Uncle Roy's Guidelines - 5. Quantitative Easing

Q.E.D.

Quantitative Easing Described.


Times are tough in Bristol. Many people are in debt and living on credit.

A banker visited on business a few days ago and dropped into the local hotel to book his accommodation. He left £100 in cash as a deposit and went to inspect the rooms and facilities.

The owner gave him the keys and as soon as the visitor has walked upstairs, the hotelier ran next door to pay his debt to the butcher. The butcher took the £100 note and walked round to his landlord to settle the outstanding rent. The landlord took the £100 note and paid his office manager last week's wages. The office manager took the £100 note and paid his drinks bill at the pub. The publican slipped the money along to the local prostitute drinking at the bar, who has also been facing hard times and given her services on credit. The hooker then popped to the hotel and paid off her room bill to the hotel owner with the £100 note. The hotel proprietor replaced the £100 note on the counter.

At that moment the banker came down the stairs, picked up the £100 note, said the room was not satisfactory and left.

No one produced anything. No one earned anything. However, the debts are cleared and people are facing the future with a lot more optimism.

And that, Ladies and Gentlemen, is how quantitative easing works.