Thursday, May 14, 2009

Seychelles Economics 101 - For Jj and SPPF Communists

Seychelles Economics 101 - Who needs this Government?

Seychelles is a small island nation in the middle of the Indian Ocean.  The holiday season is in full swing, but it is raining so there is not too much happening.

Everyone is heavily in debt and the country is bankrupt as well, and has embarked on an IMF program with a very large begging bowl and a repenting “we are so sorry to bother you” face, as Cuban-trained Danny Freckles, Golum Afifi, Pierre (not the rock but Saint Peter La Door) and the CBS-FEEnans Gang look for more loans to pay off the existing loans taken by Alberto Mangiare Torti Salezon, Jj Wizards, Ser Sang Goblins, Robin Hood aka Mookie, Danny Boy (not the Irish one) and Friar Tuck aka Gros Sosis.

Meanwhile, the Kings, Queens, Princes, Princesses, Maharajas, Ministers and PEE-S's in the Castles, All-Islands-Belong-To-Me Big Boy, Television Moguls and Casino Doctors fly around in their private jets and private helicopters to their private islands, and the previous Lords of the Ring fly off in First-Class seats with suited bodyguards to their Australian, Malaysian, Swiss, Dubai and American retreats!  Oh, how life is sweet as the stashed millions earn interest and grow by the day!  Isn’t the reward for Communism great?

Meanwhile, back to the local struggling economy….

A rich Russian tourist has just arrived in the foyer of a small local hotel.

He asks for a room and puts a crisp Seychelles Rupee SR 500 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor.

The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes SR 500.

The butcher takes the money and races to his supplier to pay his debt.

The wholesaler rushes to the farmer to pay SR 500 for pigs he purchased some time ago.

The farmer triumphantly gives the SR 500 note to a fisherman he bought fish from the past couple of months.

The fisherman runs to the local prostitute who gave him her services on credit and pays his SR 500 sin debt.

The prostitute goes quickly to the same hotel, as she owed the hotel for her hourly room use to entertain clients and hands over that now dirty SR 500 note.

At that moment, the rich Russian is coming down to reception and informs the hotel owner that the proposed room is unsatisfactory and takes his SR 500 back and departs.

There was no profit or income.  But everyone no longer has any debt and the small townspeople look optimistically towards their future of their respective businesses with no Government interference whatsoever!  Refreshing isn't it?

P.S. Note that there is no Government, Tax Department, Licensing Authority or Jj involvement here!  Now, do we need this Government to help us eke out a living?  Do we need taxes, surcharges and GST on goods and services?  I think the answer is quite clear! This is a simple lesson in Economics and also shows the value of the tourism industry to our small economy!  However, it also shows that we don’t need Government intervention in business!  Do you hear that Jj? 

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