Quote:
Originally Posted by 73MB280SEL
Howdy,
The fallacy is this: "everybody" is not in debt. In order for someone to go into debt, someone else must first earn this money (or a portion of it), defer spending it, and provide it to the debtor for interest.
The story assumes that the debt is a big circle but it is not. It stops with the savers--either domestic or foreign.
Sholin
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Not to mention the hotel clerk would take the 100E, put it in some interest bearing vehicle that earns 8%, borrow 100E at 5%, and net 3% for nothing.