The $100 bill

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It's a slow day in a small Midwestern town. The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich tourist from back east is driving through town.

He stops at a hotel and lays a $100 bill on the desk, saying he wants to inspect the rooms upstairs, in order to pick one in which to spend the night.

As soon as the man walks upstairs, the 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 at the supplier of feed and fuel.

The guy at the Farmer's Co-op takes the $100 and pays his debt to a traveling hardware salesman who happens to be in town.

The salesman rushes to the hotel and pays off his room bill with the hotel owner.

The hotel proprietor then places the $100 back on the counter, so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

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 the United States Government is conducting business today

:D :)
 
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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 the United States Government is conducting business today

:D :)[/QUOTE]
Well, except for that "optimism" part I agree.
By the way, that person with the available $100.....he would have to be Chinese now, wouldn't he?
 
It's a slow day in a small Midwestern town. The sun is beating down, and the streets are deserted. Times are tough, everybody is in debt, and everybody lives on credit. On this particular day a rich tourist from back east is driving through town.

He stops at a hotel and lays a $100 bill on the desk, saying he wants to inspect the rooms upstairs, in order to pick one in which to spend the night.

As soon as the man walks upstairs, the 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 at the supplier of feed and fuel.

The guy at the Farmer's Co-op takes the $100 and pays his debt to a traveling hardware salesman who happens to be in town.

The salesman rushes to the hotel and pays off his room bill with the hotel owner.


The hotel proprietor then places the $100 back on the counter, so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

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 the United States Government is conducting business today

:D :)

The logic flaw is highlighted in red/ At that point, the owner of the hotel SHOULD 'own' the $100. But he gives it back to the traveler. The salesman STILL OWES $100 to the hotel.
 
Wrong! The guest left the bill, he did not pay it as a deposit or for rent. The hotel owner never had ownership. When he took the bill, that he did not own, and paid a debt with it, he constructively STOLE it from the prospective client!

The hotel owner is, in fact, out $100, since the bill he stole from the prospective client, that he knew he could not keep, was accepted by him to pay a $100 debt. If the bill had not gone full-circle he would still have had to give $100 back to the prospect! Even if the prospect had taken a room for the $100 the hotel owner would have, at best, broken even. He would still have been compensated for only one nights rent for two nights lodging, for the prospect and the salesman.
 
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The logic flaw is highlighted in red/ At that point, the owner of the hotel SHOULD 'own' the $100. But he gives it back to the traveler. The salesman STILL OWES $100 to the hotel.

I disagree. The salesman paid his bill. The hotel owner paid his debt with borrowed money. He didn't actually have the money to begin with. Credit cards work the same way with money paid to creditors that is borrowed from the bank. The only difference is the bank charges interest for the time one uses the money. In reality, instead of just giving the guest back his $100 he would have had to give him $115 to repay the loan.

The story just leaves out the interest on the borrowed money which never happens when somebody borrows money unless you have rich relatives.
 
The hotel owner is flush as well. He paid his debt to the butcher. Everyone is fat and happy (now that's like our government).
 
At first I thought there was a flaw as pointed out but the last post is right.

That's just amazing how it worked out.
 
Everybody did business on credit and is now out of debt, They ran around, were busy, and have nothing to show for their efforts! Ivan
 
the inn keeper stole the money that was in the till. everyone else got payed. the inn keeper will pay his debt to society by going to jail every one is now happy all debts are payed
 
They all consumed and or produced something for the money.
The butcher produced the pig which the hotel owner ate, the farmer produced the pig which the butcher sold, the co-op owner sold the gas and feed that the farmer used to produce the pig to sell, etc., etc.
The hotel owner was left holding the $100 debt.
It's not magic, except for how it gets explained and twisted believed, like that by the politicians.
 
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