It is a slow day in the small Minnesota town of Marshall , and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit.

A rich 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.

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 Farmer's Co-op.

The guy at the Farmer's 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 rich 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 town.

No one produced anything. No one earned anything... However, the whole town is now out of debt and now looks to the future with a lot more optimism.

And that, ladies and gentlemen, is how the United States government is conducting business today.

I suspect that someone with economics knowledge can find a flaw in this story but it's true that money is disconnected from production and/or gold stock.

I gave another example in a conversation I had with some friends in economics.They say that capitalism has it's problems but we haven't found a better system.I say that the population is not too much for the planet to feed everyone.But the production has slowed down very much, including the primary sector (The farmer farms less etc).So the economic system has reduced the mobility on the market and production.I can't post the whole conversation here but I somehow the debts are deleted and the production restarts then everyone will have the basics and everyone could work.

Not one person on the planet can fix the economy. It is not an objective thing. People have many different view points on it - austrian and keynesian economics for example.

It is also something that is very hard to understand. You can't just pop a pill and solve it. There is no secret trick to it. It will take a long time and it will have to be done day by day.

The only thing an average person can do is make sure they look after their finances and watch what they spend.

In my personal opinion however I feel the economy will just turn into turmoil in the future.


LM