This is how money circulates in the village and everyone is happy.
An Italian tourist arrives in Nyeri town looking for a place to sleep. He gets into Kirathimo Lodge, slaps Kshs. 3K on the counter & heads straight upstairs to select a 3rd-floor room.
Mr. Kigwaru the cashier, grabs the Kshs. 3K, dashes out to pay the butcher 3K for the meat supplied.
The butcher rushes out to pay the goat farmer Kshs. 3K for supplies. The farmer settles his 3K debt at the Agro-feeds & Vet shop.
The Vet shopkeeper Sneaks out to pay Kshs. 3K to Kirathimo lodge & clears his debt for the rooms he used earlier that week.
As he happily leaves for the door, the Italian tourist returns downstairs & asks Mr. Kigwaru for his 3K, stating he didn't like any of the unkempt rooms & will try Meru town before dusk.
As he takes back the money he has no idea how he has set everyone free of debt but no money has been left circulating in town... But at least, debts have been settled.
The Big Question is.... How do you explain that about 5 debts of 3k each was cleared by only 3k which in fact was never spent? Is this Accounting? Is it Economics? Or is it an illusion of Commerce.
2020-07-30 14:26:32Post By: Sam Kim