Friday, December 12, 2008

Quote of the Day

As antagonistic and occasionally misguided as he is, Billy Beck gets the quote of the day.

Try to imagine poker game.

You and four of your friends decide on a friendly game one evening. Sitting down at the table, you decide on nickel stakes, but nobody has any nickels. Everyone has dollars.

So, upon finding a box of paper-clips, it is agreed that they will serve as tokens in the game. Each paper-clip will represent a nickel.

Everyone buys in for a dollar. Each person receives twenty paper-clips.

The game starts. Round & round it goes. Everyone has had a good time, and it's time to cash out. The paper-clips are gathered, whereupon it is now discovered that someone has sneaked ten paper-clips onto the table during the game. There are now 110 paper-clips representing five dollars.

Question: what has happened to the value of each paper-clip?

That is inflation, ladies and gentlemen.

Very clearly explained.

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