With talk of the trillion
With talk of the trillion dollar coin being produced in the US to deal with their deficit i came across this bit of trivia. The existence of £1 million pound and £100 million notes.http://www.bbc.co.uk/news/magazine-21145103Apparently they are to provide backing to the Scottish and Northern Irish bank-notes. For every pound an authorised Scottish or Northern Irish bank wants to print in the form of its own notes, it has to deposit the equivalent amount in sterling with the Bank of England. If one of the banks failed as they nearly did a few years ago, the Scots notes would still hold its value.The high value notes are kept for accountancy purposes which seems to me indicates that even the Bank of England does not rely on strokes of a key-board or entries in a written ledger when it comes to the creation of money !!