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Posts tagged “bonds

Finance | money to burn

Money - Seeing the future

Burning money

If you burn paper money, do you destroy it? The answer is technically, no. The value of money is all about supply and demand and so if you burn a 50 pounds note, a 50 dollar note or a 50 Euro note; you are decreasing demand and making all the rest of the  money in circulation more valuable. You may be destroying one note, but you aren’t destroying overall value! The Bank of England is currently doing the opposite, creating rather than destroying money but in doing so they are increasing demand and so making the money already in circulation less valuable. (more…)

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Finance | What would you do?

Food and drink

Lotto

The slogan for this week’s national lottery draw here in the UK is – what would you do? What would you do if you won £4,000,000 on the lottery? Would you buy a lots of food and drinks and have  a party to celebrate? This week the British government again pumped 50 billion into the economy, affectively devaluing money again. This will probably cause inflation over the next year of around 5% devaluing £4,000,000 by around £200,000! Michael Winner once described having £3,000,000 as being comfortable; now we find with £4,000,000 you lose £4,000 a week as your money is devalued! (more…)