Grower Has No Seed to Sell

Grower Has No Seed to Sell - Model #2

Several months later the grower realizes that a flood has wiped out his entire crop. He has no seed to sell.

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Grower	Dealer	Bank	Money/Deposits
Sells no corn seed. Receives nothing.	Buys no seed from grower.	Not involved.	No change in quantity of money.
Account Balance: $0.00.	Account Balance: $3,250.	Account Balance: $250.	Total Money: $3,500. Deposit Liabilities: $3,500

Grower

Dealer

Bank

Money/Deposits

Sells no corn seed. Receives nothing.

Buys no seed from grower.

Not involved.

No change in quantity of money.

Account Balance:
$0.00.

Account Balance:
$3,250.

Account Balance:
$250.

Total Money: $3,500.

Deposit Liabilities: $3,500

Note: Because no transaction occurs, balances do not change.

With no seed to sell the grower finds himself with no money to make his loan payment.

He faces the reality of total default...