on the counter paying for her outstanding bill of $ 100. The tourist, walking down the stairs, claims he doesn't like the room, grabs the $ 100 note and leaves the hotel. …..nobody in the village owns anybody anything anymore. Is this the best solution to overcome the present crisis ? LaoPo So then the hotel owner hasnt got the 100 dollars,so he goes back to the butcher and asks to borrow 10 dollars again,and so on.Back to square one But then butcher boy says <deleted> off, whey hey. Jobs a good un Link to comment Share on other sites More sharing options...
hhgz Posted August 9, 2009 Share Posted August 9, 2009 "The tourist, walking down the stairs, claims he doesn’t like the room, grabs the $ 100 note and leaves the hotel." Since the hotel owner had already taken the $100 bill and spent it, the premise is false. Link to comment Share on other sites More sharing options...
churchill Posted August 9, 2009 Share Posted August 9, 2009 The tourist stole the lady of the night's $100 before she had given it to the hotel owner - So the tourist , TIT , will probably be out of pocket if the police catch up with him and recover the money . He will probably also have to pay the police additional money's to avoid jail etc . Link to comment Share on other sites More sharing options...
LaoPo Posted August 9, 2009 Author Share Posted August 9, 2009 The tourist stole the lady of the night's $100 before she had given it to the hotel owner - So the tourist , TIT , will probably be out of pocket if the police catch up with him and recover the money .He will probably also have to pay the police additional money's to avoid jail etc . LaoPo Link to comment Share on other sites More sharing options...
Heng Posted August 9, 2009 Share Posted August 9, 2009 Yeah, debt free. It's nice. Cool thread, too. Link to comment Share on other sites More sharing options...
chiang mai Posted August 9, 2009 Share Posted August 9, 2009 Nicely done. Link to comment Share on other sites More sharing options...
dondraper Posted August 9, 2009 Share Posted August 9, 2009 Once word spreads that the hotel room (Ft. Myers Condominium) is sub-par/over priced, the owner cannot rent it for $100. Then he cannot pay the Butcher who cannot pay the farmer who cannot pay the hooker who cannot pay back the hotel owner. Link to comment Share on other sites More sharing options...
hhgz Posted August 10, 2009 Share Posted August 10, 2009 Yeah, Ft. Myer, Florida. Well the heck did you pull that one from? Oh, I see. You read an article about a guy who is the only resident in a Florida condo building, and you think it has some applicability to Thailand. Nice. Link to comment Share on other sites More sharing options...
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