you are dumb as fuck too

why the fuck would they work it out ..

if someone owe you 100 dollars and his friend owes him 100 dollars would you go after his friend to get the money back?

the town was in debt due to SERVICE on CREDIT given .. so therefore they did not have the $100 dollars to begin with since no money was given to anyone in the first place until the tourist came along

fight club

of course you are assuming that your debtor is actually paying you back, if that assumption is not true then the entire money cycle is broken. think of the rich tourist as the bank and its the purpose is to provide credit to keep the economy working.

damn..i feel sorry for your parent for having such stupid kid :haha:
I am not going to try and explain this further to you since you would just be too dumb to understand.
go take this question to a econ prof and see what they think of it

Yes..the problem presented in this example is lack of liquidity, but these people were never truly in debt. Wealth wise, they were no better off nor worse off before or after the tourist came in.
The only thing that might have changed is the people's "optimism", which is indeed very important for any economy.

rofl i don't need to take this to a econ prof to prove how fucking retarded you are

keep up the tough act its getting you no where .. either you prove me wrong or shut the fuck up shit face

To prove you wrong, how are they better off after the tourist came in?
Before the tourist came in, their economy has no cash to start with, everyone has $100 asset and $100 liabilities, $0 net worth
The tourist came in with $100 and everyone paid off their debt with the new liquidity, but the tourist is now gone with the $100. So they town has $0 cash, and everyone has $0 asset, $0 liabilities, and again, $0 net worth.

There is still no cash in the economy, and these people are back to square one. And what happens next from here??
The next time these people try to do business, they go back to offering service on credit, and everyone go back to owing someone $100, and have someone owing them $100.

I really don't understand what is it that you don't understand

Pssst!

Someone is getting trolled....







Or atleast I hope so... No one can be that stupid.... Right....?

The multiplier is banks. New money is created when funds are written into the account of someone who promises to pay it back with interest.

No banks, and the world runs like the example-in an extremely simplified form.

there was nothing in the original article suggest that the tourist was going to make them better off

it was merely showing the fault of the US government in how they are handling the economy

Your first post was:
Originally Posted by Ferra View Post
How the heck are they "in-debt" to being with if they owe someone $100 but at the same time, someone owe them $100?

They start off with $0 wealth/debt, and ended up with $0 wealth/debt

and i showed you how they were in-debt because they were using service on credit
the tourist served as a boost to get the flow of money going

man this is like accounting 101?? A + L = SE .. lols..

waiting for pandalove... show me some love ...

and I showed you how they are not truly "in-debt" because they owe someone $100 and someone owe them $100, making their net worth $0.
That was the point of my post. You don't call a person "in-debt" if he has a $0 or positive net worth.
Just like how you shouldn't consider a person rich if he has $1 million cash, but owe the bank a $2 million loan. Or a person poor when he owes the bank $1 million, but has a house that's worth $5 million.

You are either too stupid to understand the simple idea of net worth, or too ignorant to read other people's points before spilling shit out of your mouth.

how are they not in debt if you owe money
debt means you OWE
they all OWE each other money
when you can't pay then you are automatically in debt

if i have a billion dollars on hand ... but i don't pay my credit card that has 500 dollars on it .. i am still IN DEBT on that credit card

what part of this don't you understand retard you owe you owe .. u can't not be in-debt because someone owes you

and stop saying 0o0o0o they all owe each other then their net worth is 0 ... if you don't have that 100 dollars on hand to pay what you owe then your in debt

oh ya fuck you shit head you are dumb as fuck retard your mom died and ur dad is gay

errrrr, it's A = L + SE

Well, the world isnt that simple and after you factor in bad debt, the bank wins and everyone loses

sig

you are the second coming of HongKongG.

[youtube]XBSY3S0Dpd0[/youtube]

i just realized the panda in pandaloves avatar has a "wtf you looking at" face... i swear it was smiling yesterday...

this is my panda's serious face ...ready to pounce

Lets stay on topic without the personal attacks please.