Today a short story about the financial system.
A couple arrives at a hotel in a small village and asks how much is a room for the weekend weekend. The receptionist replies, "$100 for 2 days", "Very well", replied the couple "But we would like to check the premises, the pool and the restaurant before booking the room". "No problem", says the receptionist. "But you need to leave a deposit of $100, take the key and then visit our premises at will. If you do not like it we will refund the money".
The couple left the $100 and visited the hotel.
It turns out that:
- The receptionist owed $100 to the grocer so he left running to repay the debt.
- The grocer owed $100 to a shoemaker so he left running to repay the debt.
- The shoemaker owed $100 to the butcher so he left running to repay the debt.
- The butcher owed $100 to the travel agency so he left running to repay the debt.
- The owner of the agency owed $100 to the hotel so he left running to repay the debt.
After some time couple completed the visit and informed that ultimately will not stay at the hotel.
- "No problem. As I said, here's your money" - the receptionist returned the $100.
- Everyone paid... penniless.
- In the end the couple left the village and took the $100 that paid all debts totalling $500.
- $0 paid $500 in debt.
- ... and we could continue indefinitely.