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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Ilaine who wrote (82608)3/20/2001 8:36:34 AM
From: maceng2   of 436258
 
Hi Cobalt.

Someone who is better than me at math might be able to figure this out but I
can't. If someone bought a tulip bulb for $1 and sold it for $10, and the
person who bought it for $10 sold it for $100, and the person who bought it
for $100 sold it for $1000, and the person who bought it for $1000 sold it for
$10,000, and the person who bought it for $10,000 sold it for $1, isn't the
economy a little bit ahead?

See if this helps….

Fiat money is created out of nothing, just like the rest of the universe -g-

That is for each dollar out in circulation, there is a dollar debt kept on the books if some
one cares to redeem it. It a bit like a particle and anti particle creation in nuclear physics.
The particles just wonder around happily unless they accidently meet -g-.

In your scenario, the guy who shelled out $9999 would probably go bust. Someone somewhere then has a $9999 dollars that are worth nothing (actually all dollars are then worth slightly less) as it's gone to "money heaven" as it's been "forgiven". Very Catholic system eh?

Of course, I'm no expert, see what the real beancounters have to say -g-

pearly
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