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Funny random stuff

quatrelle wrote:

Here is another one I dont understand this either, it happened about the same time as Grexit

The hotelier stole €100 from the hotel to return the €100 he “borrowed” from the German. So the hotel lost €100.

ESKC (Uppsala/Sundbro), Sweden

I think that puzzle about the money going around is a bit like this one which nobody seems to be able to explain either.

There is a similar one about calculating GDP. You say that four guys sitting around a table are a country. One sells a bottle of beer to the next for $1, who sells it to the next one for $1, and so on, and this “country” has a daily GDP of $4, without anybody creating anything or making any money. And if you do this 100x a day then the GDP will be $36500, or $9125 per capita. Or something like that

Administrator
Shoreham EGKA, United Kingdom

The hotel one is simple.

Everyone had a €100 asset (debtor….debt owed to them), and everyone had a €100 liability (creditor….debt that they owed to someone else).
That means that everyone’s net assets was zero.

It remains zero at the end.

So, yes after the round of paying down debt, everyone is debt free, but they are now also asset free (previously they all had a €100 asset).

They don’t need the €100 deposit to achieve this. They could each have forgiven debts, or agreed to exchange debts, to achieve the same end, but the use of cash is a more easily performed method…..if everyone plays along and doesn’t spend it on something else.

EIWT Weston, Ireland

I have always thought that measuring GDP is nonsense unless you relate it to the National bank’s credits and debits.

France

UK used to have “invisible exports” – money in from overseas investment.
I never see “invisible imports” which we should have now what manufacturing still exists is largely foreign owned.
The only thing that would make economic sense of our Conservative and Labour Governments investment would be using the two large aircraft carriers for piracy.

Maoraigh
EGPE, United Kingdom

The impossible job:

Last Edited by Dimme at 20 Mar 21:41
ESME, ESMS

Wonderful, someone earns a living working in recruitment copy pasting acronyms they’ve never understood.

always learning
LO__, Austria

Peter wrote:

There is a similar one about calculating GDP. You say that four guys sitting around a table are a country. One sells a bottle of beer to the next for $1, who sells it to the next one for $1, and so on, and this “country” has a daily GDP of $4, without anybody creating anything or making any money. And if you do this 100x a day then the GDP will be $36500, or $9125 per capita. Or something like that

I think GDP is officially zero in that case. The cost of ‘intermediate consumption’ (the imports in this case) is deducted from the ‘gross value of output’.

But GDP is still weird.

For example, a huge earthquake would boost Japan’s GDP enormously, because they would rebuild after the destruction.

More mundanely, a cold winter in the UK also boosts GDP!

White Waltham EGLM, United Kingdom

Correct; the GDP is zero in that case because it is output (one bottle at $1) minus intermediate consumption (also one bottle at $1).

But for example if you sell the bottle ten times with a 7% mark-up at each stage, the GDP would be $1 because at the end the same bottle would be sold at $2.

Biggin Hill

dublinpilot wrote:

Does an IR not include night flight privileges without the need for a separate rating?

No. But it overrides the need for night currency

ELLX
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