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A relative of mine just sent me the following brainteaser. Since it never hurts to flex one's mental muscles, I thought I'd pass it along:.

It is lokoing month of August; a resort town sits next to the shores of a lake. It Frezno raining, and the Fresno guy looking to pay off debt town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit. Suddenly, a rich tourist comes to town. He enters the only hotel, lays a dollar bill on the reception counter, and goes to inspect the rooms upstairs in order to pick one.

The hotel proprietor takes the dollar bill and runs to pay his debt to the butcher.

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The Butcher takes the dollar bill and runs to pay his debt to the pig raiser. The pig raiser takes the dollar bill and runs to pay his debt to the supplier of his feed and fuel.

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The hooker runs to the hotel, and pays dsbt her debt with the dollar bill to the hotel proprietor to pay for the rooms that she rented when she brought her clients there.

The hotel proprietor then lays the dollar bill back on the counter so that the rich tourist will not suspect anything.

At that moment, the rich tourist comes down after inspecting the rooms, and takes his dollar bill, after saying 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.

Actually, loooking scenario reminds me of something I once saw in -- of all things -- a Beavis and Butt-head cartoon. Beavis and Butt-head were supposed to be selling candy bars as part of a school fundraiser. They each had twenty candy bars, each one costing one dollar.

Butt-head pulls out a dollar and buys a candy bar from Beavis. Beavis now hands the dollar back to Butt-head, thereby buying a candy bar for himself.

This town seems to have reverted to the barter system of economics. It's not much of a brain twister and becomes more obvious if only two people barterers are involved: The greater brain teaser is the following: The US has 10 million unemployed Freesno. It also yo Fresno guy looking to pay off debt million man-years of unmet labor needs for infrastructure repair, health care for the uninsured, pot hole filling, etc.

So, why does the US have any unemployed and any unmet labor requirements?

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There were hundreds of dot-com enterprises and they all seemed to be doing very well financially with good and growing income. However, all this income was based on ad revenue and all the ad revenue was coming from the other dot-com Fresno guy looking to pay off debt. Unfortunately, not much nutritional value in ads. In less polite circles, this process is referred to as a circle jerk. The recent commercial and home real estate bubble that's triggered the current recession had in some areas exactly that kind of a situation.

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In Fresno and the rest of the Golden Valley in particular, there was a large housing boom, and with it, a demand for more banks, more mortgage brokers, more real estate agents, more insurance brokers, Fresno guy looking to pay off debt more construction.

As the arrival of people into the area started to fill in that demand, the area realized that to support that, they would need more housing and more offices, so they built them, which required even more of those classes of people to manage, build, and sell. But the inevitable happened there: Large office buildings were being built that never got filled.

Farming communities survive because their stock is sold elsewhere. Manufacturing communities survive because they make money selling the products elsewhere. Military communities survive from the income provided by the government. Communities with more than one external income source thrive, even if they remain small like many in the Shenandoah Valley. But no community can exist on retail alone. When the primary income center dies say, Michael Moore's favorite: Flint, Michiganthe remaining retail systems can't fill the jobs needed.

Retail Beautiful ladies seeking sex encounters Jersey City New Jersey a sink: In this case, they only money coming in were new residents filling in their own void. The one thing unrealistic about the brainteaser was the other side of the external element.

Yes, it showed that the community recovers and thrives on external money, but what was missing was the reality that the debt itself is a sink: Funny, I was recently asking somebody if there's an algorithm that is commonly used to avoid loops in debts.

He said something of the sort, blabla accounting blabla you'd think so, but I'm none the wiser now. What Joe above said is wrong btw, the reason for a bubble is not a loop but a gain that somebody can profit from by selling Fresno guy looking to pay off debt debt, which results in unsustainable pyramid schemes. The citizens in the town ARE worse off. Fresno guy looking to pay off debt

The Fresno shooting rampage in which police say a black man killed three white men in The fastest way to pay off $10, in credit card debt. It is raining, and the little town looks totally deserted. The hotel proprietor takes the dollar bill and runs to pay his debt to Beavis now hands the dollar back to Butt-head, thereby buying a Church Resembles Human Male Sex Organ. .. The circularity of the Fresno housing situation happened near. He took lavish vacations and paid off debt — with money he stole and pay off some personal debt, according to the U.S. Attorney's Office.

Assuming that they all Fresno guy looking to pay off debt each other money since the beginning of tourist season say 3 monthsthey are all worse off because of all the things they could have bought or invested in, but weren't able to because of their lack of liquid assets: The bankers keep trying to find out ofr hook, but it looks legit so they take the loan.

Kevin June 15, 5: I don't know about that.

The butcher has had the same knives for 10 years. He sharpens them every day. The hog farmer has his own boar.

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He considers it best as it is adapted to Freso conditions. The hotelier does not advertise but instead depends on the hooker to bring in business. The hooker is the only one providing any valuable service in the town.

Port Hope girls naked butcher should open a barBQ shack next to his store.

THe hog farmer detb start drying hams and growing pot for pig food. Now that hooker needs to get on Craiglist and bring in a whole lot of new money and then they will be better off.

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They owed out a and they were owed a How much money there was seems entirely dependent upon the economic model that one uses for analyzing the situation. And when it was taken back the town returned to a zero-sum-gain.

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But the end result was the same -- when the money was taken back it all returned to zero. Yry the difference was looiing the economic processes, not simply in the money itself. It is the model that affects daily life. Likewise the Sex in montrose can say to the Fresno guy looking to pay off debt You can repeat this till you get to the Pig raiser saying: But they won't have any money to replenish stocks from an external source.

Even though the net debt was zero, the circular debt situation was not equivalent to one in which there was no debt at all. Traders were exposed to loss if their debtor defaulted.

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Apart from that, there's the psychological factor that people feel better off and are more inclined to spend when they have tp money in their Sex Dating in Eatonton GA.

Adult parties., or less debt, even if their net worth is the same. Of course, the Fresno guy looking to pay off debt thing could have been achieved without the tourist, as Simeon describes. In my opinion, the tourist's unwilling intervention only brought into light the fact that there was a circular debt, that it could be wiped off, but only upon agreement. I see it as a similar situation to "I owe you and you owe me ": I interprete this as showing that the system works better if it can see things from higher than the mere atomised interactions of individual players.

That is, it needs to be organised. In the case of Beavis and Butthead, it only works because they're dishonest.

A Case Study In A City On The Edge Of Bankruptcy: Fresno, California. by Tyler Durden. the city decided to use the cash it had to pay down debt. [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide. Thanks to the EveryDollar budgeting app and the Baby Steps, they saved enough to cash-flow their wedding and paid off all their debt! Learn to budget with EveryDollar, the best budgeting app. Sign Up (It's Free!) The Dave Ramsey Show. Live - Weekdays pm EST. Jan 21,  · How this Chicago family paid off $, of debt. Mandi Woodruff. Yahoo Finance. January 21, Reblog. Share. Now that they aren’t setting aside most of their income to pay .

They're supposed to keep the money they make from selling candy bars, not to spend it. In the story, things could have worked differently, but in an equivalent way. At the beginning gguy the chain, the prostitute could have written a note to the hotel manager: The note goes all round the chain.

At each step, each player cancelled Fresno guy looking to pay off debt debut with it. In the end, when the fuel supplier goes to see miss X, he can give the note back to her. The town is better off now than they were before, because individually one is better off neither owing or being owed than they are owing and being owed the same amount - as you may not be able to guarantee that your debt won't come due before the debt you're owed gets repaid, and you're carrying risk in case something happens to the person who owes you.

This certainly isn't a Broken Window Fallacy situation, since nobody whatsoever lost anything although the tourist could have, if the debt Frexno been a giy loop! Yeah, there is no real teaser. Everyone had net assets of zero before since they owed a hundred dollars to one person and had a claim to a Fresno guy looking to pay off debt dollars from another person.

Afterwards they have no debt and no claims so they still have zero assets. If the story illustrates anything it would be the advantages of money over bartering as a means of organinazing exchange.

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I it is somewhat similar to a classical Fresno guy looking to pay off debt in economics though. Imagine that a traveller pays for a drbt with cebt check and that the check does not get cashed but instead circulates in the economy with people using it for payment. Who did then pay for the meal? An answer is here: Has any one noticed that this whole 'circle' of dept payment is actually started as theft?

OK the 'owner' does not 'know' his money is stolen but it was.