A Simple Explanation Of The Current Economic Situation

Solve the financial crisis BAIL OUT

Dear Mr. Cameron,

Please find below our suggestion for fixing England's economy.
It is a slow day in a damp litle Irish town. The rain is beating down and the streets are deserted.

Times are tough, everybody is in debt and everybody lives on credit. On this particular day a rich German tourist is driving through the town, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstaiars in order to pick one to spend the night.

The owner gives him some keys and as soon as the visitor has walked
upstairs, the hotelier grabs the €100 note and runs down the road to pay his debt to the butcher.

The butcher takes the €100 note and runs down the street to pay his debt to the pig farmer.

The pig farmer takes the €100 note and heads off to pay his bill at the supplier of feed and fuel.

The guy at the Farmers Co-op takaes the €100 note and runs to pay his drinks bill at the pub.

The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him services on credit.

The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the €100 note.

The hotel owner then places the €100 note back on the counter so the rich traveller will not suspect anything.

At that moment the traveller comes down the stairs, picks up the €100 stating that the rooms are not satisfactory, pockets the money and leaves.

No-one produced anything, No-one earned anything.

However, the whole town is now out of debt and looking to the future with a lot more optimism.

And that fellow forum mates, IS HOW THE BAILOUT PACKAGE WORKS.


Jack McHammocklashing

 

If my mother had said yes instead of no I would have been born in Durban.

 

And that fellow forum mates, IS HOW THE BAILOUT PACKAGE WORKS.


Well that is how it should have worked, only the GERMAN TOURIST (DAVE)
Gave the money to the LOCAL HOTEL (BANKS)

But instead of sharing it around the Local hotel kept the lot paid himself a big bonus and foxtrot oscared down the road :-(

Jack McH

 

They do like beer in Denmark (starting from the Tuborg that there it tastes different from here for example).
I have lived there -although for only 7 months- and I really love Denmark because everybody is so liberal and smily (even a touch too much) and they don't make it a big deal of drinking beer from the bottle in the street and that exactly what you see girls/boys doing all the time, but you actually don't see any drunk in the street...

 

Pete - as I understand it there are two seperate but related problems. There is the Euro and Debt.

The Euro problem is simply the fact that the Euro was not set up properly. They devised a vehicle that had 17 different steering wheels and now they can't understand why its not all going in one direction. Each of the 17 different countries had its own tax and spending regime. In theory they were all supposed to do the same thing. In theory there is no difference between theory and practice - but in practice there is.

In time the Euro was always going to fall apart, just as the regime of fixed exchange rates in the past fell apart. But it didn't have to cause a calamity.

The calamity comes about from the level of debt. And yes the UK is in as much trouble as the US and most other countries. And yes we have always been in debt but never by so much.

When you borrow money the bank creates it out of thin air, and banks have been doing this on a massive scale that has never been seen before. Its called financial engineering. But what comes out of thin air and makes us all feel rich can just as easily disappear back into thin air and make up poor again.

I believe that there is a very big problem coming - called reallity. The Euro hasn't caused it, its merely the last straw that breaks the camel's back.

 

Jack has identified the reason that Ireland or Greece or Italy could go Bust.

If the Landlord had put the money in the Till instead of paying the lady of the night the Hotelier would not have been paid and, when the tourist had returned, would have seen his debt doubled.

Additional lesson for Politicians:- keep your Johnnson in your pants or face financial/political embarrassment.

 

The only times I have suffered from a hangover was during my stay in Denmark and drinking too much Tuborg from the bottle.