A Businessman walks into town and goes to the hotel, he gives the hotel owner a 100 bill for a room as deposit, and says he will confirm a bit later. The hotel owner takes the 100 and pays the butcher the 100 that he owes him. The butcher takes the bill and pays the lawyer the 100 that he owes him. The lawyer goes to the prostitute and pays her the 100 that he owes her. The prostitute goes to the hotel owner and pays him the 100 that she owes him. Then the businessman returns to the hotel, says he doesnt need the room, takes his 100 back and leaves. But now everyone’s debt is settled! How…ha ha.
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Nice one.
It’s the quantitative easing principle, in a way.
Everyone’s debts were in balance even before the businessman arrived and if they’d known, they could have done a mutual debt-cancellation settlement without his $100?
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Yeah it’s possible. It’s called prime value of Mooney.