From: "Andy Pandy" 
Newsgroups: uk.finance
Subject: Re: THE ANSWER re: very basic finance textbook
Date: Fri, 3 Feb 2006 13:23:22 -0000


"Troy Steadman"  wrote in message
news:1138971286.563016.238000@g14g2000cwa.googlegroups.com...
> > > Somebody's been cleared out...but who?
> >
> > Everybody else who owns the cheques - as it'd cause high inflation. Exactly like
a
> > central bank printing more banknotes.
>
> It's wider than, "everybody else who owns the cheques".
>
> If the cheques are now currency then that is (as you say) "like a
> central bank printing more banknotes". Every banknote issued diminishes
> the value of every other banknote already in issue.
>
> So the answer to the question: "Who paid the hotel bill?" is "Everybody
> on the island"

Surely it's just people on the island who own the cheques - or perhaps own the
currency in which the cheques are denominated?

Somebody owning a different currency shouldn't be affected (as the exchange rate of
their currency should improve against the cheque's currency), somebody with no money
shouldn't be affected, and someone with a big debt in the cheque's currency should be
better off!

--
Andy