Stupid question about money ..

[Telstra]

say the US gives $1 billion cash to Fiji (small country in Pacific).

Fiji got $1 billion cash and they are rich. A few days later the printed cash ($1 billion) got burnt to ashes by accident and now Fiji is poor again.


Isn't the US still owe Fiji $1 billion? (as the gift from the US still stands).

 

[gsdx]

If I buy you an iPod for your birthday and you drop it down the toilet and it doesn't work anymore, do I have to buy you another iPod?

 

[Telstra]

^ but paper money can be printed cheaply.

is that mean the US gains $1 billion dollars because the missing $1 billion will never be used and the US can replace that billion easily by printing it which doesn't cost much.


* ipod can't be produced easily unlike paper money.

 

[Telstra]

ok a better example is a cheque of $1 billion from the US , Fiji got the cheque but burnt by accident.

Isn't the US still got $1 billion cheque (only a piece of paper) ?

 

[Simon1978]

I'm not sure myself.

Are you talking about a country's monetary policies? Amount of money in circulation and what affect it has on inflation?

Please elaborate.

 

[gsdx]

^ but paper money can be printed cheaply.

You're right. It is a stupid question.

 

[Puzuzzu]

you guys are assholes, i bet if i asked you a complicated math problem you wouldn't be able to answer it. we all live and learn. he didn't know, so what? if you have nothing good to tell him gtfo of this thread.

edit: my mistake, i thought you were being mean to him, and i was thinking of another thread he made.

 

[Puzuzzu]

Wow....I may not have learned anything about world economics I didn't already know... But I did learn some interesting things about two people today...

you better not be referring to me, unless you want me to go all dramatic ass on you.

 

[RationalLunacy]

The U.S. has been off the gold standard for decades. Our money is worthless, anyway.

I'm old enough to remember this. Nyah!

 

[RationalLunacy]

I'm told you were one of the original brain stormers for the thing we now call "dirt" as well.

No. That was my granddaddy. I was on the "wheel" committee.

 

[Puzuzzu]

Sweety, calm down. the post was not directed at you. only certain poster engaging in character attacks.

I was kidding

 

[Telstra]

I'm not sure myself.

Are you talking about a country's monetary policies? Amount of money in circulation and what affect it has on inflation?

Please elaborate.

i prefer your opinions because u know more about stocks and money.

Anyway what i'm saying is $1 billion cash notes in Fiji hands, say put in a warehouse then got burnt to dust. I was thinking the money is only paper therefore the US still got that money right?

 

[Telstra]

you don't understand the question so who is silly? u know money for dummys book.

 

[Telstra]

I think the big picture you're missing from the responses to this thread is that it doesn't work like that. Something like that would be handled electronically.

Whatever you are trying to get through to us in your question...isn't.

well let say in the old days with no electronic transfer. Cash notes only

 

[Telstra]

You're right. It is a stupid question.

Seriously $1 billion of ipods are MUCH harder to produce than $1 billions of cash notes.

 

[bankside]

They reprint the money and give it to you.

See here:

http://www.bep.treas.gov/section.cfm/8/39

Money is good even if mutilated.
From the site:

Do you know what to do to replace badly damaged currency?
The Department of the Treasury, Bureau of Engraving and Printing, redeems partially destroyed or badly damaged currency as a free public service.
Every year the U.S. Treasury handles approximately 30,000 claims and redeems mutilated currency valued at over $30 million.
The Office of Financial Management/Mutilated Currency Division, located in the Bureau of Engraving and Printing, uses experts to examine mutilated currency and will approve the issuance of a Treasury check for the value of the currency determined to be redeemable.

 

[Telstra]

They reprint the money and give it to you.

See here:

http://www.bep.treas.gov/section.cfm/8/39

Money is good even if mutilated.
From the site:

Do you know what to do to replace badly damaged currency?
The Department of the Treasury, Bureau of Engraving and Printing, redeems partially destroyed or badly damaged currency as a free public service.
Every year the U.S. Treasury handles approximately 30,000 claims and redeems mutilated currency valued at over $30 million.
The Office of Financial Management/Mutilated Currency Division, located in the Bureau of Engraving and Printing, uses experts to examine mutilated currency and will approve the issuance of a Treasury check for the value of the currency determined to be redeemable.

from your link, if Fiji or US can prove 100% that the money got burnt, the US would reprint the money and give it to Fiji again. That make sense.

 

[Telstra]

But your example was burnt to dust. Which means there was no evidence it was the billion dollars in the first place.

oh ok, for the sake of the argument, lets say the US/Fiji can prove 100% that the cash notes got destroyed.

 

[Telstra]

^ thats what i want to hear. Problems solved.








*in some mysterious ways i got the billions. LOL