Constitution for Scotland Public Consultation Hub

Section 8.7. The Government may not issue any other bonds or debt instruments other than as required by the Central Bank in settlement of foreign balance of trade deficit and as limited within its regulation by the Constitutional Monetary Authority.

Proposed Amendments to Section

Please scrutinise all the proposed amendments and replies before commenting or voting. Short comments are most often read and must not exceed 100 words.
You can propose an Amendment at the bottom of this page - please read the guidelines .
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  •  2020-08-20 17:49:04

    Section 8.7. Section 8.7. The Government may not issue any other bonds or debt instruments other than as required by the Central Bank in settlement of foreign balance of trade deficit and as limited within its regulation by the Constitutional Monetary Authority.

      • Jim Osborne

        Section 8.7. It is for the government to tell the central bank what to do, not the central bank to tell the government what to do. The various draft sub paragraphs in Article 8 will have the effect of completely undermining the provisions of other important articles which are designed to create an accountable democracy. Together the sub paragraphs of Article 8 hand over control of the country to the bankers.

          • Arfem

            Section 8.7. If that is correct we can expect to see these spaces filled by supporters from the Financial Establishment. It will be interesting to see how the votes stack up….

            No responses
      • Tim Rideout

        Section 8.7. How or why should the state issue a bond to settle a balance of payments issue? The balance of payments reflects the activities of the private sector (largely) and as such is dealt with by the private sector and by changes in the exchange rate of the currency.

        No responses

Proposed Amendment to Section 8.7.

  • Tim Rideout

    State Borrowing

    Section 8.7. In the interests of managing the economy to achieve full employment of labour and other resources of the State, the Government may borrow by means of issuing bonds denominated in the Scottish Currency, by over-drawing the Treasury accounts at the Scottish Reserve Bank or by such other methods as may be authorised from time to time by Parliament.

      • Arfem

        Section 8.7. As commented previously – why ‘borrow’ your own currency - other than to subsidise a privatized ‘debt currency’ aka fractional reserve banking? This provision is to borrow foreign currency if and when required.

          • Tim Rideout

            Section 8.7. The state should never borrow in a foreign currency. The UK does not other than to a trivial extent for monetary purposes. Borrowing in foreign currencies is how you get into the Venezuela position. The state should issue bonds in its own currency - these are simply term savings deposit accounts at the Scottish Reserve Bank that provide a secure and safe haven for private sector savings, e.g. for pension funds. The state is providing a service to citizens. There is no requirement for the state to borrow its own currency to fund spending. Borrowing foreign currency can never fund domestic spending.

              • Arfem

                Section 8.7. Well, until we have built up some reserves from exports where will the Central Bank find foreign currency to pay for imports? But you are correct that we should be very careful about borrowing it other than as short term ‘bridging finance’.

                No responses

You must sign in or sign up to leave a comment.