federal reserve - debt ceiling - an analogy

[fivepennies]

I was having a discussion with a friend today about the control of money and used this argument with her:

Say I own all the cows in the world and no one else is allowed to own a cow, so you borrow a gallon of milk from my cow company. But at the end of the term you must pay me back that gallon of milk plus two more gallons of milk. Where ya gonna get it?

Well, my friend, who is pretty quick on the draw and always thinks outside the box immediately pipes up with, "Easy, I'll pay you back with goat's milk".

Clever girl. The problem with that is that the cow company would know the payment had to be "counterfeit" because they own all the cow milk in the world and hadn't loaned her those two extra gallons to pay them back, so my friend would go to jail for fraud.


(maybe you had to be there) :evilgrin: