Scotland’s Currency – a Westminster Own Goal

by  on  in This makes me mad

I make no apologies for claiming the White Paper ahead of the 2014 Referendum was a piece of classic naivety.  Basically, we gave Westminster our game plan and in return they gave us nothing, well, OK, they did give us grief.

The worst mistake in my opinion is we kept the Scottish Question on Constitution in the political arena where it would be kick to death.  Again this was a blend of naivety and arrogance.

That’s the negative bit over, now on to the really stupid bit.  No, no on our part but this one is on Westminster.

THE OWN GOAL

One of their key criticisms, perhaps THE criticism was Scottish currency.  What would we use? it couldn’t be the pound.  I even did a piece on the Governance of the Bank of England and their Ruling body [the Currency Union lie].  At the time I thought I was being smart.  What I revealed was correct, irrelevant in context, but correct.  So cut me a slice of the naivety pie.

The Aye Community and especially the SNP scrambled to defend the currency issue.  However, the whole issue was bullshit and on the premise, ‘crap in crap out’, that is exactly what was generated.  Many Scottish voters did not buy it, thought the SNP were found wanting and did not realise that the source of the bullshit was Westminster WM.  This may have caused, or perhaps contributed to our failure in 2014.

WM love to repeat a winning formula.  The Empire always treated their colonies equally bad – the winning formula.  If and when we have a People’s Confirmatory Vote WM will pull out that old currency argument, so we, the people, must be ready to repel boarders.

Here’s how we do it:  There are no secrets just simple, up to the minutes factual monetarism.

  1.  Why did WM use the currency issue?  Because that is all they know, they run a FIAT economy and that is how they think.
  2. What is a FIAT Economy?  When you have a Central Bank you are able to ‘borrow’.  You are not actually borrowing, you tell the bank how much money to generate; from nothing.  It doesn’t exists.  They cannot back up up the money they have generated with anything tangible.  They simply pay back the principal sum plus interest to the bank with money, revenue if you will, taxes to be more precise.  Guess who pays the taxes? you and I.  That is a FIAT Economy.  Have you ever played Monopoly?  thought you didn’t understand a FIAT Economy.
  3. Who are the winners and losers? The generated or printed money or new money is never given to the people.  The Elite, the Corporates, the Donor Classes get the money of the faint hope of ‘trickle down’.  In fact it is never trickle down it is always siphoned off.
  4. How did WM kick an own goal? Ever since they raised the question of Scottish currency, many of us have kept this in focus trying to rebut, refute or counter their argument.  Keeping it is focus has enabled many of us to home in on the Westminster Monetary Con.  Here it is:  WM know that England is a FIAT Economy and since Scotland is just a ‘tag-along’ that consider Scotland is a FIAT Economy, actually a FIAT Economy by Proxy with a wee bit of pocket money.  Quite a mouthful for something that is 100% false.
  5. Is Scotland a FIAT economy?  Strictly speaking , Scotland is not a FIAT economy.  Actually, much worse.  The Pound Sterling is a FIAT currency.  The Government can instruct the Central Bank to generate money.  This money is not backed up by anything, other than a vast number of unwitting tax payers.  Now I said Scotland was much worse, well here’s why.  England borrows money that become the public debt and a proportion is assigned to Scotland, even though the money will most certainly be used to benefit England.  So if someone ever claims that England is subsidising Scotland this is one, just one example that exposes their ignorance.  Scotland subsidises England.  Oh, and if England decides to borrow from the IMF then it requires collateral.  Their collateral is English oil found off the coasts of Scotland?  On that basis, when Scotland breaks free England is in deep, very deep doo doo; a bit like buying a stolen car.  Our collateral was never theirs to use.  So, now you know why they will fight so hard to keep a hold over our assets.
  6. So what currency should Scotland adopt?  Actually, that is surprisingly simple.  Like many, I plumped for the ‘wee bobbee’.  During the great Brown ‘money con’ the SNP were scrambling about to answer a question when the problem was the question and not the answer.  Given Scotland’s assets and the new digital world it is obvious that we transition to [Bit Coin – all you need to know].  This can be a slow, steady transition holding on to whatever currency we fancy as we transition.  Nigeria is at 30% transition at present and growing.
  7. What is Bitcoin and what are the benefits?  I am on the foothills of the learning curve.  I have resisted thinking about it.  However, listening to one of the greatest and highly respected money experts, Max Keiser on RT the penny dropped and it goes like this:
      • The dollar and the pound are toast.  They have printed so much debt they will run out of years in the universe before they pay it down.
      • Neither currency is back up by anything.  Well, sadly, untrue.  These currencies are backed up by the GUN and they depend on disasters and conflict to keep the Elite and the Donor Classes in wealth.  The depend on trouble and when it gets too hot they shift their money into gold.  Gold is the safe haven of a dystopian economy.

By contrast:

      • Bit Coin is based on integrity, casting off dependency on banks, financial and political institutions and the Elite; it is autonomous and highly secure.  Nothing is completely secure, but Bit Coin is extremely secure and getting more and more so by the day.
      • Bit Coin is fast and reliable and much better value to people because there are no ‘margin’ players.  That is no bank fees or transaction charges, no banks as such, no money markets as such and no corruption as we know it.
      • Banks will be around for many years to come.  However, the clever money is on banks finding a role to make Bit Coin work, perhaps.  But only if they are smart? When the Internet threatened to destroy the travel agency business they put Internet terminals in their offices – pure genius.
      • The major banks recognise that Bit Coin is very new , very radical and very different from conventional banking as we have come to know it.  A principle concern is Governance.  Some may see that is the main challenge or perhaps failure of current banking.  Perhaps, but Bit Coin is evolving at a pace and if serious thinking on Governance is required then perhaps the country that was arguable a front runner in banking practices gets stuck in, perhaps they can bring some radical thinking to the party.  I have added a footnote that develops a little more thinking.  No doubt Bit Coin is not the best it can be, but it is on a journey and sometimes it is better to be the last winner than the first loser.
      • In terms of denomination, the smallest unit of a Bit Coin is the ‘Sat’ and today a Bit Coin is valued at £13,700.  One hundred million Sats make up 1 Bit Coin.  So, it is actually far more divisible than the current stuff.
      • A country that is absolutely awash with assets, making a new start, renowned for its integrity and fair play, a country like Scotland is a 100% fit for Bit Coin

Now here is the great thing.  Armed with this information, Scotland does not have to do anything specific.  We don’t set up new banks, we don’t buy up gold, we don’t ask for permission.

In fact it is so beautifully simple.  In many ways I trust the Scottish Government.  Many if not most Scots trust the Scottish Government.  If the Government advised the citizens to move slowly and steadily into Bit Coins and encouraged traders to move to Bit Coin trading and retail then over time, and probably quicker than we imaging we have:

SOLVED THE CURRENCY ISSUE FOR SCOTLAND, and

THERE IS ABSOLUTELY NOTHING ANYONE CAN DO ABOUT IT

Footnote:  Many years banking was really just a Saving Bank.  You could even be charged for saving money and interest was either nothing of a pittance.  Banking was just a safer way to keep you money than under a floor board.  In 1950 Credit Cards came along, such as Diners Card in America.  Our parents spoke contemptuously of the American principal of credit or the ‘live now pay later’ generation.  Today, banks are really just Credit Houses.  Saving in a bank has almost become a thing of the past and the contemporary model is to get your salary paid into the bank that transfers payments to your various credit cards that become your main method of paying for just about anything and everything.  People’s lives are ruined by debt, overspend and over borrowing.  This is a modern problem predicated on the Credit House.  There was a time when it was virtually impossible to overspend, because the banks would simply not allow or facilitate it.  Even you mortgage was a strict qualification exercise based on proven ability to afford as judged by the banks.  

The Bit Coin can turn the clock, or part of the clock back.  You can only spend what you have – YOU CAN ONLY SPEND WHAT YOU HAVE!

Banks still exist but they revert to their previous form of saving and borrowing.  Credit can be overhauled completed to incorporate the best of what we have today and remove the bad bits.  Banks can only loan the money they get in and business growth is governed by society’s prudence.

Some may think this idea is almost Victorian.  But contrast this with the FIAT banks, the FIAT economy.  OK, it has not collapsed yet, actually some have, but in the US and UK the economy is a hop skip and a jump from irretrievable bankruptcy. They stay fluid using self generated money to secure weaponry.  As we all know, THE RICHEST MAN IN THE WORLD IS THE ONE WITH THE BIGGEST GUN, until someone comes along with a bigger one.