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Welcome To Vilcabamba
"The Sacred Valley of Longevity"

This Is A Privately Circulated Blog, scribbled exclusively for Friends & Familiars, that peers into and pontificates about Expat life in the hinterlands of South America. If your eyesight is less than optimal (like mine), then just click the type size up a notch on your browser..

Here you will find a series of curmudgeonly commentaries that I've posted from atop my rickety old soapbox for the past few years. And yes, there are indeed political rantings, so place your seats in the upright position and fasten your seat belts .... it may be a bumpy ride.


How The Debt Money System Works

So, wann'a know the cause of the US financial crises? OK, here it is, short and sweet in a story about a little Texas town and "debt" money.

Times are tough, everybody is in debt, and everybody lives on credit here. On this particular day a rich tourist from back East is driving through town. He stops at the motel and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

The pig farmer takes the $100 and heads off to pay his bill at the supplier of feed.

The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her services on credit.

The hooker rushes to the motel and pays off her room bill with the motel owner.

The motel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the $100 bill, states that the rooms are not satisfactory, pockets the money, and leaves town.

What just happened here? No one produced anything. No one earned anything. However, the whole town is now out of debt and now looks to the future with a lot more optimism..

And that, dear reader, is how the United States Government is conducting its "fiat money created out of thin air" finances today.