i promise to pay the bearer on demand the sum of...

Rainmaker_uk

Radiantsoul wrote: »

No.
The fact that every note in circulation does not have an arbitrary quantity of a precious metal locked away somewhere to secure its value does not bother me unduly.

I suppose that if it were the case I could take my money and leave the country. But the risk would be that as a society would over invest in gold and gold production.

I think you are missing the point - money is in reality worthless and is only based upon confidence.

Whether you money is backed by gold or indeed you use it to purchase an asset (revenue generating) potentially the least safe place for it is keeping it as savings in a bank.

ninky_2

there have been several answers but two or three consistent ones....

1. that they would change the note for coins
2.that they would change the note for a note of the same value.
3.or that they would change the note for notes of different values.

why the difference of opinion? and who is right?

Radiantsoul

Rainmaker_uk wrote: »

I think you are missing the point - money is in reality worthless and is only based upon confidence.

Whether you money is backed by gold or indeed you use it to purchase an asset (revenue generating) potentially the least safe place for it is keeping it as savings in a bank.

Money isn't worthless. Or no more worthless than anything else. And whilst it may have value only based on confidence the same is true of gold.

And in reality the bank is a safe to store money.

Radiantsoul

ninky wrote: »

there have been several answers but two or three consistent ones....

1. that they would change the note for coins
2.that they would change the note for a note of the same value.
3.or that they would change the note for notes of different values.

why the difference of opinion? and who is right?

All of the above.

ninky_2

nicko33 wrote: »

does the Bank of England have a FAQ page about banknotes which might be found by popular web searching sites?

sort of peeters out after 1921;)
http://www.bankofengland.co.uk/banknotes/about/history.htm

ninky_2

Radiantsoul wrote: »

Money isn't worthless. Or no more worthless than anything else. And whilst it may have value only based on confidence the same is true of gold.

And in reality the bank is a safe to store money.

actually i would argue it is more worthless than other things. for example human life. you can't actually buy another one so i'd say that is worth more than all the money in the world. no?

Really2

ninky wrote: »

what would actually happen if you wandered into the bank of england with some bank notes

Merv would do a lap dance, duration dependent on the notes used.

He has got an elephant shaped thong should you require change. (mental picture, not a good one I admit)

Fiddlestick

ninky wrote: »

there have been several answers but two or three consistent ones....

1. that they would change the note for coins
2.that they would change the note for a note of the same value.
3.or that they would change the note for notes of different values.

A bank note is a promissory note.

They can only fulfill that promise by paying you the mentioned sum in Pounds Sterling.

They cannot give you a note of the same value or notes of different value as you will STILL be left with a promissory note.

The only way for the Bank to fulfill the promise is by issuing you with Pounds Sterling.

You *will* be given coinage if you present the note for payment.

nicko33

ninky wrote: »

sort of peeters out after 1921;)
http://www.bankofengland.co.uk/banknotes/about/history.htm

tut. must brush up your searching skills
try http://www.bankofengland.co.uk/banknotes/about/faqs.htm#2

"Exchange into gold is no longer possible and Bank of England notes can only be exchanged for other Bank of England notes of the same face value."

Generali

ninky wrote: »

:rotfl:are we all mad?

I'm not. The Doctors gave me a certificate declaring me sane when I left the nice hospital.

Money like any other asset is worth what someone else will give you for it. Lots of people in internet land will tell you that there is some intrinsic value to land or gold or silver or cigarettes or shells, all of which have been used as money down the ages. There isn't. Money is just a nice easy shorthand to allow people to exchange one thing for another easily.