Cash goes round and round
based on a post by Sabine McNeill
It is August. In a small town on the Florida panhandle, holiday season is in full swing, but it is raining so there is not too much business happening. Everyone is heavily in debt. Luckily, a rich English tourist arrives in the foyer of the small local hotel. He asks for a room and puts a one hundred dollar Federal Reserve note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor.
The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes $100.
The butcher takes the money and races to his supplier to pay his debt.
The wholesaler rushes to the farmer to pay $100 for pigs he purchased some time ago.
The farmer triumphantly gives the $100 note to a local prostitute who gave him her services on credit. (Bear with me, It's just a parable)
The prostitute goes quickly to Mr. Patel, the hotel manager, to whom she owed $100 for the use of a room to entertain "clients".
At that moment, the rich Englishman is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory, takes back his $100 bill, and departs. There was no profit or income, but everyone no longer has any debt, and the small townspeople look optimistically towards their future.
And the moral of the story?
Cash is ‘real’. An IOU is TRUST.