Wednesday, May 23, 2012

Is "Reconciliation" the Solution to the Debt Crisis?

The first part of this post is from the "Ask Marilyn" syndicated column.

Ask Marilyn: Is This the Solution to the Debt Crisis? | Gary Dalessandro of Sharpsville, Pa., writes: What's the solution to this problem?
A tourist stops at a small hotel, puts a $100 bill on the counter, and goes to inspect a room. The owner takes the bill and rushes off to pay the butcher, to whom he owes $100. The butcher races to his wholesaler and pays off his own $100 debt. The wholesaler hurries to the farmer and gives him $100 for the pigs he bought. The farmer hands over $100 to the party planner who set up his bachelor bash. The party planner heads to the hotel to pay the $100 she owes for the party room and lays the bill on the counter. At that point, the tourist returns to the front desk, says that the room is unsatisfactory, picks up the $100, and departs. The tourist has his money back, and everyone else is $100 ahead by reducing his or her debt by that amount. Could this be the answer to the debt crisis?
Marilyn responds: Can you determine what happened, readers? The answer follows:
Actually, everyone stayed exactly the same. For example, the farmer was owed $100 by someone, but he also owed $100 to someone else. The payments canceled one another out.
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Notwithstanding the writer's use of the word "bill" for "dollars"; is Marilyn correct?

What would happen if every "Taxpayer" inspected the cartel's business and came to understand that it is they who are the "holder in due course" of the funds that are used by this cartel?

How would this cartel's creditors satisfy payment?

For a smooth transition; check out the facts and become an informed activist.
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