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    Most major transactions (anything over a tenner!) that I make are done so by plastic.

    If everyone in the UK went to the bank tomorrow and tried to withdaw the entire balance of their account in notes and coins would there be enough currency in circulation to let this happen?
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    (Original post by Mark_KK)
    Most major transactions (anything over a tenner!) that I make are done so by plastic.

    If everyone in the UK went to the bank tomorrow and tried to withdaw the entire balance of their account in notes and coins would there be enough currency in circulation to let this happen?
    No
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    I thought not. Does anyone know roughly how much physical currency there is in circulation?
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    (Original post by Mark_KK)
    Most major transactions (anything over a tenner!) that I make are done so by plastic.

    If everyone in the UK went to the bank tomorrow and tried to withdaw the entire balance of their account in notes and coins would there be enough currency in circulation to let this happen?
    No, most banks are only open for a couple of hours on a Saturday

    Modern society relies on debt to function, unfortunately we've become so wrapped up in it that we'll be due a financial melt-down within the next couple of decades.
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    (Original post by timeofyourlife)
    No, most banks are only open for a couple of hours on a Saturday

    Modern society relies on debt to function, unfortunately we've become so wrapped up in it that we'll be due a financial melt-down within the next couple of decades.
    I knew someone would bring up the Saturday issue .

    Is the UK's credit problem as bad as it is being made out? Recently it has been though that it is not nearly as bad as the tabloid press say.
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    (Original post by Mark_KK)
    I knew someone would bring up the Saturday issue .

    Is the UK's credit problem as bad as it is being made out? Recently it has been though that it is not nearly as bad as the tabloid press say.
    Well we're living on borrowed time, but thankfully Gordon Brown is very good at his job and the economy is healthy. More worrying though is the steep increase in house prices, interest rates have gone up to slow it down which is going to lead to vast amounts of debt through increased mortgages.
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    I blame reckless lending. I have taken credit out on two occasions in the last two years and both times I have not been asked about my financial details.

    I am a homeowner and have had a loan in the past that I repaid, I also have a credit card with a 5,000 credit limit. I have racked this up to £2K in the past but repaid it after many months of having to pay it off bit by bit.

    Last week I signed up for a mobile phone contract and was accepted no problems.

    The crazy thing is...I AM UNEMPLOYED (well studying full time for A-Level exams). I am 23, live with my parents, have no income yet people seem to want to throw money at me!!!

    At one stage my personal unsecured debt was up to £4,000. Luckily I managed to get it sorted before it became a major issue although at the time I *nearly* went under in a sea of debt.

    People think that they can spend, spend, spend and pay later, I certainly did. This whole credit culture is a timebomb and needs sorting.
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    (Original post by Mark_KK)
    I blame reckless lending. I have taken credit out on two occasions in the last two years and both times I have not been asked about my financial details.

    I am a homeowner and have had a loan in the past that I repaid, I also have a credit card with a 5,000 credit limit. I have racked this up to £2K in the past but repaid it after many months of having to pay it off bit by bit.

    Last week I signed up for a mobile phone contract and was accepted no problems.

    The crazy thing is...I AM UNEMPLOYED (well studying full time for A-Level exams). I am 23, live with my parents, have no income yet people seem to want to throw money at me!!!

    At one stage my personal unsecured debt was up to £4,000. Luckily I managed to get it sorted before it became a major issue although at the time I *nearly* went under in a sea of debt.

    People think that they can spend, spend, spend and pay later, I certainly did. This whole credit culture is a timebomb and needs sorting.
    I have a credit card, but am very self conscious about spending on it. I have a £700 limit on, and whenever I go shopping and use it, I get home and immediately log onto my banking and pay it off. lol,
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    (Original post by Mark_KK)
    this whole credit culture is a timebomb and needs sorting.
    I know, it's ridiculous, I'm a student and have a gold barclaycard - it shouldn't be allowed to happen. Credit limits are just too tempting.
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    I think there is a limit of withdrawing £200 a day isn't there?
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    (Original post by Mark_KK)
    I thought not. Does anyone know roughly how much physical currency there is in circulation?
    Someone once quoted the figure of 14% of the total amount of money in circulation at a bank must be liquid cash. I don't know if a)that's right or b)how much the total is.
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    There is also the very long term apocalyptic view that the world's resources cannot sustain the rate of growth the world's economies are going at. We could do with recession apparently. Still some way off but I fear this hypothesis could hold in our lifetime.
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    (Original post by timeofyourlife)
    Well we're living on borrowed time, but thankfully Gordon Brown is very good at his job and the economy is healthy.

    I disagree.

    Labour inherited a healthy economy from the Tories. Labour has been riding the wave and taking credit for the sound long-term economic policies of the Tories.

    Labour's increased investment in public services has only been possible through borrowing. Labour's last budget was typical of a pre-election budget - increase funding to public services so everything *looks* healthy to the non-too-inquisitive public while not increasing taxes. How is this possible? Through borrowing of course. It will only be after an election that the full effects of our budget defecit will become apparent.

    Labour has abandoned any principled long-term approach to maintaining and developing a healthy economy. It has instead employed short-term policies that it believes will win votes, while the effects in the longer term will be highly detrimental to our economy.

    It is in fact Gordon Brown that is putting our economy on borrowed time, while making it look as though he is doing everything in his power to successfully avoid such a scenario. :mad:
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    It used to be that for all money in criculation the bank of england would hold at least the equivalent value in gold. In theory you could have taken your £10 to the bank and requsted it's value in gold. Today that is unfeasible and that law/rule stopped a long while ago.
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    (Original post by muncrun)
    I disagree.

    Labour inherited a healthy economy from the Tories. Labour has been riding the wave and taking credit for the sound long-term economic policies of the Tories.

    Labour's increased investment in public services has only been possible through borrowing. Labour's last budget was typical of a pre-election budget - increase funding to public services so everything *looks* healthy to the non-too-inquisitive public while not increasing taxes. How is this possible? Through borrowing of course. It will only be after an election that the full effects of our budget defecit will become apparent.

    Labour has abandoned any principled long-term approach to maintaining and developing a healthy economy. It has instead employed short-term policies that it believes will win votes, while the effects in the longer term will be highly detrimental to our economy.

    It is in fact Gordon Brown that is putting our economy on borrowed time, while making it look as though he is doing everything in his power to successfully avoid such a scenario. :mad:
    That sounds like an article from the Daily Mail.
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    Arn't banks open from 9:00 - 4:00 now on saturdays? I know my local branch is.
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    Originally Posted by Golden Maverick
    It used to be that for all money in criculation the bank of england would hold at least the equivalent value in gold. In theory you could have taken your £10 to the bank and requsted it's value in gold. Today that is unfeasible and that law/rule stopped a long while ago.

    That was stopped when some crazy man went into the Bank of England and Demanded his gold! hehe

    Originally Posted by Mark_KK
    I thought not. Does anyone know roughly how much physical currency there is in circulation?
    It used to be part of monetry policy to change the amount of money in circulation to control Aggererate Demand, or spending, in the Economy. Howeever, it never really worked, because it just increased the speed of the transactions. As businesses paid into the banks more frequently so that consumers could withdrraw more, and thus spend more frequently.

    These days we use intrest rates... far more effective.

    Also, the british economy is in nearly a Trillion pounds of debt (1000 1000 million, or 1000 billion)

    Yes, Gordon Brown has created a stable economy, and a very successfull one at that, with low unemployment, and inflastion. As well as high economic growth. However, it is all funded by out growing debt.
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    (Original post by Mark_KK)
    Most major transactions (anything over a tenner!) that I make are done so by plastic.

    If everyone in the UK went to the bank tomorrow and tried to withdaw the entire balance of their account in notes and coins would there be enough currency in circulation to let this happen?
    I doubt it.
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    (Original post by Golden Maverick)
    It used to be that for all money in criculation the bank of england would hold at least the equivalent value in gold. In theory you could have taken your £10 to the bank and requsted it's value in gold. Today that is unfeasible and that law/rule stopped a long while ago.
    Britain left the gold standard for good in 1931, for economic reasons.

    The answer to the original question is no. Legel tender makes up about 4 % of a state's money.
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    (Original post by Lord Huntroyde)
    That sounds like an article from the Daily Mail.
    But it's not. It's true.
 
 
 
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