What does "Destroy this money" mean?

Discussion in 'Financial campaigns and consultations' started by Frager, 4 Nov 2014.

  1. Frager

    Frager Registered User

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    I don't know what forum to post this question on. Perhaps someone will be kind enough to put it in the correct place.

    On the radio programme Today with Sean O’Rourke this morning Diarmuid O’Flynn speaking of Promissory Note Bonds said ‘Mr Honohan on a bond that he sells will take in €500 million and will destroy that money’.

    Could someone explain to me what he means by ‘destroy that money’.

    Thanks
     
  2. michaelm

    michaelm Frequent Poster

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    This is definitely simplistic and probably wildly inaccurate so I stand to be corrected if not admonished . .

    . . but as far a I remember the Irish Central Bank created money (€30 billion was it?) out of thin air (a few mouse clicks I suppose) which it made available to the Irish banking system. The EU was not happy, although they were happy that their banks didn't lose out despite risky loans to Irish banks. The Irish government agreed with the EU that the Irish taxpayer would repay this to the Irish Central Bank in tranches and a few mouse clicks after each it will disappear (or be destroyed) . . given that we took one of the team (EU banking system) we should have been allowed to (insisted on) repaying same over maybe 100 years . .

    . . the interest rate would be kinda irrelevant as we would be paying that to ourselves.
     
  3. Frager

    Frager Registered User

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    Was this money actually printed or did it just exist in some spreadsheet?
     
  4. michaelm

    michaelm Frequent Poster

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    No printing, just recycled electrons.
     
  5. elcato

    elcato Moderator

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    So must have been in negative equity then ? boom boom !
     
  6. runner

    runner Frequent Poster

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    At last I understand!
    We have a quantum theory of economics here.
    It's whereabouts are uncertain and we can't predict the location and speed of where the money went!