financial system

in #high6 years ago

Analyze well and see how it is possible.

Imagine that a couple arrives at a hotel in your land and asks
how much does it cost a room for the weekend.
The receptionist answers: 100 euros for 2 days.
Very well. Answer the gentleman. But we would like to know the
your facilities before we book. The room, the pool, the
restaurant...
"No problem," the receptionist answers. You leave a deposit
of 100 euros, take the key and can visit our facilities at
will.
If they do not like us, we'll refund the money.
"Combined," the couple said.
They left the 100 euros and went to visit the hotel.

It happens that:
The receptionist owed 100 euros to the grocery store on the side and went to run
pay the debt.
The grocer owed € 100 in the shoe store and went running to pay the debt.
The cobbler owed 100 euros at the butcher's and went to pay the debt.
The butcher owed € 100 to the travel agent and went to pay the debt.
The owner of the agency owed 100 euros to the hotel and went to pay the debt.
In this the couple completed the visit and informed that after all they will not stay at the hotel.

  • No problem. As I told you, here's your money,
    returned the receptionist.

Conclusion:
Everyone paid who they owed ... without any money.
The couple took the 100 euros they paid for all 5 debts in value
total of 500 euros.
Put your eyes here and realize that the entire financial system can be
a fraud.
Zero euros paid 500 in debt.
And we could go on indefinitely.
As Milton Friedman put it: "Do not ask where the money is because
he's not anywhere! "