So I've joined steemit and find myself posting my first blog. Please judge me gently, I'm still getting to grips with the whole thing. Anyway I digress...
What if, all of a sudden everyone decided to cash-in their I.O.U.'s, i.e. The Fiat currency most of us prize so highly?? The "I promise to pay the barer on demand the sum of..." What if indeed!!
If you have ever tried this by knocking on the bank of England's front door you will be told that they can exchange your £20 note for 2 £10 notes and your 2 £10 for 4 £5 notes. But then surly paper going to paper doesn't gain anything. Where is the precious metals,
the gold and silver that is meant to back up this made up, fake, false paper currency and how do I get what this fake money is meant to represent?? What is my £10 worth?? You promise to pay me ten pounds, but what actually is a pound??
Most of you reading this will understand the way western centralised banks work, with there fractional reserve banking(I'll make another post about this soon enough), but for those of you that still believe a "private company" I. E. the BoE, out to make profits for its mysterious share holders, has your best interest at heart then you are well and truly mistaken.