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Could such a hoard be confiscated by a government?

Insofar as we are talking about financial instruments, this could only be done by or with the (at least implicit) consent of the issuing country or the country of residence of the debtor. Meaning that...

What sort of economic oddity would that be, a government in possession of a financial pile many times greater than the size of the world's largest economy?

... cannot happen. The (say) US government never has any US$, in the same way the referee at a football field never has any points: A US$ exists only when someone who is not the US owns it and the US government does not dispute the ownership.

The countries in which the banks are located could, however, erase this money from existence, by the simple expedient of blowing up the banks.

I wonder what would happen if that money simply disappeared?  Erased from the books?  Gone forever?

The only impact of any consequence would be that some of the 1 % would become unable to buy quite as many politicians as they currently do.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Apr 4th, 2013 at 03:39:04 PM EST

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