Constitution for Scotland Public Consultation Hub

Section 8.5. The Scots Pound is issued free of debt by the Central Bank of Scotland and in Scotland is the sole legal tender and circulating medium of exchange comprising cash or credit instruments. The origination or placing into circulation of any other money or money substitute shall be an act of counterfeit

Proposed Amendments to Section

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Note that the original wording appears again first below and sustains the same comment & voting regime as all other amendment proposals.

Original Version

  • Avatar admin
    Administrator #1  •  2020-08-16 22:38:10

    Section 8.5. Section 8.5. The Scots Pound is issued free of debt by the Central Bank of Scotland and in Scotland is the sole legal tender and circulating medium of exchange comprising cash or credit instruments. The origination or placing into circulation of any other money or money substitute shall be an act of counterfeit

      • Tim Rideout

        Section 8.5. This should be removed entirely. All money is debt - a £10 note is a liability - or IOU - of the state. The £80 billion of UK bank notes are recorded in the Bank of England accounts as a debt of the central bank. It is therefore impossible to have debt free money in a modern economy as that would violate the rules of double entry accounting. The only thing you could in some sense consider to be 'debt free' is a coin IF the metal content equals or exceeds the face value.

          • Arfem

            Section 8.5. This is indeed the orthodoxy of fractional reserve banking – and straight out of the Economics student notes. Other notes are available here http://www.scottishmonetaryreform.com
            Our MPs have amply demonstrated that they need the help of the Constitution to confront this elephant in the room – and the gobbledegook that goes with its vested interests. Left to the politicians Edinburgh would become no more than a branch of Wall Street and the City of London - with all that implies…

              • Tim Rideout

                Section 8.5. It is Modern Monetary Theory and thus not classical economics. This section is a nonsense and should be removed as I said.

                  • Arfem

                    Section 8.5. The original Section is expressing the principle that the guarantee of the State and its taxpayers will no longer be available to private credit created by banks. Banks may however borrow from the Central Bank which can then regulate how it is used. This would create stability and stop the Public Credit being freely available to speculative financial markets and commercial adventures

                    No responses

Proposed Amendment to Section 8.5.

  • LouMCowan

    Origin and control of currency

    Section 8.5. Section 8.5 The Scottish currency, as designated and originated by the Scottish Government, is the sole legal tender and circulating medium of exchange comprising cash or credit instruments. The origination or placing into circulation of any other money or money substitute shall be an act of counterfeit.

    2 votes  |  I agree 2 I disagree 0
    No responses

Proposed Amendment to Section 8.5.

  • Arfem

    NEW ARTICLE 8 - Taxation

    Section 8.5. Taxation shall be designed to incentivise environmentally & socially responsible behavior and focus upon consumption rather than penalizing earnings and profits. Land Taxation by way of Annual Ground Rent or a similar system will also assist in a fair, equitable and ant-avoidance tax regime.

      • Arfem

        Section 8.5. The whole of Article 8 is too detailed. So this is one of five Proposed Amendments all headlined NEW ARTICLE 8 and with active links to one another. Starting off without the baggage of debt and ‘financial custom’ government should commission a fundamental review of how it raises its revenue. Taxing & spending are two sides of the same coin and both can give direction to government policies.

        No responses

Proposed Amendment to Section 8.5.


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