Credit Crunch

With all of us affected one way or another by the credit crunch I am reminded of the moment when, as a child, I lost confidence in the financial system. I read on my bank note – it was a special experience for me to hold a banknote in those days, even a 10/- note – “I promise to pay the bearer on demand the sum of one pound”. This promise was made by the chief cashier of the Bank of England on behalf of the Queen whose head appeared next door. This promise meant to me that if I went to the Bank of England and presented my pound note I would be given a pound of silver. For after all a pound of sterling is a pound weight of silver. Apparently, they would not honour their promise and the promise was a sham. From that sham the rest follows.