Scottish Monetary Reform
and the Campaign for a
Clean Scottish Currency
The Monetary Policy pages of the draft CONSTITUTION CONSULTATION
The Monetary Policy website of the Scottish Constitution Consultation
Independence is about withdrawing from an unsatisfactory system of government in Westminster - the home of Misery Economics, and moving on to something more appropriate to Scotland - Sunshine Economics. The Constitutional role of Currency & Finance in achieving this is very significant and predicated upon the State recovering its authority over the National Currency.
If States truly control monetary policy then whatever is socially desirable & physically possible would also be financially possible.
Yet public investment is still constrained by the State borrowing credit from its own banking system on the collateral of the taxpayer. The National Debt can neither be serviced nor repaid. It is the device of financial capitalism to control our democratic institutions.
Independence offers the opportunity of restoring financial sovereignty to Scotland.
Today we live in a world with two kinds of money -
First, the thousands which are our monthly incomes which we exchange for goods and services in the real economy; second the trillions washing around financial markets enriching the 1% but creating inflation, debt and financial crises for the 99%.
We understand the first - a priceless social and economic asset, but not the second - a liability causing inflation and instability.
We spend debits and earn credits which are recorded by robots in our ‘bank’ accounts. This payment system could be easily shadowed by the Central Bank and thus no longer vulnerable to bank failure or commercial pressures.
The issue of the National Currency would revert exclusively to the Treasury – no longer issued as unlimited debt by banking corporations.
International mega banks are not for Scotland, but smaller institutions accepting our deposits, savings and pension contributions for relending as consumer credit and mortgages will have every encouragement.
National Debt will become an historic anomaly.
“Moving On” unveils how the new Scottish Currency deals with these anomalies and provides for an entirely new approach to the financing of public investment and personal pensions.
Start by putting aside all your preconceptions about national debt, interest rates, financial markets and scaremongering politicians - none of us were born shackled to these man-made devices. They are simply not relevant when starting from scratch.
The book “Moving On” is set in a newly independent Scotland starting out free from the baggage of such vested interest by adopting its own currency and bank regulation. It examines the relationship of domestic and international trade to currency and monetary policy. The new Central Bank fixes domestic interest and foreign exchange rates, and the National currency is no longer available to speculative money markets.
The new Scots pound does not start life as a debt to the banking system. It enters circulation debt free and initially as loans to the private banks until such time as normal interest-bearing deposits match the natural demand for lending.
The present practice of the State borrowing from the private banks ceases. Personal and commercial borrowing is funded from savings, private investment and pension funds.
The "Moving On" page gives a brief background to the book and provides two specimen chapters – the first by Andy Anderson, a graduate economist and trade union officer, on the alternative economic principles of independence and the second by co- author Ronnie Morrison, an accountant with business interests in manufacturing and investment banking. Here is all you need to know about the transition from Sterling, public investment, pensions and bank regulation.
"This book is a revelation. Although it appears to be written as a wake-up call to the Salmond led SNP, showing that a separate currency for Scotland is the one and only way to obtain true freedom from financial oppression, I see it as a wider blueprint which must be observed and acted upon for the benefit of all people, in all countries, ..............." Ronald Rankin
The About Us page provides a little background about the Centre for Scottish Constitutional Studies and the Scottish Monetary Reform organisation - part of the international movement which now includes several prominent universities and associated professors of economics & finance.
If you would like to discuss a presentation or speaker for a meeting please contact us at the address below.
This tab introduces you to a speech by Dr Mahathir, the Prime Minister of Malaysia who successfully steered his country through the Asian financial crisis of 1997. In 2018 aged 92, he has once again been returned as Prime Minister with the primary brief of restoring the National finances. It will be interesting to see if he can rekindle his radical magic....
The article is included here because it illustrates how a small nation can take control of its own destiny in the face of opposition from the IMF, the World Bank, financial markets, the stock exchange and its domestic banks. It is a real life experience to counter the scaremongers and ”ye cannae dae it” pessimists who filled the vacuum of 2014 .
The Video page provides links to videos & other websites directly relevant to currency and the impact of monetary policy on democratic institutions. The video Banking and Society is a layman’s introduction to the last financial crisis and illustrates how these could be avoided in future. in Scotland.
The Declaration of Arbroath
The Greek Myth. This is an account of how the international mega banks lent far too many euros to the Greek banks. When they threatened to default it caused a financial crisis.
It is in the form of an essay entered for the Wolfson Prize in Economics and advised the government to abandon the euro and reintroduce its own national currency - the drachma.
Unfortunately the Greek Cabinet could not muster the confidence to do this and the Greek economy remains stagnant and the home of democracy a financial shambles. It should be a salutary lesson for all politicians - if you do not control your currency you are just another customer of the banks.....