It is a slow day in the small Saskatchewan town of Pumphandle and streets are deserted.
Times are tough, everybody is in debt, and everybody is living on credit.
A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night.
As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.
The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.
The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op.
The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her services" on credit.
The hooker rushes to the hotel and pays off her room bill with the hotel owner.
The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything.
At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves.
No one produced anything.
No one earned anything...
However, the whole town is now out of debt and now looks to the future with a lot more optimism.
And that, ladies and gentlemen, is how a "stimulus package" works.
lol yup. just like the pyramid scam. that's why it's illegal. so you won't notice it's the exact thing the government does.
ReplyDeleteWaaaait just a darned minute here... You mean to tell me that none of those folks paid taxes on those transactions? And now the government is broke?
ReplyDeleteThe only one that produced was the hooker...lol
ReplyDeleteWhat's more:
ReplyDeleteIf you deposit the $100 into a bank, the bank will loan our $900 thanks to Fractional Reserve Banking.
The borrowers will pay the bank back for the $900 with interest.
Thus we have money creation by a banking elite - who creates principle loans without bothering to create the interest.