The money of course does not exist as we know it in £'s. It is all a paper exercise. The problem arises when the Government (Bank of England) has to show they have the gold reserves to backup the amount of money in circulation to others that they owe money to. The UK is mortgaged to the hilt at the moment and if our mortgage holders decide they want their money back we are done for.

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ahh - wondered whos buying all the gold ! - what really riles me is if you go to a money lender and default on your payment you loose everything - so thats your choice - so who told the government to borrow it - i didnt !!!

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Well I am sorry but you did if you ever voted for a candidate in any election in UK you voted to allow them to borrow money ever since 1948. The problem is that we have never repaid any of the money. As for gold selling the last labour government sold most of our reserves at a very low price to back up their social programmes. Very worthy they were but much to ambitious.

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Your former PM deliberately screwed up superannuation investements to prevent the retirement of any further Baby Boomers.

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I wanna know why if the banks are so broke how are they able to build so many new ones?!

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Yes, like PNC, pUnk bank.

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