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Section 8.8. The Government will obtain the capital investment funding required to finance the material and labour costs for new major national assets, directly from the Central Bank of Scotland.

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Original Version

  • Avatar admin
    Administrator #1  •  2020-08-20 17:49:19

    Section 8.8. Section 8.8. The Government will obtain the capital investment funding required to finance the material and labour costs for new major national assets, directly from the Central Bank of Scotland.

      • Jim Osborne

        Section 8.8. This is a proposal for "direct monetary financing" (DMF). DMF has to be undertaken at the instruction of the elected government. There is no reason whatsoever to limit DMF to capital spending - it could be used, for example, to pay all state pension benefits. The balance between funding public spending from taxation, borrowing, QE or DMF is a matter for the judgement of an elected government and it is not appropriate to prescribe in a Constitution how a government should structure its spending . If power over DMF is handed to the bankers they will use the power of the state to create new money in the interests of bankers.....that's what happened in 2008 when QE was used to bail out banks.

          • Arfem

            Section 8.8. ‘Printing’ money to create a Tangible Public Asset is not inflationary. Doing so to finance revenue costs or for consumer spending e.g. benefits, pensions etc. is directly inflationary. Mrs. Thatcher ran an elected government for the benefit of the banks and the City. The Constitution needs to protect us from the banking & finance lobbyists who have enthralled ALL our politicians - of all stripes, for decades..

              • Jim Osborne

                Section 8.8. No its not.....its inflationary only if the economy is at full full employment. Money can be removed from the economy via taxation (or by "borrowing" in the national currency, which takes money out of circulation by saving - people and institutions buying government bonds is a form of saving) if inflation becomes a problem once the economy is at full capacity.

                No responses
              • Tim Rideout

                Section 8.8. Jim Osborne is correct. Inflation is caused by too much spending. It does not matter what you call the spending. Too much spending on capital assets, e.g. council housing, can cause inflation in exactly the same way as e.g. increasing civil service wages too much. Creating money per se never causes inflation. If the BoE gave me £1 trillion right now into my bank it has no effect until I spend it. You need to bear in mind that issuing bonds to the citizens is simply a state guaranteed savings scheme. If there are no bonds then there is no safe investment for e.g. a pension fund.

                  • wilson logan

                    Section 8.8. The state can provide funds for a pension ex nihilo without anyone saving any money.

                    No one needs bonds to save for a pension because no one needs to save.

                    Should inflation be a problem, a sufficiently high tax level will provide the economic headspace for a high pension.

                    The natural rate of interest is zero.

                    All economic rent should be abolished.

                    No responses
      • Tim Rideout

        Section 8.8. Given clause 8.7 which authorises issuing bonds or running an overdraft at the Scottish Reserve Bank, then this clause is not required and can be removed entirely.

        No responses

Proposed Amendment to Section 8.8.

  • LouMCowan

    Delete original and replace with..

    Section 8.8. Section 8.8 The Scottish Revenue Service will maintain a simple tax code which is both unavoidable and transparent to all. Every organisation that wishes to do business in Scotland will be subject to the Scottish Tax Code.

    1 vote  |  I agree 1 I disagree 0
    No responses

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