The Hundred Dollar Bill

: What you can do with a $100.00 bill>> > It's a slow day in the small town of Pumphandle and>> the streets are deserted.>> >>> > Times are tough, everybody is in debt, and everybody is>> living on credit.>> >>> > A tourist visiting the area drives through town, stops>> at the motel, and lays a $100 bill on the desk saying he wants to>> inspect the rooms upstairs to pick one for the night.>> >>> > As soon as he walks upstairs, the motel owner grabs the>> bill and runs next door to pay his debt to the butcher.>> >>> > (Stay with this..... and pay attention)>> >>> > The butcher takes the $100 and runs down the street to>> retire his debt to the pig farmer.>> >>> > The pig farmer takes the $100 and heads off to pay his>> bill to his supplier, the Co-op.>> >>> > The guy at the Co-op takes the $100 and runs to pay his>> debt to the local prostitute, who has also been facing hard times and>> has had to offer her "services" on credit.>> >>> > The hooker rushes to the hotel and pays off her room>> bill with the hotel Owner.>> >>> > The hotel proprietor then places the $100 back on the>> counter so the traveler will not suspect anything>> >>> > .>> >>> > At that moment the traveler comes down the stairs,>> states that the rooms are not satisfactory, picks up the>> $100 bill and leaves.>> >>> > No one produced anything. No one earned anything.>> However, the whole town now thinks that they are out of debt and there>> is a false atmosphere of optimism.>> >>> > And that, my friends, is how a "government>> stimulus package" works!>>>

This makes my mind hurt. Did everyone end up happy here in this scenario?

Sadly, this example which attempts to explain the stimulus better describes the limitations of the stimulus or the feds funny money. You see this example better demonstrates the velocity of money than the creation of the same. The stimulus would better be represented with the hotel guest putting 1000 one hundred dollar bills on the desk of the hotel, and the hotel owner taking that money and giving it to the bank to allow the bank to subsidize everybody in town who is owed money, and the bank would foreclose on much of the debt, make few loans, and pay back only 80% to the hotel owner.

If America put 100% of stimulus money into infrastructure, the combination of stimulus and velocity of money would actually have grown our economy significantly......instead the velocity of money is stagnant, and some folks have all this concern about debt.......which further contracts our GDP, and Europe has shown austerity does not work.

First... this is now political.

Second... only an idiot believes that the federal govt can manage or more efficiently spend their money.

See obama four trillion dollar "budget".

First... this is now political.

Second... only an idiot believes that the federal govt can manage or more efficiently spend their money.

See obama four trillion dollar "budget".

1. It is not political, it is a discussion of economics. However, you are free to whine some more......I am sure Boards will have a mild cheddar with your whine.

2. Actually that is the most absurd thing you have said in awhile. You are going to build an interstate highway bridge more efficiently than the government......even you have to recognize your theories are fallow.

3. I first see a 16 trillion dollar GDP, and the budget is this nation's budget, but then again........you got to whine some more.

Yella wrote: A tourist visiting the area drives through town, stops>> at the motel, and lays a $100 bill on the desk saying he wants to>> inspect the rooms upstairs to pick one for the night.

Here's another approach and one I used to do when traveling.
Stop at a Hilton or Hyatt or some other big high-end hotel (they have safe parking lots).  Find a nice parking spot.  Get a good night's sleep in the car.  Keep the hundred dollar bill in your pocket.  When you wake up,  go to a truck stop and get a shower for five bucks.
You just saved $95.

p.s. don't sleep in the truck stop parking lot. They run those rigs all night long and the noise will keep you from sleeping.

I guess the Tooth Fairy was the visitor.

Where did the $100.00 come from? It was borrowed from the visitor and never returned. THAT'S how STIMULUS FAILS. No one can pay back the visitor.

Yella wrote:: What you can do with a $100.00 bill>> > It's a slow day in the small town of Pumphandle and>> the streets are deserted.>> >>> > Times are tough, everybody is in debt, and everybody is>> living on credit.>> >>> > A tourist visiting the area drives through town, stops>> at the motel, and lays a $100 bill on the desk saying he wants to>> inspect the rooms upstairs to pick one for the night.>> >>> > As soon as he walks upstairs, the motel owner grabs the>> bill and runs next door to pay his debt to the butcher.>> >>> > (Stay with this..... and pay attention)>> >>> > The butcher takes the $100 and runs down the street to>> retire his debt to the pig farmer.>> >>> > The pig farmer takes the $100 and heads off to pay his>> bill to his supplier, the Co-op.>> >>> > The guy at the Co-op takes the $100 and runs to pay his>> debt to the local prostitute, who has also been facing hard times and>> has had to offer her "services" on credit.>> >>> > The hooker rushes to the hotel and pays off her room>> bill with the hotel Owner.>> >>> > The hotel proprietor then places the $100 back on the>> counter so the traveler will not suspect anything>> >>> > .>> >>> > At that moment the traveler comes down the stairs,>> states that the rooms are not satisfactory, picks up the>> $100 bill and leaves.>> >>> > No one produced anything. No one earned anything.>> However, the whole town now thinks that they are out of debt and there>> is a false atmosphere of optimism.>> >>> > And that, my friends, is how a "government>> stimulus package" works!>>>

This makes my mind hurt. Did everyone end up happy here in this scenario?

Liberals are and think it is manna from heaven.

PACEDOG#1 wrote:

Yella wrote:: What you can do with a $100.00 bill>> > It's a slow day in the small town of Pumphandle and>> the streets are deserted.>> >>> > Times are tough, everybody is in debt, and everybody is>> living on credit.>> >>> > A tourist visiting the area drives through town, stops>> at the motel, and lays a $100 bill on the desk saying he wants to>> inspect the rooms upstairs to pick one for the night.>> >>> > As soon as he walks upstairs, the motel owner grabs the>> bill and runs next door to pay his debt to the butcher.>> >>> > (Stay with this..... and pay attention)>> >>> > The butcher takes the $100 and runs down the street to>> retire his debt to the pig farmer.>> >>> > The pig farmer takes the $100 and heads off to pay his>> bill to his supplier, the Co-op.>> >>> > The guy at the Co-op takes the $100 and runs to pay his>> debt to the local prostitute, who has also been facing hard times and>> has had to offer her "services" on credit.>> >>> > The hooker rushes to the hotel and pays off her room>> bill with the hotel Owner.>> >>> > The hotel proprietor then places the $100 back on the>> counter so the traveler will not suspect anything>> >>> > .>> >>> > At that moment the traveler comes down the stairs,>> states that the rooms are not satisfactory, picks up the>> $100 bill and leaves.>> >>> > No one produced anything. No one earned anything.>> However, the whole town now thinks that they are out of debt and there>> is a false atmosphere of optimism.>> >>> > And that, my friends, is how a "government>> stimulus package" works!>>>

This makes my mind hurt. Did everyone end up happy here in this scenario?

Liberals are and think it is manna from heaven.

Like I said this damn thing makes my mind hurt. Did it work? Was anybody screwed out of a hundred bucks? Forget the political aspect.

Well said Yella.

Just remember, money is only worth what somebody thinks it is. In other words a dollar bill in a non monetary society would only be worth the paper it is printed on.

And sadly because current monetary practices being what they are, our currency is quickly becoming just that.

A gunman walks in robs the owner of a donut store of a $100 bill. Turns and walks away. Gives it to his crackhead girlfriend that then buys more crack. The crack dealer pays some fat cops that protect his operation and they then buy lots and lots of  donuts. Everybody's happy.

Still no one has been able to figure out where the $100.00 came from in the first place or who is paying the rent on the use of that $100.00.

Still no one has been able to figure out where the $100.00 came from in the first place or who is paying the rent on the use of that $100.00.


Nothing to figure out. The hotel owner improperly converted the money to personal use when it was held in escrow. The simple fact that the money was returned does not justify his wrongful conversion of the money. There was no rent on the money because absent a writing, none could be expected.

Congress was circumvented to abdicate the creation of the hundred dollar bill to a private central bank (federal reserve).

If the govt had maintained that constitutional responsibility that creation would not be debt and no interest.

Funny isn't it... the things that the govt was constitutional bound to do they resist... but things they aren't they take over.

2seaoat wrote:Still no one has been able to figure out where the $100.00 came from in the first place or who is paying the rent on the use of that $100.00.


Nothing to figure out.  The hotel owner improperly converted the money to personal use when it was held in escrow.  The simple fact that the money was returned does not justify his wrongful conversion of the money.  There was no rent on the money because absent a writing, none could be expected.

No one was hurt as it turned out but if the man inspecting the rooms returned before the 100 bill was returned the hotel man would have gotten stung. Timing was everyrhing.

The hotelier was hurt. The potential patron took his $100 back, seeing no suitable rooms. So, the money that was owed the hotelier by the hooker is now gone.