With the U.S. sinking hopelessly into a black hole of debt, and households facing an avalanche of tax hikes that will at best postpone the nation’s day of bankruptcy, we are all hard-pressed at this point to see a way to a happy ending. Lo, along comes an anonymous e-mail that describes a way to solve everyone’s debt problems painlessly. If you think the plan can work, I would urge you to forward it to your congressmen. But if you see a fatal flaw in the logic, please drop by the Rick’s Picks forum to explain. The forum can be accessed by clicking on the word “Comments” under the headline on today’s commentary. Here’s the magical plan to cure America’s”Accounts Receivable Crisis”:
“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 what he owes the pig farmer.
”The pig farmer takes the 100-euro note and runs to pay his debt to his supplier of feed and fuel.
”The supplier of feed and fuel takes the 100-euro note and runs to pay his debt to the town’s prostitute that, in these hard times, proffered her ’services’ on credit.
”The prostitute take the 100-euro note and runs to the hotel to pay for the rooms 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, takes the 100-euro note off the desk, tucks it back into his wallet, and explains that he did not like any of the rooms. He then leaves town.
”No one earned a penny. However, the whole town is now without debt and looks to the future with great optimism.
”And that, ladies and gentlemen, is how the United States Government is doing business.”
Come to think of it, that is almost exactly the way Uncle Sam is handling the debt problem. Your comments are welcome at the forum.
{ 1 trackback }
{ 67 comments }
Perfect logic assuming no one pays or enforces the collection of taxes on income or services rendered.
Dear Rick,
The hotel owner was not within his rights to take the $100 from the counter without an agreement known as a loan. Without such, he spent something that was not his to spend- he stole it. So, since no interest was paid by the hotel owner, the tourist was not compensated for his blind act of kindness. The flaw is that the cancelling effect depends totally of FREE money. Who loans money for free and why would anyone?
Thank you,
GMG
That shows the velocity of money I guess, but the hotel proprietor never gets paid because the money is returned to the tourist. Meanwhile, anyone wishing to conduct business would once again enter into a transaction based on debt. It seems this would be analagous of the taxpayer paying taxes to the Treasury, the Treasury lending the money to the Fed, the Fed giving the money to the banks(TARP). The banks repayng the Fed, and the Fed asking for more money from the Treasury via the taxpayer.
Rick, this is an excellent example of liquidity in action and by itself is not the causative problem. The problem begins, let’s say, when the pig farmer raises far more pigs than he can sell creating a bill with the feed and fuel supplier of, again let’s say, 500 Euros which he can not pay. The 100 Euro note can go on thru, but the remaining 400 Euro debt will soon enough cause a contraction in that money flow which begin our problems. The tourist who makes his money from investments in food and fuel suppliers doesn’t show up any more because the business had to fold since the pig farmer couldn’t pay his debt.
The contraction cycle begins and likely won’t end until the pig farmer brings his business back in line with demand. The bank can lend out money more easily, but does that discipline the pig farming business? Will or should the government take over the pig farms? What if the banks slow down their lending because they can make more money using TARP, TALF, or whatever handout money in other ways?
In other words, I hold to the old time view that the excesses simply have to wash out before we can get the economy going forward again (getting more rich tourists back to that hotel).
This little story you cited, by the way, can be used to make a second point. If Congress were to enact a vat tax at, let’s say 8%, the prostitute would come back to the hotel and leave only 65.91 Euros on the table. (8% on five successive transactions). Such is the effect of taxes on money flow and why Reagan insisted we could grow our way out of debt by cutting taxes. Certainly, the government needs to maintain liquidity, but I suspect keeping taxes and government spending down are the best help we can expect — though we will likely get just the opposite from politicians.
Well..Rick..it seems the banks did indeed pass the money around from bank to bank allright; but some how or other we were not in the loop and still have full liability for our debt and theirs.
We would be much better off using the Hitler plan. We were taught that it was the German government that caused their inflation, but we are finding out it was really the central banksters.* Hitler shut down the central bank in 1933 and issued honest, debt free script in payment for labor and services rendered. Prior central bank debt was disavowed as illegal. Fractional reserve banking outlawed. Trade was carried out through BARTER. In a few years Germany was the most powerfull nation in Europe. Not a pleasent sight for the banksters. Germany had to be stopped and since the victors write history we never heard a word about how Germany went from basket case to world power in 8 years.
When we finally get to “basket case” maybe we too can find a goverment who will give us honest money, shut down the central bank, disavow our illegal debt, tax cosumption only, outlaw fractional banking, etc. etc. The only problem is the banksters will do to us what they did to Germany and 100 years from now posterity will watch movies about the “unimaginable atrocities”committed by that traitorous, evil, renegade United States.
* http://www.webofdebt.com:80/articles/bankrupt-germany.php
Hey wait a minute…
Each person in the circle had an equivalent debt and asset (IOU) when the transaction is over each person has neither. The sum difference is the same, each balance sheet is unchanged.
Had the feed supplier been married and not needed the services of the prostitute, he would have pocketed the Euro, whereupon the Hotel owner would have been tossed in jail for theft.
The problem with the “Ingenious Plan to Pay All Debts” as described above is that the example shows that victim gets his money back and is none the wiser.
I reality our tax dollar (future debt obligation) is going through FRONT COMPANIES like AIG AND BANK OF AMERICA but is ending up in BLACK HOLES like GOLDMAN SACHS and MERRILL LYNCH.
We will never get it back.
Few of the victims (taxpayers) are wise enough to see this so it will continue.
I think most of the comments above missed the point of the story. Leaving aside the legality and the minutia of who owes what to whom, it illustrates the fact that, by creating “money” out of thin air and introducing it into an economy based on debt, the very real debts get wiped out by very fake “money,” leaving everyone supposedly richer in the process. The reality is that nobody gained anything in the process.
And that is the exact problem with the USDollar and the massive debts in this country: we might get paid more (thanks to inflation) and we “qualify” for more credit … er… debt, we are no better off than before. The USDollar is a massive kiting operation wrapped in a Ponzi scheme supported by massive amounts of bulls**t from the Fed.
Got gold?
The main fallacy of this problem is the rich tourist is the one to whom much of the debt is owed, i.e., that debt can only be extinguished by domestic production.
Mark has it right.
The townsfolk weren’t in debt.
They owed and were owed the same amount.
Now if our government had just given every man, woman, and child in the USA the $30,000 each (which totals what the bankers gave themselves), then the economy would fly, debts would be paid, and taxes would eventually repay the government.
We’ve been suckered into the same old trickle down con in a new disguise.
Baaa Baaa Bleat!
I have to admit, this article here caught me off guard at the end, and had me thinking… “How is the guest decidnding to take their business elsewhere analogical to what the government does?”.
Then it hit me… What matters is that the whole town was in debt in the first place, until the government came along and reversed it! This analogy seems to SUPPORT fiat currencies, painting the picture that it can reverse (presumably) a recession, ie extinguish debt withouth anyone being harmed by such actions as passing paper with ink sprinkled on it. It doesn’t show the creation of default on debt, ie. That is something that fiat currencies simply can not do. Fiat currency can only transfer debt to another party. So the question is… Who assumed the town’s debt, and how much did prices rise to create more debt through the inflation the passing of that note caused?
Had it been a gold coin, on the other hand, the whole thing would have made sense as gold is the ultimate extinguisher of debt. Or better yet… can debt even exist when gold is money, since it is no one’s obligation?
But an even better question… If I make the best point among all the posts here, do I get a prize or something? lol
This is the scenario the gvt envisioned when they handed over the treasury to Wall St. The problem is Wall Street is the hooker, the pig, and the casino and the money never left their pockets. (Except to pay themselves bonuses for the biggest con job in the history of the world.)
If the gvt had given a small fraction of that to the people the velocity of money would have played out as described and the peoples problems would be solved.
Wall Street would have a hole in their pocket because of their greed for leverage.
THis makes no sense…………this is all assuming that the amount of debt the hotel has is what other owe it. The way things actually work in this country right now is that every one has debt but no one is owed anything. When the savings = the debt , then this might work, but then again if the savings = the debt, we wouldnt need this theory to begin with.
One major flaw in this concept, is that this theory assumes all debt is internal debt with no money owed to forign debt and no real products are bought from foriegn nations. Such debt can bot be settled under this theory.
Fiat $ is dead, worthless, just as this example portrays. Soon we will all be forced to accept a new system of payment, a cashless society just as was revealed to us over 1900 years ago by our creator Jesus. This current financial mess will culminate with a cashless economy as described in Revelation chapter 13. A “mark”, not cash or credit will prevail. Under the guise of protecting us against terrorism/drug trade, see patriot act, we, being those humans who utilize electricity, will be forced to accept a “mark” in order to buy, sell or trade. IT IS COMING!!!!!!!!!
The Bible in the book of Revelation, given to us over 1900 years ago, foretold of a time in which the world economy would be governed by a cashless society. Just as this missive of Rick’s Pick shows the uselessness of current cash, Jesus foretold the future many years ago. Jesus, our creator, tells those who have ears to hear and eyes to see that a man will come who will ” causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand or foreheads: And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of man; and his number is Six hundred threescore and six. (666)” See the Bible, Revelation chapter 13 verse 16-18.
Don’t believe it? Go to your refrigerator and grab a gallon of milk, or to your pantry and grab a loaf of bread or a box of rice-a-roni. Look at at the bar code. See those first two lines which match the middle two lines in that bar code which match the last two line in the bar code. Those two skinny equally spaced lines in the front, middle and end of the bar code, the ones that are longer than all the rest represent the number “6″!!!!!!! That’s right!! 666 is incorporated into all product bar codes for retail sale or trade. Soon to be incorporated into your drivers license and then YOU!!!! These bar codes are already in animals!
Research for yourself and see what the Bilderberger meeting held this past year had to say about this issue! They want every human being implanted with a RFD chip, for our safety of course!
I’ve been reading Risk’s Picks for over two years faithfully and this is my first post. With the the help of Rick, Jim Willie, Bob Chapman, Peter Schiff and mainly Jesus Christ I was fortunate enough to withdraw 90% of my stock investments at DOW 13875 and invest totally in gold and silver related assets.
When the “mark” is implemented gold and silver will be mostly in the hands of the Illuminati ie. Goldman Sachs, JP Morgan, federal reserve, Rothschild s , but we the precious few who read Rick’s Pick and are not part of the evil as described in Ephesians 6:12 will be rewarded greatly
If you have trouble believing these truths I have presented above I urge you to contact me for mathematical proof to what I have stated above. Mathematics do not lie an transcend all cultural and racial barriers. 4+4 always equals 8 in every language and culture. I can back my statements above with mathematical truths.
Feel free to contact me personally at my email: steveghp@hughes.net
Jesus is the way, the truth, and the life! He is all you need in the end, gold and silver is Biblical money and will help you, but Jesus is KEY!
A nice little story but it does not describe debt retirement; it describes a clearing system.
In other words…
There is no collective or individual net debt in the town. If the US government is able to manage that other than through print and pay, great!
So far, everyone has missed it. The hotel proprietor is out 100 euros. He recorded income from the prostitute, but then someone (the rich tourist) came downstairs and took it away. He now has a negative balance. Everyone else is even, on paper.
This illustrates that someone, somewhere, ALWAYS gets screwed in such a transaction.
TANSTAAFL!!!
Andy
all you need to do is watch the movie “Rollover and u will know what is going on.
john
“THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE”
This “statement” appears on all the “money” printed in the USA. The story above proves one thing above all else: There is no “real money” anymore, ONLY DEBT.
Real money is Constitutional, better known as Gold and Silver.
David above said it best: “…by creating “money” out of thin air and introducing it into an economy based on debt, the very real debts get wiped out by very fake “money,” leaving everyone supposedly richer in the process. The reality is that nobody gained anything in the process. ”
Got Gold?
The town has become debt-free, but has no (real) money. In order to conduct business from now on, folks will have to go back into debt by extending credit to each other as before!
Hi Rick, I’m keeping this e-mail in my live section since I’d love to see a lot more of the comments.
That said, it’s clear that eventually the “US Ponzi scheme of finance” will collapse. When… who knows!! To be on the safe side, I’ll continue to put my money on physical gold.
gerry
What is the address of this hooker that takes credit?
The transactions could be all legally recorded in Adam Smith’s “Bill” of exchange, and the 100 Eruo note could incidentally (in Smith’s time) be exchanged for gold.
While this is indeed the way the US Gov, and especially the Fed do business,
the present reality clearly belies this fairy-tale view of the world peddled by the
economics profession. At the most elementary level, by the time the $100.- has
completed the circuit it has been trimmed to one-half its original nominal value as each recipient exacts a fee of some sort, and the nominal value of the debt increases
by the millisecond due to the miracle of compounding interest. It is only in the fantasyland of economics and central banking that Cargo Cults can be expected to
extinguish debt.
I enjoyed these comments tremendously and the information about Weimar Germany and how it remarkably extricated itself from the tyranny of the central bankers under Hitler. As a practicing astrologer of 30 years, the u.s. is most certainly going down an economic black hole and will not recover. This fall and early winter will see another horrific dip in the economic structure, which will be followed by an unprecedented economic spiral that will last several years at least. The united states is done-the wealth of the people sacrificed on the alter of the globalist bankers hell bent on world domination and complete enslavement of the peoples and resources of the earth.
Well almost everyone was paid but in the end the hotel manager lost his 100 euro that he was to have made from the hooker oops working girl for renting the room. The hundred euro that was kept by the rich tourist will buy less of a hotel room tomorrow or in the days following. I would think that he (the tourist) should get to know the butcher, farmer, and prostitute since he will eventually need credit also when his 100 euro looses 90% of its value. The hotel owner should be fired for running a negative account balance, lending hotel time to prostitutes without collaterel and not keeping a portion of the rich tourists deposit since there are loss of business issues for the hotel manager for not filling the hotel. Shame on him for wanting to pay his debt.
The problem with this story as an anology for our economic system is that the debt most individuals and businesses are buried in is owed to banks, not to other businesses and individuals. In the real world the hotel owner goes and pays his bank, then the bank LOANS it to someone else, but not just the original 100 — the bank, through fractional reserve practices, loans out 10 times the amount, so total debt in the system just increased, not decreased, and the chain of debt repayment created in the story stops just got longer, not shorter.
The tourist was just ripped off and never got the money back. Is the tourist the American tax payer?
John Biggs (no, not the famous one)
Obvious solution, make China the 51 st. State. 3 billion people to tax, eliminate trillions in debt being held.
Interesting that everyone had only one debt, that throws the solution out the window. Also, human nature is not so as to the fact that each ran to pay his debt to the other person. Also, what would have happened if even one person had saved the money. Remember when the US govt handed out free money last year it was used to draw down debt or was saved.
Summary – there is no easy out. The current problem is way too complicated for a quick shot solution. Consider 1.5 quadrillion dollars in derivitives that need to reconciled. No one has the money for that.
The example fails to adequately describe what the US government is doing. If the “rich tourist” (the chinese), loaned the hotel keeper money, (the US Gov), (by putting it on the counter), he wouldn’t be doing it without requiring interest on the loan. He would also not be very content if what he was paid back was worth less than what he put on the counter (weakening value of the dollar). He might insist on being paid back in gold or services, or perhaps by being given a lien on the hotel itself, and if the process were repeated over and over, he would end up owning the hotel. Perhaps all of the service providers would survive, but their future would be in the hands of the tourist, and as we all know, tourists tend not to hang around too long, especially if things are tough at home as well…
The fallacy here is that the example is an extreme oversimplification as well as being an isolated case of debtors owing debtors. In the real world, the vast majority of debt is owed to central banks, i.e. the central banks are not a point in the debt circle where the money goes back to another creditor … they have NO creditor since they can print any money they want. I.e. there is no circle.
Yes, there would be a few examples like this in the real world. Emphasis on few. Note that in such cases, however, the rich tourist is not needed. Those people, upon figuring out the existence of the debt circle, could all simply agree to cancel said debts.
If the example was alluding to maybe a central bank placing $ on the desk (in the system) such that prior knowledge of the circle was not necessary, then the assumption is that the money will actually be used to pay debt. There is no way to guarantee that beyond the hotel proprietor, i.e. he can be given the $ with the condition that he pay debt with it, but beyond that the use of the $ is up to that individual, i.e. the feed store owner might decide to have another fling w/ the prostitute instead of paying a creditor. And if the idea is that the $ would end up back at the central bank anyway, then the simpler solution would be for the central bank to simply forgive the debts of its debtors, with the requirement that any such payments otherwise made be made to the debtors other creditors, at which point those can pay theirs more, etc etc.
The ultimate simplification would be to print as much as is necessary to pay everyone’s debt, period. The problem with this is, of course, inflation, and thus everyone was paid with depreciated money, and of course nothing *real* was produced.
Basically, everyone in the equation has netted their receivables (100 euros) with their payables (100 euros) – Net worth is the same for each participant before and after. If none of the participants had an outstanding receivable, the receipt of 100 euros without an economic income factor, would have resulted in an additional liability to the participant.
The difference between the “town on shores of the Black Sea” and the good ole USA – is that here everyone owes to one entity – Banksters. Debt payments, unfortunately, trickle up. The great transfer of wealth from the middle class to the super-rich is happening now
this whole system falls apart when the hooker takes the 100 euro and blows it at vegas instead of paying her debt. the hotel owner is now insolvent and loses his hotel to the rich tourist, who is a foreigner from china.
The fallacy is that the rich tourist NEVER PAID for the room. He only put his money up as a temporary reservation. Never sealed the deal and pulled out at the end. Not sure how this relates to how business is being conducted now tho….did find this on another site….
“I thought Arnie already went to Obama for a bailout last week, and he indeed did turn Arnie down for exactly the reason you suggest.
As far as what else Obama is doing, I’m reminded of a time when I was just starting to rollerblade… I got rolling down a gentle slope, and found myself going uncomfortably fast, and saw a speed bump approaching. My braking skills were pretty weak at that time, so my choices were to deliberately crash before hitting the speed bump, hit the bump and crash anyway, or attempt to jump the damn thing and hope I landed it. I took my chance with jumping it, and (to my amazement) landed still upright on the other side.
The analogy should be obvious: things are out of control. If he “levels” with everyone, we crash before we hit the bump. If he just keeps going, we crash a little later. I think he’s going to try jumping, but he can’t jump until the last moment. Whether he’s able to land it on the other side remains to be seen.”
Awful comparrison. A more honest assesment would have read something like the foreigner coming to a town where there is apparently no money, and giving his 100 to the bank, who could then turn around and keep the 100 and force the local govt to levy taxes on the people and their kids and grandkids to raise another 100 that the towns people didnt actually have. Even this is a crude comparrison, but it’s alot more honest then the above.
Very well written. Printing of so much money as the past two administrations have been doing will only lead to the value of the dollar falling and hyperinflation setting in at some point down the road. The pricing of oil in some other currency will finally ring the death bell for the US Dollar. Unfortunately, greed will lead to the destruction of the US. We have seen the beginning of the end of this Ponzi financial system.
God Bless the USA.
That scheme works if each player has assets to cover their liabilities. Should a player have more liabilities than assets, then the scheme breaks down. Expand that to something bigger — to countries – and U.S. liabilities are bigger than the assets, China’s assets bigger than liabilities, can’t square that off.
The problem with the US is that it is a net debtor which must be paid from future production thereby impoverishing future generations at the pleasure of existing ones. The actors in this episode have all rendered past services to pay for past pleasures. None of them were net debtors; they had effectively extinguished their past debts through barter. Fiat money had become irrelevant.
This is not how our govenrment finances work. True, they do print money out of thin air with no backing of gold (there is none in Fort Knox now) but they give it to the bankersters who then charge us interest to use our money and we have to pay the taxes to the bankersters to pay them back plus the interest. This is the greatest ponzi scheme of all time. There is no way the American people can win. When it is done, the off shore bankersters will own all of America if the American people don’t catch on. Now, if the government gave the fourteen trillion bailout money to the American people, then we would pay all our debts and live happily ever after but that’s not what happened. So our taxes will be going sky high.
I just want freaking gold to go up one of these days…..is that too much to ask for?
This is very similar to the plight of farmers here in Aust during the depression. My grandmother used to tell the story of their local community. The banks could not foreclose on farming properties if the farmer could produce one pound. The five surrounding farms all shared the one pound. The banks could only travel by road as they arrived in a car, and could only complete the route one way. The pound note was kept at the first house and after the bankers visit, the horse was mounted and galloped across the paddocks to the next farmer where the pound was hounded over to the next family and so on. This method kept the five farmers out of foreclosure for three years but my grandmother warned that the responsibility always rested with all five of them not to spend or lose this note. She said that it created life long bonds, trust and co-operation between their neighbors which saw them through many tough times
You know, the method as suggested would work just fine if everyone in that community was in collusion, nobody gave any change, and it was all seamlessly orchestrated so debts could be cleared in a couple of hours. But even if all those elements are not present, quite frankly, in the big picture this is really how it all works anyway. As long as the buck circulates we can have wealth, build equity stakes, utilize services and generally come out ahead. And that’s why credit and velocity work hand in hand. It is a brilliant concept until one chain in the link gets broken.
Off the subject now……That was a brilliant call on gold at 918 Rick. You keep impressing me.
Cam
I agree with Bud. The hotel owner got screwed, and the whore ended up getting her room for free.
I guess the moral of this story is that only whores can make money during hard times.
This parable needs one more element, if it is going to match our current circumstances. When the whore pays the hotel owner, he quickly runs downstairs to his state-of-the-art printing machine and prints up an impeccable copy of the note. He puts THAT one on the counter, and pockets the real swag. The rich tourist (like our own taxpayers, who are willing to be paid in counterfeit notes) is too dumb to know he has been had.
Two morals, then, for our revised version. Only whores and counterfeiters make money during hard times.
Great and highly intelligent comments to an oversimplified storyline!
There is no way around the fact that in our present situation one player benefits disproportionately from the private central bank system, namely the criminal syndicate of private central bank owners, who control their army of well-paid, but crooked secret-handshake-obedience-cult helpers by fear of death: “look what we did to the private-central-bank-haters Lincoln and to several of the disobedient Kennedys (Hitler, who was mentioned by a blogger above as some kind of a central bank hating hero, was in reality the syndicate’s agent and lived out his life in an estancia near San Carlos de Bariloche, Argentina, after a job well done delivering the second k.o. punch to Germany, which brought that country into the syndicate’s full control to this day)”.
The Syndicate is presently benefiting from everyone’s desire to “borrow time” from them and will oblige their hapless host of sheeple as long as they can still find borrowers for the necessary increase of the debt bubble. They can grant more time until everyone is maxed out and until there is no one left who is creditworthy enough to borrow from them. As long as there are still future income streams to be had from tax increases or new taxes (e.g. value-added-taxes), and as long as the rating agencies can still give their (fraudulent) blessing to the worthiness of government debt, this last great bubble of government borrowing can be kept going (with the help of the traitorous double agents in our governments).
God help us when this last bubble pops! The syndicate has also prepared for that eventuality: see Google (U-tube) the US concentration camps and more than 10,000 installed guillotines.
By the way: can you still buy tins of corned beef in the US? We can no longer get it here. The supermarket owner, where I bought it last, told me that his supplier told him that it was banned for reasons of mad cow disease. I doubt that this is the real reason. The real reason is more likely to be that governments and insiders are stocking up at the expense of regular consumers, because they know what’s coming and when. (Corned beef is ideal for safe long-term storage.)
On a more “cheery” note: the Dow broke down convincingly from an uptrend line today. This uptrend line was 64 trading days old (13 weeks) yesterday and has given an amazingly strong support on 10 “touchdown” days. I suppose the Plunge Protection Team of the Syndicate used this trendline to intervene at appropriate points. The clumsy footprints of the PPT were clearly visible on many of those days, when the market was “squeezed” upwards during the last 30 to 90 minutes of trading or in overnight futures trading (cheaper when most traders are sleeping). This pattern is no longer discernible during the last few weeks or so. The banks have been (partly) recapitalized by this sucker rally. Now that they have gotten their money cheaply, their stock prices are free to fall again. Buy FAZ, SKF (triple resp. double short financials) and SRS (double short real estate) and DXD, SDS, QID (double short the stock indices). As a precious metals hedge I prefer AGQ (double long silver) at this time.
I’ve indicated on another occasion that the Syndicate may be betting on a “murderous” depression (avian, not swine, flu, straight from the bio weapons lab in Fort Dettrick, Maryland, delivered by chemtrails and then by vaccines, as a solution for “depressed conditions”). Their ill-gotten US Treasury bonds , notes and bills (purchased with thin air) could quadruple in market value as well as in price-deflation value in such a depression. So could their trillion dollar derivatives positions (short gold, stocks and whatever else). I hope I’m wrong and some friendly aliens or some courageous insiders do something to foil some of these plans.
I used to be much of a Bible believer and remember something about usury money lending with a legally binding little safety valve, namely the 50th year of Jubilee, at which time the loan was forgiven. If we had some variation of that system today, we would not be in the trouble we are in….. There would be no usurer syndicate ruling the world, because it just wouldn’t be profitable enough. Maybe we can hire Sir Alan Greenspan to throw his weight behind such a reformation of usury laws. He could do this “pro bono” as an atonement for his blatant complicity in the latest housing bubble crash……
If any of the creditor/debtors in the story had just 100 Euros before the tourist came, then the circuit could have been completed and everyone would have already been debt-free. I don’t see how this is analagous to the situation in the US where our problem is definitely not a shortage of 100 dollar bills. This “story” must have come from some long out of print Federal Reserve pamphlet that justified Helicopter Bernanke’s raison d’etre.
The “FATAL FLAW” is that the hotel proprietor is OUT 100 euros. He recorded income from the prostitute, but then the rich tourist came downstairs and took it away. He now has a negative balance…end of ingenious plan….and when OUR creditors come downstairs and TAKE THEIR money…our GAME will be OVER!!!
Interesting comments. (most of them) To all who say the the Hotel operator is out the 100 Euro’s, you forget that the Hotel operator paid the butcher.
Comments on this entry are closed.