How credit works- why cant UK PLC do this??

[pzz76077]

I guess that the rich tourist is......French.

Anyone else care to speculate??

PZZ

[sweetandsour]

It is the month of October and it is raining.

The little French town is totally deserted. These are tough times, everybody is in debt, and everybody lives on credit. Suddenly, a rich tourist comes to town.

He enters the town's only hotel, lays a 100 Euro note on the desk, and asks the manager if he can go upstairs to inspect the rooms before deciding which one to stay in for the night.

The manager takes the 100 Euro note and quickly runs to pay his debt
to the butcher. The butcher takes the 100 Euro note and runs to pay
his debt to the pig farmer. The pig farmer takes the 100 Euro note
and runs to pay his debt to the feed merchant. The feed merchant takes the 100 Euro note and runs to pay his debt to the town’s prostitute that in these hard times, gave her services on credit.

The prostitute runs to the hotel and gives the manager the 100 Euro note to pay for the rooms she rented when she brought her clients there. The manager then lays the 100 Euro note back on the desk.

At that moment, the rich tourist comes downstairs after inspecting the rooms and takes back his 100 Euro note, saying that 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. Isn't life wonderful!

PZZ

So the result of this merry-go-round is that no value has been added and they might as well all stayed at home and not bothered?

Sounds about right for France.

[ace00]

So the result of this merry-go-round is that no value has been added and they might as well all stayed at home and not bothered?

Sounds about right for France.

And the hotel manager goes bankrupt. But he has to eat. So he gets some sausages on credit.......................................etc.. .....................

[expat]

It is the month of October and it is raining.

The little French town is totally deserted. These are tough times, everybody is in debt, and everybody lives on credit. Suddenly, a rich tourist comes to town.

He enters the town's only hotel, lays a 100 Euro note on the desk, and asks the manager if he can go upstairs to inspect the rooms before deciding which one to stay in for the night.

The manager takes the 100 Euro note and quickly runs to pay his debt
to the butcher. The butcher takes the 100 Euro note and, keeping aside 20 Euros for VAT, runs to pay his debt to the pig farmer. The pig farmer takes the 80 Euro that he gets and keeps 16 Euros for VAT, then runs to pay his debt to the feed merchant. The feed merchant takes the 64 Euros and, keeping 12.80 Euros for VAT, runs to pay his debt to the town’s prostitute that in these hard times, gave her services on credit.

The prostitute is legit but IR35-caught, though not VAT registered yet, so she keeps aside 12.8% plus 11% for NICs and 20% for income tax, i.e. 20.39, so she runs to the hotel and gives the manager the 30.81 Euros that are left to pay for the rooms she rented when she brought her clients there. The manager then lays the 30.81 Euros on the desk.

At that moment, the rich tourist comes downstairs after inspecting the rooms and with a scowl picks up the 30.81 Euros, saying that he did not mind the rooms, but the town is just too greedy and he doesn't understand what they spend it all on, 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. But the rich tourist feels robbed and will never come back and spend any more money in the town. Isn't life wonderful!

[Menelaus]

17 trillion has been given out by various governments around the world (US Dollars).

PZZ


Would we need farmers any more??

Surely this includes loan guarantees where the money is not disbursed by the bank?