and the funny thing about it all (in a perverse sort of way) is that it isn't really money. It is a fiction based on the promise to pay and backed by the full faith and credit of the U.S. treasury. There are no gold or silver reserves to cover the paper....pure fiat. It is money only because the fedgov says so.
Read the top of every bill in your wallet. It is a note, a debt, a promise to pay.
Kind of like Wimpy when he said: "I will gladly pay you tomorrow for a hamburger today."
Rich man walks into hotel which is located in extremely depressed small town. Wanting to see a room but not sure if it was up to his standards, he offered to leave $100 with the clerk, who agreed.
As soon as he walks up stairs, the clerk dashes to the restaurant who he owes the $100. The restaurant owner dashes to the bank to pay off his debt of $100. The banker rushes to his favorite prostitute who he owes $100. And the prostitute pays the hotel clerk the $100 for 'use of room'.
About this time, the rich patron comes back and says No Thanks, he'll pass and receives his $100 back.
Everyone has been paid what was owed, but who really profited from this exchange?
From Jim Sinclair's MineSet.
and the funny thing about it all (in a perverse sort of way) is that it isn't really money. It is a fiction based on the promise to pay and backed by the full faith and credit of the U.S. treasury.
ReplyDeleteThere are no gold or silver reserves to cover the paper....pure fiat. It is money only because the fedgov says so.
Read the top of every bill in your wallet. It is a note, a debt, a promise to pay.
Kind of like Wimpy when he said: "I will gladly pay you tomorrow for a hamburger today."
KPN3%
Reminds me of a recently posted joke:
ReplyDeleteRich man walks into hotel which is located in extremely depressed small town. Wanting to see a room but not sure if it was up to his standards, he offered to leave $100 with the clerk, who agreed.
As soon as he walks up stairs, the clerk dashes to the restaurant who he owes the $100. The restaurant owner dashes to the bank to pay off his debt of $100. The banker rushes to his favorite prostitute who he owes $100. And the prostitute pays the hotel clerk the $100 for 'use of room'.
About this time, the rich patron comes back and says No Thanks, he'll pass and receives his $100 back.
Everyone has been paid what was owed, but who really profited from this exchange?
This is precisely why New Orleans will once again be 10 ft. deep next time another Cat3 Hurricane passes close by ...
ReplyDelete