How the U.S economy functions
An old one but amusing and insightful nonetheless......
It is raining, and the little 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 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to choose one.
The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher. The butcher takes the 100 Euro note, and runs to pay his debt to the pig grower. The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel.
The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town's prostitute that in these hard times, gave her "services" on credit.
The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there. The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything.
At that moment, the tourist comes down after inspecting the rooms, and takes his 100 Euro note, after saying that 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. And that, ladies and gentlemen, is how the United States is doing business today.
It is raining, and the little 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 100 Euro note on the reception counter, and goes to inspect the rooms upstairs in order to choose one.
The hotel proprietor takes the 100 Euro note and runs to pay his debt to the butcher. The butcher takes the 100 Euro note, and runs to pay his debt to the pig grower. The pig grower takes the 100 Euro note, and runs to pay his debt to the supplier of his feed and fuel.
The supplier of feed and fuel takes the 100 Euro note and runs to pay his debt to the town's prostitute that in these hard times, gave her "services" on credit.
The hooker runs to the hotel, and pays off her debt with the 100 Euro note to the hotel proprietor to pay for the rooms that she rented when she brought her clients there. The hotel proprietor then lays the 100 Euro note back on the counter so that the rich tourist will not suspect anything.
At that moment, the tourist comes down after inspecting the rooms, and takes his 100 Euro note, after saying that 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. And that, ladies and gentlemen, is how the United States is doing business today.
@YSV
ReplyDeleteActually this is the multiplying effect with rotation of money through different hands.The more thriving an economy,more rotation of currency occurs and hence GDP goes higher.But anyway the description of the circulation was hilarious :)
It is not good to hurt the life chances of young people. However, to deliver a purely admonitory slap does no harm. Adikkira kai thaan Anaikkum; Anaikkira kai thaan adikkum- Vatsalya is universal and basis of all interaction. Old and young, males indulge in some 'slapping' but we are also constrained.
ReplyDeleteMother is the only one who properly slaps. Whether we call 'Guru' or 'Friend' or 'Boss' doesn't matter.
YSV, you come from a distinguished Niyogi lineage. No doubt, you are like a young bull impatient of restraint. But, your ancestry is good, your inherited values- not worthless 'red pill' misogyny masquerading as machismo- wholly defeasible under the rubric of Bhakti and, though I don't know the details of your present employment, precisely because I'm not vindictive, still, it seems to me, if you grasp how the parable you quote above relates to Djikstra concurrency deadlock, then, no matter how worthless your own talents, an entreprenurial opening for you is created. I won't block you getting some Venture Capital.
Why?
You are stupid. You are shit. But you are young.
One young man previously who left comments on your blog found my blog through you. After putting several searching questions to me, he put a link to his own blog. I read what he was writing and tears of repentance came into my eyes. Why? It was the pure Saivite doctrine. I too am Tamil simply. Hearing message of Saints, why should I pretend to be more smart or sadistic?
Instead, why not consider that Lord Ganesha's stipulation to Ved Vyas is a qualitatively different approach, better than Chandy/Misra, to Djikstra type vighnaharta/karta?
Econ really isn't the sort of shite Sabhlok studied or Landsburg spouts or Krugman or BHL types claim to know.
It is merely a branch of mathematics which points to real world arbitrage opportunities.
Not opportunities to abuse my sister or come on my blog demanding naked pics of her. Opportunities to make a life for yourself.
I won't stop you.
It is not good to hurt the life chances of young people. However, to deliver a purely admonitory slap does no harm. Adikkira kai thaan Anaikkum; Anaikkira kai thaan adikkum- Vatsalya is universal and basis of all interaction. Old and young, males indulge in some 'slapping' but we are also constrained.
ReplyDeleteMother is the only one who properly slaps. Whether we call 'Guru' or 'Friend' or 'Boss' doesn't matter.
YSV, you come from a distinguished Niyogi lineage. No doubt, you are like a young bull impatient of restraint. But, your ancestry is good, your inherited values- not worthless 'red pill' misogyny masquerading as machismo- wholly defeasible under the rubric of Bhakti and, though I don't know the details of your present employment, precisely because I'm not vindictive, still, it seems to me, if you grasp how the parable you quote above relates to Djikstra concurrency deadlock, then, no matter how worthless your own talents, an entreprenurial opening for you is created. I won't block you getting some Venture Capital.
Why?
You are stupid. You are shit. But you are young.
One young man previously who left comments on your blog found my blog through you. After putting several searching questions to me, he put a link to his own blog. I read what he was writing and tears of repentance came into my eyes. Why? It was the pure Saivite doctrine. I too am Tamil simply. Hearing message of Saints, why should I pretend to be more smart or sadistic?
Instead, why not consider that Lord Ganesha's stipulation to Ved Vyas is a qualitatively different approach, better than Chandy/Misra, to Djikstra type vighnaharta/karta?
Econ really isn't the sort of shite Sabhlok studied or Landsburg spouts or Krugman or BHL types claim to know.
It is merely a branch of mathematics which points to real world arbitrage opportunities.
Not opportunities to abuse my sister or come on my blog demanding naked pics of her. Opportunities to make a life for yourself.
I won't stop you.
Guess you are on and off your meds within a span of an hour! I am not really "young" anymore seeing how I am on the wrong side of 30
DeleteNow that Iniyavel fellow is rather young and foolish. I would request to not go coocoo for cocoa puffs on him as he is quite impressionable and quite sensitive. I had to ban him because he was talking too much nonsense conspiracy theories and flaming red hot hatred against pretty much anyone who isn't Tamil.
Just FYI my lineage didn't really help in any way. And my caste isn't readily apparent from my family name (not Rao which is a title). It didn't make a difference in AP(now Telengana) ,certainly no one cares about it abroad.
Especially since Niyogis are the most heterodox of Brahmins!
Economics is not about maths but the utilization of scare resources in which math plays a strong role. But in general mathematical economics is a slippery slope to central planning technocrats.
Best to leave it to the masses to make their own decisions when it comes to their daily lives.
Krugman is rent seeker and a damn fool. Bernard Henri Levy is a poser and a snake oil salesman.
Landsburg is more to my liking.
I have my differences with Sabhlok but economically his ideas for India are sound.
Whatever comments I made on your blog cannot compare to the wild accusations and death threats you levelled against Sabhlok.
So you are jealous of my success w.r.t. besmirching Sabhlok's blog- quite natural. But that arose out of a superior knowledge of both Econ and the Law. That's where you fall down.
DeleteWhy mention KLrugman and BH 'botulism' Levy in the same breath? I was referring to 'Bleeding Heart Libertarians'. Landsburg's blog makes a virtue of economic illiteracy. Like a 'Nigerian' Spanish Prisoner scam email, which is deliberately ungrammatical so as to screen out smart people, Landsburg is acting rationally. Sabhlok's is a sadder story. He made an elementary mistake in his MS and I pointed it out to him. He decided not to change what he had written because his readers wouldn't notice. That sort of compromise damages one's ethos.
The parable you quote is foolish. Why? There was no need for any stranger to arrive for mutual debts to be cancelled. There is a well established game theorem explaining why, under information asymmetry, arbitrageurs spontaneously arise under both co-ordination and discoordination games.
You miss the one interesting 'apurva' element in my comment. This has to do with Ved Vyasa's stipulation that Lord Ganesha must pause in transcribing the MhB if he doesn't understand a shloka. How can this become a better approach to Djikstra concurrency- indeed Race Hazard generally- than Chandy & Misra? Think about it. You are young. Wrong side of 30? I'm the wrong side of 50. But you can make money, raise a family, out of seeing what sort of Business Model arises from the fairly obvious answer.
I am deeply moved by Iniyavel's blog which contains only the pure message of Saivite religion which recognises no distinction of class or caste or, most wonderfully!, even creed.
Okay, I'm a Dravidian, not Aryan- and, truth be told, an illiterate, stupid, meat eating wine drinking fellow at that! Still, since old men feel threatened by virtue displayed by youth, I consider that Iniyavel properly admonished me.
My generation made a big mistake whoring after the false God of 'Secularism'. The result is not that we serve Humanity humbly but, instead, get fixated on obviously corrupt 'Babas' and 'Kautilyas'.
If I have harmed you, I will make recompense. If not, go your way with my prayer that it brings you and your family and colleagues and friends and neighbours every benefit material and spiritual.
@windwheel
DeleteIf you call what transpired on Sabhlok's blog as "success" then there is no further point in arguing with you. As Wittgenstein said -If a person says 2+2=5, you can say he is wrong but if he says 2+2=57 then is he is no longer wrong as he is operating from another worldview altogether. A polite way of saying subject B is mad.
As for BHL, look I am not psychic. You cant just make up abbreviations and expect me to follow especially when you were mentioning famous (pop) thinkers in the same sentence. So Bernard H Levy seemed appropo.
Truth be told I wasn't aware of Landsburg until you mentioned him. I just skimmed his views initially but now I realize he may just be trolling the libertarian movement.
The outside stranger is quite apt as that I believe he is representative of a stimulus package made infamous in 2008-2009
"There is a well established game theorem explaining why, under information asymmetry, arbitrageurs spontaneously arise under both co-ordination and discoordination games."
Kindly speak in English and not academese. I don't care about your Doon school and LSE education. Go and try intimidate or impress someone else with your credentials and jargon talk. Over hear don't try to hide your ignorance behind academese.
What point is it to recompense me for any abuse you may uttered? It is routine as far as you concerned. Today you will may pray and fast for Chandi Devi to heal me and tomorrow you will dance nude before Kashmora pleading with this dark lord to drag me to hell.
Please save your efforts either way
'Today you will may pray and fast for Chandi Devi to heal me and tomorrow you will dance nude before Kashmora pleading with this dark lord to drag me to hell.'
DeleteMarvelous. I'd have stolen that.
The reason I went out of my fuck with Sabhlok has now become clear. Think about it. Blogs don't pay for themselves- not if, like me, are a Brahminbandhu as opposed to, like you,' having crawled out of a cockroach's meretricious womb.
'Over hear' is funny.
But it just sets the stage for- 'What point is it to recompense me for any abuse you may uttered? It is routine as far as you concerned.'
You do know, don't you, that you were in line for a subvention, your internetese seeming, at that time, quite sprightly, till you decided to utter threats against an elderly St. Stephanian IFS and now UN diplomat. You fucked yourself you stupid little shit.
Nothing to do with not being able to understand my upper class English.
You are shite and will remain so.
Shame about your sister.
If you wish to be smug about me making some typos then it says a lot more about your own low standards than me. By all means knock yourself out.
DeleteYour so called upper class English reminds of the bhaiyya character of Arjun Singh perfectly played by Amitabh Bacchan in Namak Halaal trying to impress his boss with his English commentary on Vijay Hazaare "Bhairon becomes baron becomes their minds are very narrow"
Atleast Arjun Singh was a "dehati" villager. What is your excuse?
For the last time I don't give a shit about your credentials. It is the sad man indeed who goes around flaunting his alma mater in a desperate attempt for respect. It is no better than an exhibitionist who goes to upto old women in parks and opens his trenchcoat flashing his privates.
Who knows in a few years, that's where you will be. Don't forget to tattoo St Stephens on your penis!
I am fucking with your life. Hurting your future. Destroying your chance to come up. You think it is a joke. Cool.
DeleteWhen people push you, you've got to push back. Otherwise, every time they have nothing to do, they come and fuck you over.
It's easy to hurt you.
Got to say, you've toned down the vitriol. Still, you are a Victim, with a big Vagina for a face.
What else can you do except get fucked?
Worthless shithead, don't you know any Telugu?
Translate and put some worthy stuff on this blog.
Redeem yourself .
Earth-wide implementation of Ahimas programs are the urgent need of the hour. Smash the milk-mafia. In Sanskritic civilization there is simply not even a word for "pro*titute". (this priceless nugget of info from Vadakayil's blog.)
ReplyDeleteSivananda di Jai!
Aryavarta for Aryaputra. Every girl a Sita, every man a Mahapurakh. Earth for the Mahapurakh.
Dhan Baba Nanak for extirpating Arabic language from Aryvarta and Dhan Guru Gobind Singh Sahib ji Maharaj for "uprooting turk" from hindostan once and for all. Let us purge our languages of semitic words.
May our thoughts be divine. Let us do our bhagti and indeed live a life "rich in heros" - actual heros not filmi fools posing as heroes and the time-wasters watching such inferior quality bollywood trash. Yes I am aware excess devotion is the sign of the thief but in order to become desbhagat we must become bhagat first. Earn honest living, share with the needy and always remember God. How hard is that? Step one - establish Ahimsa programs.
Poor lama mammals of Peru languish in cold weather all for some wool for cold rich women. Kind treatment of animals is a must. Live in symbiotic harmony with wool and milk producing creatures. NO euthanasia, no birth control (except restraint) - procreation must be taught by parents not in semitic schools that cement slavery into student's heads.
Smash semitic slavery through mantras, correct communication and ethical deeds.
Ahimsa only works with fellow ahimas practioners - Dharmics must unite otherwise we will be entering a new black age of slavery - after Kaljug it is always Satjug. Dharmics please develop new advanced weapons systems - concentrated mind full of gyan is best weapon but we also need physical weapons as we reside in physical plane. Live at 5th plane of Sach Khand, aim to reach dasam khand and beyond - there is something higher than turia stage.
Is OM really a Phoenician symbol? Are Palestianians descended from ancient Vedic settlers? Was dirty bomb discharged over Iraq by nutty nato?
We need Ahimsic military to help us. Help us Kalki, help us!
This comment has been removed by the author.
Delete
DeleteAs I suspected: this guy is loonier than all warner bros cartoons combined! Goddamnit what is it with these weirdos,why do they keep polluting my blog with these ramblings.
I realize I invited Vadakayil fellow travelers here and that still stands but that was to debate them . I cant respond to this incoherent,ignorant, paranoid gibberish.
It might be that being forced to use English as an academic language has stifled critical thinking among Indians. That's my 2 cents on why India produces mediocre academics at best and Vadakayil type cranks at worst. Most Indglish speakers would not understand the idiom I used above, which I believe proves my point.
DeleteI do think English language is somewhat responsible but the reasons are much deeper. I believe that using English , a foreign language of colonizers, gives rise to a mostly subconscious inferiority complex , some just accept they are inferior and carry on (the so called Macaulayites and Nehruvians) while others cover it up with bizarre theories of superiority in the bygone era and exaggerate whatever glories "Indians" had and downplay their warts. This requires a great deal of intellectucal dishonesty and sloppy thinking and surely enough it degenerates to what we are dealing with now with Vadakayil, PN Oak, Stephen Knapp etc. Not to mention our current visiting scholars Prabhnoor Rangi and Milin Patel!
DeleteAll glories be to our gotra system!!!
ReplyDelete