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Starfirenv (< 20)

The Solution to the Global Financial Crisis

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August 17, 2009 – Comments (7)

The Solution to the Global Financial Crisis

By Prieur du Plessis - May 11th, 2009, 12:15PM

In a small town on the South Coast of France, the holiday season is in full swing, but it is

raining so there is not too much business taking place.

Everyone is heavily in debt.

Luckily, a rich Russian tourist arrives in the foyer of the small local hotel. He asks for a

room and puts a Euro100 note on the reception counter, takes a key and goes to inspect

the room located up the stairs on the third floor.

• The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom

he owes E100.

• The butcher takes the money and races to his supplier to pay his debt.

• The wholesaler rushes to the farmer to pay E100 for pigs he purchased some time ago.

• The farmer triumphantly gives the E100 note to a local prostitute who gave him her

services on credit.

• The prostitute quickly goes to the hotel, as she was owing the hotel for her hourly room

used to entertain clients.

At that moment, the rich Russian comes down to reception and informs the hotel owner

that the room is unsatisfactory and takes his E100 back and departs.

There was no profit or income. But everyone no longer has any debt and the small town’s

people look optimistically towards their future.

Could this be the solution to the global financial crisis?

 

>

7 Comments – Post Your Own

#1) On August 17, 2009 at 10:23 PM, alstry (36.37) wrote:

It could be if it were structured that way....but everyone seperately owes the banker the money, and the banker carries a knife much larger and sharper than the butcher.

And if you don't pay, he takes everything you have, even if he never had the money to loan you and you bailed him out when he got in trouble.

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#2) On August 17, 2009 at 10:31 PM, Starfirenv (< 20) wrote:

And the taxman would take a piece of each "transaction". A few more stops and it would be  gone. Poof!

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#3) On August 17, 2009 at 11:07 PM, alstry (36.37) wrote:

Star,

You are on the right track about restructuring debt.....

Until we head in that direction, things get a lot worse as the prostitute, farmer, butcher, and hotel owner all go bankrupt to the banker.

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#4) On August 18, 2009 at 9:45 AM, leohaas (31.07) wrote:

Excellent post!

Of course, the problem is finding a prostitute who provides services on credit...

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#5) On August 18, 2009 at 6:32 PM, Eudemonic (61.42) wrote:

Follow the money. Isn't the rich Russian SOL, because the hotelier already spent the E100?

In theory the Russian has on his books an Acct Receivable of E100 which is worth nothing. Which parallels the current crisis as well.

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#6) On August 19, 2009 at 12:33 AM, Starfirenv (< 20) wrote:

He took it.back before he left It's a wash but debt be gone. Macic.

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#7) On August 19, 2009 at 12:35 AM, Starfirenv (< 20) wrote:

macic=magic, sorry.

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