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A Tale of Velocity of Money


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2025 Mar 21, 11:46pm   180 views  10 comments

by AD   ➕follow (1)   💰tip   ignore  

Velocity of money:

It is the month of August; a resort town sits next to the shores of a lake. It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit.

Suddenly, a rich tourist comes to town. He enters the only hotel, lays a 100 dollar bill on the reception counter, and goes to inspect the rooms upstairs in order to pick one.

The hotel proprietor takes the 100 dollar bill and runs to pay his debt to the butcher. The Butcher takes the 100 dollar bill and runs to pay his debt to the pig raiser. The pig raiser takes the 100 dollar bill and runs to pay his debt to the supplier of his feed and fuel. The supplier of feed and fuel takes the 100 dollar bill and runs to pay his debt to the town's prostitute that, in these hard times, gave her “services” on credit. The hooker runs to the hotel, and pays off her debt with the 100 dollar bill to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.

The hotel proprietor then lays the 100 dollar bill back on the counter so that the rich tourist will not suspect anything. At that moment, the rich tourist comes down after inspecting the rooms, and takes his 100 dollar bill, after saying he did not like any of the rooms, and leaves town.

No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism.

Comments 1 - 10 of 10        Search these comments

1   HeadSet   2025 Mar 22, 6:46am  

AD says

the whole town is now without debt,

And also without assets (accounts receivable).
2   AD   2025 Mar 22, 9:22am  

HeadSet says


AD says
the whole town is now without debt,

And also without assets (accounts receivable).


That's very true as there is zero equity or net assets earned or achieved.

There was no productive use of the money as far as building or creating something from the $100.

It comes down to "what do you have to show for the money" such as an investment to increase productivity like being able to effectively care for more patients or residents in a nursing home with the same amount of resources and capital.

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3   stereotomy   2025 Mar 22, 11:02am  

My interpretation is that the mere presence of debt distorts the natural economy. If people could only buy or barter with real money and goods, the economy would be stable. Debt pulls future consumption into the present, causes unnatural appetites and ambitions, and ultimately is a tool for the lenders armed with the legal right to confiscate the entire livelihoods of the debtors.
4   FortwayeAsFuckJoeBiden   2025 Mar 22, 11:19am  

that whole system of fiat is bullshit. natural solution is gold backed. but young retards rather use computer bytes fiat. infinite paper money bad, but infinite computer bytes good.
5   AD   2025 Mar 22, 12:58pm  

stereotomy says

My interpretation is that the mere presence of debt distorts the natural economy. If people could only buy or barter with real money and goods, the economy would be stable. Debt pulls future consumption into the present, causes unnatural appetites and ambitions, and ultimately is a tool for the lenders armed with the legal right to confiscate the entire livelihoods of the debtors


Yes as credit cards for working class and lower middle class are a major contributor to poor behavior.with household finances.

It fosters bad habits among a demographic that is an easy victim to the banks or credit card companies.

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6   DeportLibtards   2025 Mar 22, 2:30pm  

FortwayeAsFuckJoeBiden says

that whole system of fiat is bullshit. natural solution is gold backed. but young retards rather use computer bytes fiat. infinite paper money bad, but infinite computer bytes good.


Debt like in that can be created in gold money economy just as it can in a fiat one.

You: Ok. That will be a tenth oz of gold for that blow job I just gave you.

Me: OK, will you take an IOU?

You: Sure.

Me writes an IOU on the back of a napkin for tenth of an oz of gold and gives it to you.

If, in turn you issued me the same thing but mention the blow job as a service rendered, then that would be called an 'invoice' which is also a form of IOU.

Both can have due dates. NET 30, etc.

A credit instrument is a credit instrument is a credit instrument. Debt. Doesn't matter what the terms for paying it is denominated in.
7   stfu   2025 Mar 22, 3:00pm  

What the hell is wrong with you Patnetters that talk about wanting to end the fed and return to the gold standard. Are you out of your f_ing minds? Average age on here has to be over 50 - we've already played the game, by an existing rule set. I don't want anything to change because I've already finished the game using that existing set of rules.

Do you realize what's gonna happen to all your ETF's if the rules change? You're going to have to work until your 90, that's what.

Knock it off!
8   stereotomy   2025 Mar 22, 3:15pm  

Net 30 is better than financing a burrito over the next 36 months.
9   PeopleUnited   2025 Mar 22, 8:26pm  

stfu says

Do you realize what's gonna happen to all your ETF's if the rules change? You're going to have to work until your 90, that's what.

Don’t worry, when the satanic globalist new world order banksters take full control, they are going to implement massive depopulation schemes. Most people won’t survive. Those that do will wish they didn’t. The day of reckoning is coming.

Trump won’t even slow it down, in fact the things he is doing, while many of them are necessary and proper, will only make the globalists more desperate and determined to finish their plan for one world government and religious system in the near future. They have stated their goal is by 2030.

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