Public consultation process
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.
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.
Section 8.8. Would the purpose of this clause be to render PFI and similar models of finance unconstitutional?
Section 8.8. Yes – it would render any private sector borrowing for public investment in infrastructure & buildings unnecessary. Authorized investment would come directly from the Central Bank not via the commercial banks.
Section 8.8. Don’t know about unconstitutional – but why go into debt and pay interest if you have this facility?
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.
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..
Section 8.8. No its not.....its inflationary only if the economy is at full capacity.....at 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.
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.
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.
Section 8.8. This is why the Constitution needs to protect everyone from Thatcherite extremists and at the other end the intellectual nurseries where they propagate Magic Money Trees and tolerate private banks lending unlimited credit and being bailed out when they go bust. It is NOT complicated - if money or credit enters circulation without a concomitant increase in real wealth then it is simply soaked up by inflating the price of existing assets, principally the housing stock. More at http://www.scottishmonetaryreform.com
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.
Section 8.8. Understood and agreed with.
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.