Need $100
 

From another site...

or the hotel proprietor could of just kept the money at the end

isn't there interest too....so wen the rich guy lays down his 100 euro on the table .. in reality that starts building up interest

how the...??

Well it makes total sense...interesting read though.

that so stupid. None of them had any debt to begin with. If these 5 idiots had sat down and had a little chat, they would have saved a lot of time running around like retards.

:duh:

Actually thats how the world runs in a nutshell. Of course you actually have interest, bankruptcies and so on to complicate the matter but straight and narrow. The world runs on credit.

wtf ?

It's a farmer that grows pigs. Everything comes from a seed.

hotel is short 100

ding ding ding

Yeah... except in this case, it's just a scaled down smaller localized version of it, which makes it "simple".

In the end, the world's balance HAS to be zero...

the only reason this works is because money is purely a placeholder.

it has no physical debt etc.

interest = debt. :) That's why we keep printing money.

The hell, no it isn't

the hotel proprietor gave away the 100 euros that he received in exchange for (supposedly) a room, and in the end he got it back cause the tourist didn't want a room

so he didnt rent out any rooms and he didn't receive anything

how's he short 100?

that's how the whole economy works except not 100% on note

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

are u stupid ? or can't read?

A owes B money
B owes C money
C owes D money
D owes A money
A took 100 dollars from the table then gives to B
B receiving the payment so he can now pay C
C then gets the 100 dollar and pays D
D owes A money so then D gives the 100 dollar to A
then A puts the money back on the table

can't believe people don't understand a simple example like this ....

are YOU stupid or can't read ? Why are you trying to point out the obvious?? Do you understand or even read what I post??:rolleyes:
Let me try to make this a bit easier to understand for you...
A owes B $100 and D owes A $100. This makes A's net worth = $0. None of the people in the example is really in debt. (are you really in debt if you owe someone $100 but the bank owe you $100? )
The tourist didn't magically make the debt problem disappear as the example try to suggest. And like someone has pointed out already, the tourist is irrelevant to being with. These people could've just gotten together and solve everything out.

There is a huge "multiplier" effect in our economy, but money just doesn't come up of nowhere.

exactly....

the correct story of how the United States Government is doing business these days.is more like this.... the us government owes 5 000 000 people 1 million each. US government prints 5 trillion dollars without adding any more gold to their stock pile.

6 months later the american people release the money they were given is worth nothing because it's not backed by any commodities. US dollar goes to 2000US dollars for 1 euro. civil war breaks out and the US nukes itself. America, lower Canada, and upper Mexico are gone and the land can't be used for 1000 more years.


in the first example... nobody is really in debt. and a 5 min gathering fixed everything. in the US. everyone is in debt for real... and nothing will fix it.

i can't believe you showed your face in this post again and show how fucking stupid you are
if the tourist did not come in to the hotel to put down the $100 then there will be no flow of money for any of them to pay back

their debt won't be zero because they did not take 100 dollars from each other ... mention in the little story .. "service" on credit was given out therefore there was $100 debt

again like i said before this wont work in the real world because there will be interest in that equation

again learn to fucking read before posting idiotic shit asswipe

makes 100% sense to me...

waiting for the other economists / wannabe-i know i'm right -economists to chime in .... la la la la

your the dumbass... none of them were in debt, and if the tourist and his money never showed up, they could have worked it out without any money transfer.