A simple financial question

[dextrous]

It all started during the Stone Age.......
Ugg said to Ogg,,, " I've just solved all our problems ". "Really " said Ogg,,, " Yep " say's Ugg ,,,, " I've invented money" !!!!!!!!

If only he'd hit him over the head with a bigger club

Would have done, but couldn't afford one

 

[Trazor]

And eventually there is more money than backing.

Their has always been more "money" than backing, considerably more.

The value of any currency, is based on the confidence of others, that you can repay your debts.
Which is why this country is close to Bankruptcy, this country is still spending to much, with no coherent plan for debt reduction.

This last 12 years of Labour rule have been disastrous for this country, unfettered spending.

 

[imamartian]

but how would we pay back such a debt? would we drive up a van loaded with $100 bills? If so, isn't a banknote simply an IOU?
Isn't wealth only available as gold?

 

[Trazor]

Isn't wealth only available as gold?

The Gold standard was discarded entirely, about 40 years ago.

The true wealth of any country, is increased by exporting more than you import, thus bringing money into the country.
But for that you need a sound manufacturing economy, with cheap Labour, much like China.

Our Leaders thought the "funny" money generated by our Financial markets would create the wealth required.
A case of the Emperors clothes unfortunately.

 

[WDIK]

You know how just about every country on the planet is in debt? Can anyone enlighten me as to whom they are in debt to? There must be some big rich bloke somewhere who's got a lot of IOU's on his mantlepiece.

banks are in debt, because they are paper tigers, not much different to trading on the stockmarket.

the only banks who can honour their debt are the ones who hold the gold reserve, the rest can burn

 

[empip]

when we talk global money whether in electronic form or paper there is literally trillions and trillions of the stuff, so much i'm sure its not all accounted for, so whats stopping some unscrupulous souls from inventing some more after all a few million here and there wouldnt notice and eventually there is more money than backing, is that how we've got into the state we're in€

Surely they have been - haven't they made-off with the dosh for long periods, supposedly undetected ??

 

[dextrous]

Thank you all for your replies.

So, with the general election looming, what then is the solution and which party is offering, if not the best one, then the one which will do least harm?

 

[Infidel]

So, with the general election looming, what then is the solution and which party is offering, if not the best one, then the one which will do least harm?

All I can think is Vince Cable should be chancellor in anyones cabinet.

 

[dextrous]

So, with the general election looming, what then is the solution and which party is offering, if not the best one, then the one which will do least harm?

All I can think is Vince Cable should be chancellor in anyones cabinet.

He does sound the most astute. The trouble is that he may not be suited for the post. However, I think his talents shouldn't be wasted on opposition benches and that an advisary role should be provided.