Puzzle. Burn a ten dollar note.

[McDuck]

OK, here’s an interesting money idea to keep the old grey matter in shape.
You can be as creative as you want with the solution, but legality improves score.

How can a private person destroy money? I get a $20 dollar note and burn it?
No, nice try, but that just transfers the value back to the issuing body (by cancelling their promise to pay).

So just how would one go about destroying money?

[spaceman]

LOLZ.....transfer what back to who now??????.



What promise to pay is there with a RBNZ NZD $20 note exactly?????.......Dude live in the now NZ left the gold standard ages ago.....a $20 note is legal tender in NZ not a promise to pay......you having a flash back?????


Cheers
Spaceman

[McDuck]

lol, no not trolling.
It's good that you know enough to question the question.
Perhaps you would like to rephrase the question in your own terms?(while maintaining the spirit of the puzzle).

On second thoughts, that might be a bit hard.

What about this, take your twenty dollars to the NZ Mint and swap it for gold.
In that swap, have you destroyed the money?

[spaceman]

Still.....



What about this?????......I take my $20 to the pub and swap it for beer
In that swap, have I destroyed the money???????......I'd say that the answer is bleeding obvious, in that it'd be really really really really stupid if money was destroyed every time you used it.

Really not sure what you're trying to get at if you are serious.....perhaps you're under the illusion that we still have a specie/commodity based money system.......we do not. While in the olden days a $20 note issued by the government of the day was a promise to pay a certain amount of gold/silver this is no longer true, certainly in NZ and I'm pretty sure in every other country in the world too......live in the now


Cheers
Spaceman

[drelly]

Military Coup.

[speights boy]

What I want to know is; how did you start off with a $10 note and end up with a $20 note?
Perhaps it's a shell game .

With this and your other thread, I have a question.
Have you taken Kieran in as a flatmate recently?

[cube]

If the reserve bank says there is a money supply of around around $250 billion, of which $4.3 billion is in notes and coins, does McDuck's destruction of a note reduce the money supply or transfer the $20 from 'notes and coins' back in to the wider pool, allowing RBNZ to print a replacement without expanding the money supply?

(The M3 measure of money has gone from $216bn to $247bn in 2 years - that's 14% in the time GDP grew by 3.5% and expenditure by 8%)

[spaceman]

^ If a tree falls in the forest.........

So many angels dancing on the heads of pins......The destruction of the note only reduces the money supply if there is evidence that the money has been destroyed.....me destroying a note at home is completely different from the RBNZ (or whoever does it officially) destroying money.

If the RBNZ replace money they have destroyed they know that they aren't affecting the money supply.....if they replace money I told them I destroyed they are having to take my word for it.

(M3 is a measure of the MONEY SUPPLY.....not a measure of MONEY......broadly speaking M0 = money ......it is possible for the money supply to increase without the amount of money increasing)

Cheers
Spaceman

[VirtualT]

If the reserve bank says there is a money supply of around around $250 billion, of which $4.3 billion is in notes and coins, does McDuck's destruction of a note reduce the money supply or transfer the $20 from 'notes and coins' back in to the wider pool, allowing RBNZ to print a replacement without expanding the money supply?

(The M3 measure of money has gone from $216bn to $247bn in 2 years - that's 14% in the time GDP grew by 3.5% and expenditure by 8%)

Say hypothetically that I created a facebook page called "burn all your money on 1 December", I got 1 million likes and on the 1st December 1 million people all burned their paper money. Now RBNZ isn't on facebook so they didn't know about it, so the measure of electronic money was still the same but the amount of paper money in circulation was reduced by 1/3. Would the value of paper money increase since there was reduced supply? I would say not since people would just use other means to pay.

[spaceman]

^LOLZ......since nobody really "needs" paper money in the NZ in the 21st century, the value of paper money can't be seen from a normal supply/demand kind of equation (not that it ever really could).......case in point we are steadily using less and less cash and so the amount of cash in proportion to the amount of money is decreasing yet the value of cash isn't rising...... why would it????.........why would you even ask this question???

so the measure of electronic money was still the same but the amount of paper money in circulation was reduced by 1/3.

I think you're terribly confused here.....why would a measure of electronic money have anything at all to do with paper money......they aren't the same thing.

Money is money, but electronic money isn't paper money.......don't make me bust out a Venn Diagram

Cheers
Spaceman

[McDuck]

drelly said: Military Coup.

lol, nice. 10 out of 10 for creativity, minus two for legality.
8/10.

[McDuck]

What I want to know is; how did you start off with a $10 note and end up with a $20 note?
Perhaps it's a shell game .

With this and your other thread, I have a question.
Have you taken Kieran in as a flatmate recently?

The $10 went to a $20 due to the fractional reserve system...no...not really..it's just a random note ...any number will do.

[Keys]

Run for parliament.

Pass a law.

Devalue all money by 50%.

Your $20 has just been destroyed and will buy $10 worth of goods.

[Perry]

Or just ever-increase compliance and regulatory costs?
The effect is much the same, from an inflationary PoV.
Quant-a-something sneezing (or like expression) is
what the so-called 'central bankers' call it.

Spaceman and I have a difference of opinion over the
"money-as-currency" versus "e-money-as-something-else"
concept so keep questioning him/her for clarification.

See this thread. Or at least its dying stages. Unfortun-
ately (or maybe fortunately?) that thread is locked, so
no further posts can be added to it.

[Bob Kane]

How can a private person destroy money?

Pay off a debt?