Quote:
Originally Posted by Neil
My 10 year old asked me a simple question I could not answer yesterday.
"If the Government have no money why don't they just print some more"
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Not my area either but I think it's to do with dilution of the value although the Pounds pretty devalued anyway. As BG said what is written on the bank notes basically equates to the Government issuing an I.O.U./credit note 5,10,20,50 pound notes instead of the equivalent in Gold to the bearer (you with your quids) for their I.O.U./Credit note (Monetary notes). Theoretically the amount of Gold should equate to the Quid note/coins issued to the public, so issuing new notes devalues the worth of the held Gold. I think
