The Obama Economy

06Nov09

This story has been floating around the Internet for a while, the analogy illustrates how the velocity of money breaks down in a debt based system. Stop reading if you've heard it.

Times are tough in the East Texas town of Madisonville.

The hard economic times have the entire town relying on credit, just to survive.

One rainy day, a wealthy traveler passes through town, and needs a place to stay. He walks into the only hotel and lays down a hundred dollar bill on the desk, asking to inspect a room before he decides to stay.

As soon as the man walks up the stairs, the hotel manager snatches up the hundred dollars and runs next door to pay off his tab at the bar.

The bartender takes the hundred dollars and goes across the street to pay the liquor wholesaler for the two cases of whiskey they delivered last week.

The liquor wholesaler calls the the local prostitute to come pick up the hundred dollars he owes her, for "services" rendered.

After stopping to see the liquor wholesaler, the prostitute walks into the hotel and pays the manager for the rooms she's used in the last week.

Relieved, the hotel manager places the hundred dollar bill back on the counter so as not to arouse the suspicions of the traveler.

Seconds later the traveler comes down the stairs and says the sheets look as though a prostitute had a go with someone on them, picks up his $100 bill, and leaves town immediately.

Nobody earned anything. Nobody increased their standard of living. But the whole town is out of debt, and suddenly has hope that things will change.

This is how the government of the United States of America is being run. Are you scared yet?