A sleepy village in Greece solves the debt problem

ioweddie

MB Enthusiast
SUPPORTER
Joined
Sep 16, 2012
Messages
1,474
Location
Winford Isle of Wight
Car
AMG Line Premier Plus Estate C220d
It is a slow day in a sleepy little village in Greece. The rain is beating down and the streets are deserted. Times are tough, everyone is in debt and the whole village lives on credit.

On this particular day a rich German tourist is driving through the village. He stops at the local hotel, approaches the reception desk and slaps a €100 note on the counter, telling the hotel owner that he wants a room for the night, but would like to inspect the room before confirming.

The hotel owner gives him the room keys and off the German goes to inspect the rooms. As soon as the visitor is out of sight, the hotelier grabs the €100 note & runs next door to pay off his debt to the butcher.
In turn, the butcher runs down the street & repays his €100 debt to the pig farmer.
The pig farmer then takes the €100 note and runs off the pay his bill at his supplier of feed and fuel.
The guy at the feed suppliers grabs the €100 note and goes to the local tavern to pay off his bill.
The publican then slips the money to the local prostitute drinking at the bar. She had also been experiencing tough times and had been forced to offer him, ‘services,’ on credit.
She promptly rushes to the hotel and pays off her room bill to the hotel owner with the €100 note.
The hotel proprietor then places the €100 note back on the counter, so the rich German traveller will suspect nothing.
At that moment, the traveller comes down the stairs, picks up the €100 note, stating that none of the rooms were suitable, pockets the money and leaves town.
No one produced anything!
No one earned anything!
However, the whole village is now debt free and looking to the future with a lot more optimism!
 

renault12ts

MB Club Veteran
Joined
Mar 5, 2009
Messages
16,212
Car
2005 W215 CL500.
Neat...because the tourist did not charge for the use of his money.
 

Dec

MB Enthusiast
Joined
Jul 28, 2004
Messages
4,475
Car
C180,A.
but the hotelier is now out by 100 euro?
Correct, the prostitute paid off her room bill of €100 to the hotelier, the hotelier then left the prostitutes €100 on the counter which was then taken by the German tourist so… the hotelier lost the €100 payment from the prostitute.

Dec
 

Neil Mackay

Active Member
Joined
Nov 17, 2011
Messages
859
Car
C32 AMG Estate
Dec said:
Correct, the prostitute paid off her room bill of €100 to the hotelier, the hotelier then left the prostitutes €100 on the counter which was then taken by the German tourist so… the hotelier lost the €100 payment from the prostitute. Dec
But reduced his 100 debt to zero so has broken even......?
 

Dec

MB Enthusiast
Joined
Jul 28, 2004
Messages
4,475
Car
C180,A.
I see, the Butcher is paid off... something is not right here?

Dec
 

renault12ts

MB Club Veteran
Joined
Mar 5, 2009
Messages
16,212
Car
2005 W215 CL500.
Correct, the prostitute paid off her room bill of €100 to the hotelier, the hotelier then left the prostitutes €100 on the counter which was then taken by the German tourist so… the hotelier lost the €100 payment from the prostitute.

Dec
How?

At the beginning of the day he owed 100 and was owed 100...so had nothing. At the end of the day, he owed nothing and was owed nothing and still had nothing.

The tourist lost out, and was the only one who lost out...because everyone else used his money (without his permission) to clear their debts...and no one felt he should be rewarded.

In other words, everyone hates bankers (the tourist) but will use them when ever they can to get what they want...without paying for the privilege if they can (Greece).
 
Last edited:

SPX

MB Club Veteran
SUPPORTER
Joined
Aug 29, 2010
Messages
16,421
Location
Yorkshire
Car
That one
In other words, everyone hates bankers (the tourist) but will use them when ever they can to get what they want...without paying for the privilege if they can (Greece).
That's not quite correct though is it? The tourist (or banker as you put it) has lent money out unkowingly and without charge.

The issue with Greece is that, some might say, certain institutions were keen to lend money because Greece would never be ably to fully pay it back, leading to them forever being in debt and in hock to ze Germans amongst others.

Just like Wonga ie good old fashioned loan sharking, but on a larger scale.
 

renault12ts

MB Club Veteran
Joined
Mar 5, 2009
Messages
16,212
Car
2005 W215 CL500.
That's not quite correct though is it? The tourist (or banker as you put it) has lent money out unkowingly and without charge.

The issue with Greece is that, some might say, certain institutions were keen to lend money because Greece would never be ably to fully pay it back, leading to them forever being in debt and in hock to ze Germans amongst others.

Just like Wonga ie good old fashioned loan sharking, but on a larger scale.
And if the Greeks paid their taxes and everything else that the rest of us feel we have to...I'd feel sorry for them.
 

SPX

MB Club Veteran
SUPPORTER
Joined
Aug 29, 2010
Messages
16,421
Location
Yorkshire
Car
That one
And if the Greeks paid their taxes and everything else that the rest of us feel we have to...I'd feel sorry for them.
I don't feel sorry for them, I can just see the situation for what it is.

Many countries throughout history have done the same, it's certainly nothing new (the Treaty of Versailles spring to mind)
 

grober

MB Master
Joined
Jun 22, 2003
Messages
28,366
Location
Perth, Scotland
Car
W204 C200CDI Estate
Debt is a construct with time--- its only becomes a problem when people want paid. :rolleyes:

A decade of overspending: how Greece plunged into economic crisis | World news | The Guardian
One major spender of money was the military, who still appear to maintain great political influence in Greek society. People have perhaps forgotten it was not that long ago that Greece was essentially ruled by a military Junta 1967-1974 --- backed allegedly at the time by the American CIA ! It was one of the reasons many Greeks were keen to join the EU to achieve some political stability. Looks as if its all coming unstuck again. :(
https://en.wikipedia.org/wiki/Greek_military_junta_of_1967–74
 

John Jones Jr

MB Enthusiast
Joined
Mar 23, 2013
Messages
4,620
Location
London & Dublin
Car
Mazda MX5 10AE, W201 2.5-16, W202 230K Sport man, Honda Accord & Suzuki 'Ricer'.
I must say I do feel sorry for the ordinary Greek folk. Between the previous Greek governments, the EC and foreign lending institutions (awash with money and didn't know what to do with it) they all shafted the people of Greece.
 

Mrhanky

MB Enthusiast
Joined
Jun 19, 2014
Messages
1,592
Car
Superb 3.6 4x4 & W221 S500
Only a country who misrepresented their fiscal position to gain entry into the Euro, would hold a referendum on whether to accept the terms of a bailout that is no longer even on the table.
 

grober

MB Master
Joined
Jun 22, 2003
Messages
28,366
Location
Perth, Scotland
Car
W204 C200CDI Estate
Only a country who misrepresented their fiscal position to gain entry into the Euro, would hold a referendum on whether to accept the terms of a bailout that is no longer even on the table.
Talking of fiscal misrepresentation try ‘fractional reserve banking’.:rolleyes:

quote :- At the time of the financial crisis banks held just £1.25 in reserves for every £100 issued as credit. Unlike Joe Public and contrary to the joke banks do actually employ " Monopoly Money"

Where Does Money Come From? | New Economics Foundation
 

WDB124066

MB Enthusiast
Joined
Apr 17, 2009
Messages
6,176
Car
1996 E320 Sportline Cabriolet x 2
If you really want to get to the bottom of all of this try looking at the swap notes and exchange rate "interpretations" by Lehman Brothers to find one of the main root causes of this problem, funny how it isn't mentioned too much at all....

The model above also forgets to take into account tax; income and VAT types....:):)
 

Dryce

MB Enthusiast
Joined
May 17, 2006
Messages
7,813
Car
..
I must say I do feel sorry for the ordinary Greek folk.
Democracy kind of puts the responsibility on the ordinary people as well.

If people chose to use their votes properly then politics in general might work better.
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top Bottom