Gov'mt spending ie: Cash 4 Clunkers

As some of you know I am a Finance Manager at a Ford dealership, now we just started rolling the Cash 4 Clunkers program yesterday and today ....

Now after completing some of the deals and finishing up the paperwork all I could think of was this e-mail that Doc sent me a couple of weeks ago....3

Subject: Government Spending

<TT>It is the month of August, a resort town sits next to the shores of a </TT><TT>lake. It is raining, and the little town looks totally deserted.</TT>
<TT>Times are tough and everybody is in debt, and everybody lives on credit.</TT>

<TT>Suddenly, a rich tourist comes to town.</TT>
<TT>He enters the only hotel, lays a $100 dollar bill on the reception </TT><TT>counter, and goes to inspect the rooms upstairs in order to pick </TT><TT>one for the week.</TT>

<TT>The hotel proprietor takes the $100 dollar bill and runs to pay his </TT><TT>debt to the butcher.</TT>

<TT>The butcher takes the $100 dollar bill, and runs to pay his debt to </TT><TT>the pig farmer.</TT>

<TT>The pig farmer takes the $100 dollar bill, and runs to pay his debt to </TT><TT>the supplier of his feed and fuel.</TT>

<TT>The supplier of feed and fuel takes the $100 dollar bill and runs to </TT><TT>pay his debt to the town's prostitute that in these hard times, gave </TT><TT>her "services" on credit.</TT>

<TT>The hooker runs to the hotel, and pays off her debt with the $100 </TT><TT>dollar bill to the hotel proprietor to pay for the rooms that she </TT><TT>rented when she brought her clients there.</TT>

<TT>The hotel proprietor then lays the $100 dollar bill back on the </TT><TT>counter so that the rich tourist will not suspect anything.</TT>

<TT>At that moment, the rich tourist comes down after inspecting the </TT><TT>rooms, and takes his $100 dollar bill, after saying that he did not </TT><TT>like any of the rooms, and leaves town.</TT>

<TT>No one earned anything. However, the whole town is now without debt, </TT><TT>and looks to the future with a lot of optimism .</TT>

<TT>And that, ladies and gentlemen, is how the United States Government </TT><TT>is doing business today.</TT>

Put a whole new prespective on this program..... :soapbox:

Maybe I'm missing the point, but doesn't that leave the hotel proprietor out $100?

Wow.

That's is pretty frightening, and pretty accurate.

Quote:

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Originally Posted by holli4pirating

Maybe I'm missing the point, but doesn't that leave the hotel proprietor out $100?

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Actualy, that IS the point in a way.

Nobody actually paid anything off to anyone else. Paper was shuffled, a big show was made, and in the end, nothing had changed.


Right now, the government is borrowing money from the people to bail the people out of debt. It makes absolutely no sense in the long term.

In fact, it's makes as much financial sense and Glen's story.

Quote:

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Originally Posted by holli4pirating

Maybe I'm missing the point, but doesn't that leave the hotel proprietor out $100?

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Not really he paid off the debt to the Butcher.... right?????

But yeah that isn't the point ....

We're going to have to rename the Ponzi scheme. It is now known as the


...


GLENZI scheme. It should not only work really well, but it's going to save a whole bunch of printing costs. And paper. Which saves trees. And ink. Which saves, black stuff. Man, this is a GLENZI :mexwave: GREENI

PLAN. Something this fine is a definitely a plan not simply a scheme.

It makes perfect sense to me since in effect, the privately owned non-governmental Federal Reserve system makes money out of nothing (Fiat), actually most all of it never exists since virtually none is even printed, it's just a credit/debit in binary code. Then the "Fed" ("No more Federal than Federal Express") charges interest and receives bonds for
"repayment" of the "money" the privately held Federal Reserve arbitrarily created literally out of nothing with nothing (Fiat) to back it up. One of the grandest of illusions. It's amazing really that the scheme continues to be allowed to happen.

Chris L

:roflmao :roflmao :roflmao

sweet

So how is that working Glen?

is the program DOING something (can I get a new truck cheaper?)

I'm thinking about buying a truck :OT

You guys forgot the part where the 100$ goes to Walmart and then China. It is a great illustrative point.

Good story. I think it works like this: If I owe you $100 and you owe me $100 then we really don't owe anything. The tourist and his $100 is just a ruse.