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Could this be the solution to the global financial crisis?

I have adapted the following from an email which I recently received. You might like to add your comments as to what is going on in the scenario below:

 

It is 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 hurriedly and rushes to his meat supplier to whom he owes €100.

 

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

 

The wholesaler rushes to the farmer to pay €100 for pigs he purchased some time ago.

 

The farmer triumphantly gives the €100 note to his employee to cover his back wages.

 

The employee goes quickly to the hotel to settle his bar bill. He places the €100 note on the counter.

 

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 €100 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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Posted in Money Supply

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