Money lost in sofas, burnt etc

[HOGEPH]

Having just read the thread on the new $100 bill in News, Politics and Economics, I was wondering how governments account for all the lost money out of circulation, such as hidden in mattresses, buried, destroyed etc.

It follows there must be more money out there than the governments have in gold reserves to back it up.

[randlemarcus]

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

Egad, Cuthbert! We seem to have arrived at some point before 1931!

[Stevenj214]

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

We left the 'gold standard' a long time ago anyway. Our money is not backed by gold, it's backed by pure faith.

[HOGEPH]

Stevenj214 said:

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

We left the 'gold standard' a long time ago anyway. Our money is not backed by gold, it's backed by pure faith.

Like religion then?

[Incorrigible]

Money is real

I believe that, so you can't argue with me

[Stevenj214]

HOGEPH said:

Stevenj214 said:

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

We left the 'gold standard' a long time ago anyway. Our money is not backed by gold, it's backed by pure faith.

Like religion then?

Not quite. Religion is blind faith. Untestable.

Faith in a currency is tested everytime you successfully use it in a transaction.

[JamesM]

Stevenj214 said:

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

We left the 'gold standard' a long time ago anyway. Our money is not backed by gold, it's backed by pure faith.

That's what I tried to tell the old bill. Apparently making your own money is illegal.

[maser_spyder]

JamesM said:

Stevenj214 said:

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

We left the 'gold standard' a long time ago anyway. Our money is not backed by gold, it's backed by pure faith.

That's what I tried to tell the old bill. Apparently making your own money is illegal.

He said backed by faith, not backed by HP technology.

[maser_spyder]

Stevenj214 said:

HOGEPH said:

Stevenj214 said:

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

We left the 'gold standard' a long time ago anyway. Our money is not backed by gold, it's backed by pure faith.

Like religion then?

Not quite. Religion is blind faith. Untestable.

Faith in a currency is tested everytime you successfully use it in a transaction.

Faith in currency sounds interesting.

The next time I spend a tenner, I might read the cashier the spiel;

"By passing you this note, I hereby declare to promise to pay the bearer the sum of ten pounds sterling".

Not sure what response I would get in the Co-Op though....

[TheCarpetCleaner]

maser_spyder said:

Not sure what response I would get in the Co-Op though....

I would imagine

"Yeah mate, init. Represent. Respect. Allow sterling. High school musical free is wikkid"

Well thats the usual standard from morrisons in Bracknell anyway

[chr15b]

Watch 'money as debt' on YouTube, explians a lot..

[Stevenj214]

JamesM said:

Stevenj214 said:

HOGEPH said:

It follows there must be more money out there than the governments have in gold reserves to back it up.

We left the 'gold standard' a long time ago anyway. Our money is not backed by gold, it's backed by pure faith.

That's what I tried to tell the old bill. Apparently making your own money is illegal.

I don't think making money is illegal - it's making Sterling that's illegal.

There's a district in England somewhere which has it's own local currency.

I'm sure you would be quite free to make your 'own' money. I'm not quite so sure that many people/institutions would have 'faith' in it!

[Stevenj214]

maser_spyder said:

Faith in currency sounds interesting.

The next time I spend a tenner, I might read the cashier the spiel;

"By passing you this note, I hereby declare to promise to pay the bearer the sum of ten pounds sterling".

Not sure what response I would get in the Co-Op though....

Ah, but it isn't you that is promising to pay, it's the bank. However all the bank is promising to pay is 10 £1 coins - which themselves are not 'backed' by gold. So again we return to complete faith in the system.

[Devilstreak]

anonymous said:

[redacted]

And in the seat runners. I've got pound coins galore trapped in mine.

[maser_spyder]

Stevenj214 said:

maser_spyder said:

Faith in currency sounds interesting.

The next time I spend a tenner, I might read the cashier the spiel;

"By passing you this note, I hereby declare to promise to pay the bearer the sum of ten pounds sterling".

Not sure what response I would get in the Co-Op though....

Ah, but it isn't you that is promising to pay, it's the bank. However all the bank is promising to pay is 10 £1 coins - which themselves are not 'backed' by gold. So again we return to complete faith in the system.

So in effect, I have some control over what the bank promises to pay.

Doesn't seem like that recently.

Perhaps the gold has run out.

[Stevenj214]

maser_spyder said:

Stevenj214 said:

maser_spyder said:

Faith in currency sounds interesting.

The next time I spend a tenner, I might read the cashier the spiel;

"By passing you this note, I hereby declare to promise to pay the bearer the sum of ten pounds sterling".

Not sure what response I would get in the Co-Op though....

Ah, but it isn't you that is promising to pay, it's the bank. However all the bank is promising to pay is 10 £1 coins - which themselves are not 'backed' by gold. So again we return to complete faith in the system.

So in effect, I have some control over what the bank promises to pay.

In what sense do you mean?

[randlemarcus]

maser_spyder said:

Stevenj214 said:

maser_spyder said:

Faith in currency sounds interesting.

The next time I spend a tenner, I might read the cashier the spiel;

"By passing you this note, I hereby declare to promise to pay the bearer the sum of ten pounds sterling".

Not sure what response I would get in the Co-Op though....

Ah, but it isn't you that is promising to pay, it's the bank. However all the bank is promising to pay is 10 £1 coins - which themselves are not 'backed' by gold. So again we return to complete faith in the system.

So in effect, I have some control over what the bank promises to pay.

Doesn't seem like that recently.

Perhaps the gold has run out.

You know that gold that Winky sold at the bottom of the market? Its that gold.

[maser_spyder]

randlemarcus said:

maser_spyder said:

Stevenj214 said:

maser_spyder said:

Faith in currency sounds interesting.

The next time I spend a tenner, I might read the cashier the spiel;

"By passing you this note, I hereby declare to promise to pay the bearer the sum of ten pounds sterling".

Not sure what response I would get in the Co-Op though....

Ah, but it isn't you that is promising to pay, it's the bank. However all the bank is promising to pay is 10 £1 coins - which themselves are not 'backed' by gold. So again we return to complete faith in the system.

So in effect, I have some control over what the bank promises to pay.

Doesn't seem like that recently.

Perhaps the gold has run out.

You know that gold that Winky sold at the bottom of the market? Its that gold.

Ah, that makes sense now.

I wondered why the new ten pound notes were smaller. That explains it.

[MK4 Slowride]

anonymous said:

[redacted]

Every part exchange gets rummaged for change and anything else worth keeping that's not wanted by the customer. It's a very bad idea to put £1 coins in the coffee machiene for a 20p coffee as when it dispenses your change it's like winning on the bandits but your weighed down with half a tonne of 1's & 2's.