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Old Nov 15, 2008 | 01:40 PM
  #5  
Iain Mac's Avatar
Iain Mac
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Joined: Jun 2003
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From: Scotland
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The money in your pocket has no intrinsic value. The bit that is worth something is the "promise to pay the bearer" which used to be backed by cash and gold deposits at the Bank of England.

Then the rules were loosened and the banks didn't have to put the same deposits into the BoE so started borrowing from each other and here we are now.
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