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Old 15-05-2009, 11:49 AM   #1114
FGII-XR6
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Join Date: Aug 2006
Location: Salamander Bay
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Economics explained

It is mid August. In a small town on the South Coast of France. Holiday
season is in full swing, but it is raining so there is not too much
business happening. 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 butcher 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 goes quickly to the hotel, as she was owing the hotel for
her hourly room use to entertain clients.

At that moment, the rich Russian is coming down to reception and informs
the hotel owner that the proposed 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 townspeople look optimistically towards their future.
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