Re: I just created 100 pennies.. and loaned them out, you owe me 101 pennies…..

I just created 100 pennies and I loaned them out to you + interest How is it possible for you to pay me the 101 pennies you now legally owe me if only 100 pennies are in circulation?

This puzzle is intended to make a point, but it doesn't because the solution is so simple:

1. I return the 100 pennies to you.
2. I buy one penny from you. How there are only 100 penny? you can only loan them
If you claim that the 100 pennies are the only form of money, then the puzzle is ridiculous because it isn't money when only one person holds it. Either way, I can still trade for it or use some form of money.
3. I give you the one penny interest.

Here is another solution:

1. I loan the 100 pennies back to you + interest. why would the lender accept such a stupid idea? he didn't win anything, it ain't charity.
Maybe he needs the pennies. Maybe the situation has changed making it advantageous to borrow the pennies back. For example, he can use the 100 pennies to gain 2 pennies worth of value and that would be better than the 1 penny he gets from me.
2. The loans are the same, so we agree to cancel them.

nice try. but there is no escape, it's evil.

nice try, but not good enough.

you don't understand the word legal tender note. btw the poster said there was only 100 pennie. but you can extend it to full money supply + interest, where do come the interest? by the new freshly bills printed to the connected ones (first banks, then their trading parteners, then the rest) meaning that you lower on the chain.

However and I want that to be clear, I know it ain't the best post but he will do, I am sure that the 1000 best hedgies, traders and others mps, would be almost the same on sea shell currency... (a few the losers would be unable to survive, but those don't trade, they just pimp and everyone know who are the real MPs).

Quote from: CtrlAltBernanke420 on February 19, 2015, 09:50:31 PM

I just created 100 pennies and I loaned them out to you + interest How is it possible for you to pay me the 101 pennies you now legally owe me if only 100 pennies are in circulation?

frankly I understood it as a man on his island, a theoretical question, otherwise with your approach the answer is quite simple : money counterfeiting, expect a raid by the police, so you will never be able to create 100 penny.