im lost what he is going on about - all my assets are dollers or euros
Of course your lost ..... you think you know all about money but you actually know as much about that subject as you do about quantum physics. (BTW:it's Dollars not dollers)
No ..... all your assets are IOU's from your bank. It's not your money it belongs to the bank. Your accounts are a liability for the banks because they have a liability to repay you on demand (Unless you live in Cyprus) anything you owe as a debt is an asset to the bank. i.e. the banks assets are debts, the banks liabilities are their customers deposits. The banks have no liability to balance their assets because they created it from nothing in the first place as DEBT.
The problem is you just do not know how the monetary and banking system works at the fundamental level, But then nor do 99.9%+ of the population, so you are not alone. Neither are you stupid, you have just never bothered to find out about it. Go and have a chat with a senior banker, he/she will answer you if you ask the right question. "Where do the banks get their money from? " Don't ask counter staff they know no more than you do. You could visit the Bank of England web site; they have a good explanation 'Bulletin 2014 'Currency in the modern economy' although it may take you a while before the penny drops.
i think this says a lot
GOLD in metric tonnes
´EUtotal ´ 8,767
germany 3,381
IMF 2,814
france 2,451
italy 2,431
ECB 504
UK 310
leabnon 286
Gold is an asset, not a currency or money (although it can be used as either). It says nothing, but that it is a store of wealth over a long period of time. It will never devalue or deteriorate. 1 oz. of gold will always be worth 1 oz. of gold but the currency you use to buy it constantly devalues, i.e. currency is not a store of wealth, it only has a face value. It's purchasing power diminishes over time ..... gold has a constant value. This is why of the thousands of fiat currency there have been in history not one has survived . The £,$,€ will go the same way.
so if the EURO is a lot of rubbish why has it not dropped like the pound ?
It will! Mark my words. The more the banks create, the less the value (purchasing power) The fluctuating nominal value is set by traders in currency, they make billions out of the system where they decide the value of it ...... or do you never read financial news papers/web sites.
