Sunday, May 31, 2009

The Big Bluff

Chanced across this little story that pretty much describes our economy and how it works.. which is basically just One Big Bluff..

In a small town the holiday season is in full swing, but it is raining so there is not too much business taking place.

Everyone is heavily in debt.

Luckily, a rich tourist arrives at a small local hotel. He asks for a room and puts a $100 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 in a hurry 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 a local prostitute who gave him her services on credit.
- The prostitute quickly goes back to the hotel, as she was owing the hotel for her hourly room used to entertain clients.

At that moment, the rich tourist comes down to reception and informs the hotel owner that the room is unsatisfactory and then takes his $100 back and departs.

There was no profit or income. But everyone no longer has any debt and the small town’s people look optimistically towards their future.

See? It’s all just One Big Bluff.. that’s the way our economy works, rolling around in debt, and that’s the reason why countries around the world are encouraging their citizens to spend spend and spend.. cos if they don’t, the whole thing will just crash.

Take a look around, and u can almost see that all these will eventually build up to a climatic end which is so inevitable.. it’s just waiting to happen.

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