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In interesting times

Posted on July 17, 2016 by


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71 to “In interesting times”

  1. Baldeagle58 says:

    Well put as always Chris.
    I know how you feel. The EBC coverage of PM May’s ‘Coronation’ seemed to go on forever.
    It was nice of her to come up and visit her ‘precious , precious Scotland’, wasn’t it?
    ‘you’ve had your Referendum, Scotland, now shut up!’

  2. Betty Boop says:

    Feel like it, doesn’t it? Another great portrayal of our times, Chris!

  3. Betty Boop says:

    @ Baldeagle58

    Aye, we’re “precious”, all right! So precious, she would like to keep us chained and bonded!

  4. Lollysmum says:

    And the scheduled programmes offer no respite -sheer unadulterated dross.So pleased I’m TV licence free 🙂

    Meanwhile the BBC chose not to show the news of Turkey & the attempted coup yet it was readily available on other European channels & everywhere on social media.

    Why do news organisations see fit to censor our news but still expect our payment for it?

    Events like this always remind me of what they aren’t showing us-Tory election fraud, Chilcott fallout, why UK thinks its OK to dump nuclear waste & leave its ancient nuclear subs to rot in Scottish waters.

  5. ScottieDog says:

    As project fear is ramping up again, the currency question is starting to resurface. Knowing the claptrap that the mainstream come up with I thought I would jot down a quick Q&A. Not exhaustive but a start.

    Q what currency would be best for Scotland?
    A new floating Scottish pound with a Scottish central bank as lender of last resort.

    Q why our own floating currency?
    The financing of any govt consists of what we raise in taxes plus revenue from exports with any shortfall covered by what we can borrow as a nation. As an ISSUER of a currency the Scottish government can determine the interest rate at which it issues bonds (borrows). These bonds will always be attractive to investors as they know that there is a Scottish treasury and central bank with infinite capacity to provide a return. Like other central banks around the world, the Scottish Central Bank can also act as ‘buyer of last resort’ buying up the country’s debt if need be off the bond markets. Just look at how much debt the Bank Of England, Bank of Japan, Federal Bank of America, and European Central Bank have purchased.

    Q can’t we just create money debt free – a sovereign money system?
    Yes we could but not if we sign up to the Maastricht treaty which prohibits this. We will have to sign up to this as part of the EU.

    Q wouldn’t already established currencies like the Euro or pound be the best option?
    No. This would limit our capacity to borrow. As a currency ‘USER’, the shortfall of money after taxes and export revenue would have to be borrowed. An investor knowing the country most definitely can run out of money would want a higher return due to the higher risk involved. This would push up our cost of borrowing. Being in the Eurozone would limit the government’s capacity to run deficits which would be detrimental to our economy in the event of a downturn. Greece needs massive govt stimulus not more austerity.

    Q what about tariffs? How would we trade with rUK?
    Consider that we have a trade deficit with the rest of the UK at the moment. Consider that the UK has a trade deficit with the rest of the world. Following Indy, Scotland would be an important customer of rUK and probably vice versa. Why oh why would London or Edinburgh want to impose limiting tariffs to dampen (already precious) exports and hence drive people out of business? Would England really want Yeo Valley to fold? Nonsensical.

    Q what about our existing outstanding debts denominated in UK pounds?
    There are lots and lots of ways to think about this. Besides walking away from the debt, the Scottish govt could re-denominate its share of the debt in Scottish Pounds. This is what Argentina did when it could no longer service its foreign debt. A boom period followed. (No investors didn’t turn their backs on Argentina )
    Of course to preserve relations there could be a compromise which included for example help with removal of trident or an asset swap such as oil/energy assets. I don’t believe we would have a problem in this dept.

    Q what about the current size of Scotland’s deficit? Wouldn’t we need massive austerity drive to get us back on an even keel as some mainstream economists say?
    Consider the areas in the UK with the biggest tax yield. That would be the banking sector in London and the South East. That was the sector which received the biggest bailout in 2008. So it was govt stimulus that produced the tax yield!
    As for austerity, it should be obvious now (unless you are a devout Tory) that what works on the household scale doesn’t work on the macroeconomic scale. You can’t reduce the spending gap by taking money out of the economy. If (unlike the UK), the Scottish government spends productively to create jobs, it will create tax revenue which will reduce the deficit on the long run anyway.
    It is tempting to believe that the government should live within its means, yet the way our money system works if that happens the rest of the economy (households, businesses etc) have to increase their borrowing for the economy just to stay still (A government surplus is our deficit) This is what consecutive government’s did from 1980 onwards, creating a huge debt bubble which culminated in the 2008 recession.
    Household debt alone is now approaching £1.5 trillion – another bubble.

    Q won’t this large spending stimulus risk inflation, devalue the currency and increase interest rates? What about our credit rating?
    inflation will only start to ramp up if we spend beyond the productive capacity of the economy . Mainstream economic models assume erroneously that we are already there. We are no where near maximum output.
    For interest rates see the first question.
    Any devaluation will benefit our exports. Yes imports will be more expensive for the time the currency is down but the benefits of the govt spending for our country far outweigh the disadvantages.
    The ratings agencies are becoming more farcical by the year. They were taking money from the likes of Enron and the big banks (just before their collapse) and giving them AAA ratings and at the same time downgrading Japan to junk status (a lower rating than countries it was proving aid to!).
    All Japan’s debt is denominated in its own currency. It has huge foreign reserves. To say it was at highest risk of default (junk credit rating) is farcical. Luckily the Japanese government just laughed and created the biggest government deficits of any country and will never go bust.

    So we need to just nod and smile and get on with building a country.

    Q won’t Scotland have a ridiculously big banking sector?
    yes – the solution to this should be obvious!

  6. Truth_Hurts says:

    Q can’t we just create money debt free – a sovereign money system?
    Yes we could but not if we sign up to the Maastricht treaty which prohibits this. We will have to sign up to this as part of the EU.

    This is why we live in abject poverty and debt slavery. This MUST NOT BE ALLOWED in an independent Scotland.

  7. G H Graham says:

    From The Office of The Prime Minister of The United Kingdom of Great Britain & Northern Ireland.

    July 17th, 2016

    To Ms. Nicola Sturgeon FM

    “As we all know, Scotland is an economic basket case, swollen with the unemployed, benefit cheats & haggis eating drunks whom we English, heavily subsidise.

    The weather is invariably quite dreadful & there’s absolutely no chance of you leaving the UK because we need to keep Trident. It is Britain’s international penis extension after all. And even though Holyrood is effectively a one party state run by N*zis & Andy Murray’s name sticks in our throats, we somehow find it in our hearts to still love you.

    We agree that royal groveler, Nicholas Witchell is dreadful but on the whole, the BBC really is great. Have you ever seen such gloriously baked Battenburg cakes & Empire Biscuits with such precision as you have witnessed on our television screens?

    Now, don’t forget to eat your cereal because Westminster knows best. It is a democracy after all. Eight hundred hereditary & life peers as well as our Lords Spiritual will always gallantly negotiate in any number of their heavily subsidized bars & restaurants, on your behalf to keep it that way.

    Yes, Britain does indeed suffer from a chronic negative trade balance, a debt mountain taller than Everest & an embarrassingly low level of productivity. But as soon as we get rid of those lazy Spaniards, French & Italians, conditions will improve for all of us including ‘Top Gear’. Wasn’t Chris Evans rubbish?

    God bless the Queen of England & Rule Britannia.”

    -Theresa May PM

  8. ScottieDog says:

    Just noticed the herald article regarding currency.
    The journalist writes..

    “If the policy was changed, Scottish banks would need to have confidence in a new central bank, while companies would face transaction costs when doing business south of the border.”

    Why wouldn’t banks have confidence in a central bank. It’s normally the opposite. Having a lender of last resort can create a moral hazard. As for the second part I addressed that above,

  9. Andrew Morton says:

    Scottie Dog @ 08:34

    Excellent comment, this deserves a Wings article of its own.

  10. Albaman says:

    Scottie Dog @ 08:34,
    If your a friend of the “Wee Ginger Dug”, that would make some twosome, on the independence front.
    Like others,I’ve read your “article” with interest.

  11. Macart says:

    Nice one Chris and yeah, it does feel like that. Look away for two seconds and you’ve missed at least two earth shattering catastrophies and a royal photo shoot.

    @Scottie Dog

    Yeah, clocked that and its got the right folks knickers in a bunch. Kinda lets you know just what they’re afraid of, yes? A Scottish central bank and a harder line on a Scottish currency.

    ‘Course the usual suspects will find fault, but they more or less hamstrung themselves last time out with the reasonable and conciliatory position of a Sterling zone. Their choice, not ours.

    Oh and just now on Marr – Marr and Eagle car crashing over the question of a second Scottish referendum. Marr to Eagle – If you were PM you could legally block a referendum, would you? Eagle to Marr – ‘we should bring the country together and move forward.’ Said after much flummery about basically you’ve had your referendum and a result you should respect.

    Maybe me but deliberately driving a horse and cart through the commitments you make during a referendum has consequences. Massively changing constitutional and economic circumstances you led folk to believe would and could never change may also be a bit of a game changer, but then I’m not a politician. Maybe the rules are different where they live?

  12. Macart says:

    Oh and let’s not forget those Trident debates tomorrow. When the votes are finally taken and counted on this issue, let’s just see how better together we are. Will they listen to the Scottish benches? Or is the word partnership merely a short form for sit down and eat your cereal?

  13. Macart says:

    Nicola on Marr.

    Angela Eagle… TELT! ‘Scotland isn’t a region, it’s a nation.’

  14. Soutron says:

    Excellent post Scottie Dog. Indy Scottish pound is the only sensible option.

  15. Fairliered says:

    Excellent summary, Scottiedog.

    We not only need our own currency, separate from sterling, we need to highlight that we don’t want to be linked to the failing currency of a failing state.
    However, we will need to accept that the Scots currency is likely to be stronger, and therefore appreciate against sterling, and that it may make some of our prices higher than those in England.

  16. davidb says:

    @ Scottie

    read this

    Then google Adam Smith Scottish Currency and read some of the essays it will throw up.

    Our Government is already looking at currency options. It is not that Mr Salmond was not right last time out, its that the media seized upon the issue to our disadvantage. For average IQ to be 100 it means every genius has an anti genius. And unfortunately many people struggle to grasp the concept of what money actually is.

    I don’t see why we cannot just allow any currency to freely circulate. If people want to buy and sell in pounds dollars euros or milk tokens let it be.

    As to cross border trade with England. There are lots of goods and services which cross the border because it suits commercial organisations to do their business that way. How is it that Aldi can fill its shelves with produce from Scotland, but other retailers feel they can only source produce in Kent? Will professions not find growth at home servicing Scots businesses and government which currently go through London?

    Independence leads to new opportunities. We will have all the levers of control. It is not inevitable that we will just become a disadvantaged appendage of England. Our own people have a track record of commerce and industry all around the world. But in a centralised state where the centre of gravity is a black hole far from here we get our oxygen sucked away.

    I didn’t understand that cartoon. But I don’t watch the MOT, nor listen to very much of their Radio any more. Licence free. Mind control free.

  17. Grouse Beater says:

    I like the stripey socks!

    Incidentally … the Turkish coup was hellova amateur.

    They drop a small bomb on the parliament building, a few tanks rumble aimlessly down a boulevard, journalists armed only with rolled up newspapers arrest soldiers, and everybody gives up after a day with little or no fighting.

    Next day, over 2.500 judges get dismissed?

    Erdogan begins major clamp down on civil rights.

    Erdogan has assisted terrorist groups for years. For just as long odious Farage and Bumbling Boris warned of Turkey’s ‘imminent EU membership’, of hordes of Turks streaming into Europe and then Blighty just for Starbucks latte and jellied eels: so, safer we leave the EU. Good thinking, chaps. Could more refugees be on their way?

    Your weekend reading:


  18. ScottieDog says:

    I see the UK and Australia are talking about a free trade agreement in the words of Tommy cooper – just like that. Still we are being told of the impossibility of cross border trade with rUK and an Indy Scotland.
    It’s beyond a joke now.

  19. Grouse Beater says:

    Davidb: “I don’t see why we cannot allow a currency to freely circulate.”

    Our new currency should be name The Ecky. I look forward to my 20 Eck note.

  20. Woody says:

    @ScottieDog – I am not an economist nor do I have experience in macroeconomics or monetary policy. Do you ? (not meant to be a barb) Paying down the national debt is just a smokescreen for austerity anyway, it doesn’t matter that the UK has a “debt mountain” and wouldn’t matter if Scotland had one either. Compare the national debt of Russia with the US e.g.

    Any trade deal with the UK would be determined by the EU (assuming Scottish membership), I would hope the UK and EU can come to a free trade deal though.

  21. Alan Mackintosh says:

    Hi Chris, I was discussing the lack of a cartoon yesterday. Its my saturday morning go-to first thing. Initially thought that “slacker Cairns ” was away gallivanting round the Highlands again, but then had a vision of you sitting there drawing a cartoon listening to the news. After a few minutes you had to stop and screw the draft up and start again with something different. Next idea sketched out and started… next news bulletin… start again. And so on…

    Nice socks!

  22. HandandShrimp says:

    I know Stu likes to deconstruct the words of reporters but I think he has his work cut after listening to Fraser Nelson this morning on the long interview on radio shortbread.

    My goodness did he play fast and loose with reality. It may take some time to nail every piece of nonsense.

    I did like Katie Grant’s annoyance that the Sunday Herald had a piece on a Scottish currency on the front page. She strayed from news analysis to “how very dare they” with one easy step. It is always good to start Sunday breakfast with a chuckle. 🙂

  23. Effijy says:

    Owen Jones on the Marr show admits that he will vote to spend £200 Billion on replacing Trident, and he would press
    the button to potentially kill 1,000,000 people.

    He obviously seems to have missed that we are in an 8 year
    long period of Austerity, heading into even greater terms of Austerity, due to the Brexit vote.

    Never mind those millions who use UK Food Banks, never mind the Hundreds of Thousands of innocents who would die when you press that button, at least Labour would be in “Control”?

    As an add on, he regrets abstaining one the Tory vote for welfare cuts?

    How dare these people pretend to have any association with socialist principles to act in the best interests of everyone!

    Red Tory Empire Builders focused on their own self interest

  24. Alan Mackintosh says:

    Scottie Dog, I was discussing the way forward with a ffriend last week and currency came up. His idea was for SG to set up a Scottish Investment Bank now so that it is up and running and can then morph into a central bank as and when it is required.

    I also recall the article from the Adam Smith Inst which mentioned Scottish banks having no lender of last resort in the 18thC which meant they acted much more prudently. Banks acting prudently seems an eminiently sensible thing to me.

  25. yesindyref2 says:

    @Woody: “Any trade deal with the UK would be determined by the EU (assuming Scottish membership), I would hope the UK and EU can come to a free trade deal though.

    Nobody knows, but it’s unlikely Scotland’s trade with the rUK would be covered by normal EU rules because of the pre-existing volumes of trade between us. It would be the subject I would think of several Protocols to the Articles, as exists for other countries to cater for their different needs. That would be up to the negotiating teams.

  26. Breeks says:

    Keep the news coming says me.

    The more that happens in the big bad world, the more the insular stupidity and narrow viewpoint of the BBC and rUK is exposed as retrospective nostalgic self dillusion.

    England wants to shut things down, cover them up, shake it’s head and pretend things are not happening. Scotland is outward looking, keen to engage, and infinitely more progressive in its outlook.

    When “news” happens, the propaganda is briefly put on pause… But so very briefly…

    Professional news broadcasting eh? It’s true. Absence does make the heart grow fonder.

  27. yesindyref2 says:

    @Alan Mackintosh
    That’s what I’d think is the ideal thing too, limited capacity for the central bank to provide liquidity, bit not to bail out on the 2008 extreme. I’d be as happy with the banks themselves covering the currency, under supervision of a Currency Commission.

    And for me a pegged currency to start with, it’s easier and safer, specially with a currency board for stability. That’s what Ireland did back in the 50s (?).

  28. Tam Jardine says:


    Thanks – really good post. I find that having been conditioned to think of a country’s finances as similar to household finances it is difficult to get out of that mindset. Your post helps.

    On May’s visit beyond the wall, there is a funny piece in the Daily Mail:

    The story has all the elements required for its readers to burst blood vessels- it is almost the perfect story in this regard

    I’ll paraphrase: “Our Prime Minister, new to the job (and a Remainer FFS)- her first priority was to crawl north to THAT WOMAN and she did WHAT? She gave her a veto over brexit so the subsidy junkie jocks can steal our great victory over the EU from us! Aaarrrggghh!

    3000 comments so far and a few wee needles in there from pro indy Scots having a bit of banter.

    What a time to be alive!

  29. JaceF says:

    The UK government are going to refuse a second indyref or kick one so far away we lose the momentum.

    We should actively seek that refusal, if I were the SNP I would call a Scottish election at the same time as the upcoming council elections with UDI as the manifesto pledge.

  30. Valerie says:

    Good toon, Chris as always.

    If the Queen, during an activation, were abducted by aliens, it would only make the 3rd item at the moment.

    At Handandshrimp, that Nelson is an odious uber Tory. He sat opposite Ken Loach, on Channel 4 news, spouting absolute furious garbage, lauding Boris. Even Loach was speechless.

    I think this time round, a lot of us will leave the trolls to spew in their own echo chamber. I am regularly blocking Britnats on Twitter. The Rev doesn’t seem inclined to indulge nonsense either on his timeline.

  31. ScottieDog says:

    I wrote a letter to the national in response to Michael fry’s article but don’t think it got published.
    Far better to legislate dodgy banks out of existence than do without LOLR. If banks know they won’t get away with their shenanigans then they won’t try it on.

    Fry completely ignores the financing of gvernement in the equation as I think he believe completely in the market and small government. Yet having your own currency is crucial to the solvency and the borrowing costs of a country.

    The idea that the market is self correcting and will run without interference has been blown out of the water. The markets themselves very much suck of the government teet. The securities market for example trade risk free govt debt. Without that debt being issued there wouldn’t be a securities market. It’s a form of corporate welfare.

  32. Papadox says:

    @handandshrimp 10:13 am
    Listened to Nelson contradicting himself and tying himself in knots. The guy is a complete eejit and obviously is part of Westminster propaganda machine. His Nairn accent is something to behold a total tube. Says a lot about EBCs talent pool of experts.

  33. Naina Tal says:

    Fwehza Nehwson on misinformation wireless this morning. Still trotting out the same lies
    Spanish Veto
    Cawbinn enewectable etc.
    A mooth fu o bools spewing bull.
    Then he comes awa wi “Meh home town Nayun”

    As usual yon hure Brewer jist let him awa wi’t aw his pish unchallenged. Next PQ demo?

  34. Macbeda says:

    @ Tam Jardine
    C’mon, complete the story and give us a link to all the comments. We need a laugh too you know.

  35. Chris Cairns says:

    Hi @Alan Mackintosh – I was away for a week but had to cut it short for a number of reasons. Found myself with a bit of spare time before the golf came on the telly on Saturday so bashed this out to stop the Rev’s bottom lip wobbling.

  36. gordoz says:

    Said it before and I’ll say it again – WTF is Fraser Nelson on ???
    (GMS today).

    Serious Q’s why broadcaster goes back again and again to the same Yoon muppets. Denial of facts or what.

    Sure the good Rev will have a field day with this pap.

    As we say in these here parts “a complete puddin”

  37. call me dave says:

    Too much news Chris you must have a wastepaper bucket full of half finished stuff. 🙂

    @Naina Tal
    Aye heard it all and it continued in the paper review…Scottish currency scare… Baaawaaa haaahaa! On radio shortbread move along.

    Sitting in the cafe now and an acquaintance shows me the Sunday Herald front page… “should have done this first time round” he says.

    I nod 🙂

  38. One_Scot says:

    Angela Eagle there telling us that Scotland is the equivalent of a city in England.

    Seriously, if Scotland does not win the next IndyRef, then it will have been either fixed, or we really, really are too stupid.

  39. I Clark says:

    Effigy at 10.19

    I don’t think the left wing Owen Jones would appreciate being confused with the right wing warmonger Owen Smith!

  40. rongorongo says:

    I have been trying to decide whether the socks were recycled from The Cat in the Hat or Wally. Maybe one from each?

    @Scottiedog: Thanks for this comment – it would indeed make a great basis of an article. Can you explain why you think the currency should be independent and floating – rather than independent and pegged (to, say GBP or EUR) – the Herald article seems to hint at a pegged solution being favoured.

  41. Tam Jardine says:


    Trouble is the comments don’t seem to archive properly so you have to go into the actual site itself to read them. (Or else I can’t seem to archive them using

    Anyone fancy a crack at archiving their comments site?

  42. Smallaxe says:

    @ ScottieDog

    Could a Scottish Central Bank lend money to the SG at a lower
    interest rate than normal to be used only for infrastructure?

    Chris I hope the guy portrayed has not paid the TV tax!

  43. Marcia says:


    I’ve seen books on Scots Law but not much on Northern Law. Must keep looking.

  44. Lenny Hartley says:

    O/t Bbc annual report out, had a quick look could not see if the sweaty sock region has separate propaganda tax listing, maybe somebody cam find it?

  45. Macart says:


    ‘ why broadcaster goes back again and again to the same Yoon muppets.’

    Because they wouldn’t like the answers they’d receive from pro indy writers.

    Can you imagine the same questions being asked of the Rev? Howzabout Paul Kavanagh or Derek Bateman, Pat Kane, Ruth Wishart or Lesley Riddoch and that’s just a handful? Its not as if there is a shortage of popular pro indy opinion or commentary out there.

    But then going to source when you need information or opinion isn’t exactly on their to do list.

  46. Dr Jim says:

    Own currency is it? who ever heard of such a thing, it’s impossible, countries don’t have currencies of their own, it’s preposterous to even think about one country having a different currency to another

    But how many Yoons would read that and think, Duh, ats rite intit ye canny dae tha kin ye whut aboot yur holydays whood chynge yur munny itae that Spanish munny

  47. Tam Jardine says:


    I checked out the worst rated comment on the mail site:

    raydo, London, United Kingdom, 23 hours ago

    “That’s kicked Brexit into the long grass then. Brexiteers will have forgotten all about it by Christmas. What are they going to do anyway, go on strike? They’re all pensioners…”

    513 wee red down arrows and counting!

  48. bjsalba says:

    Has anybody noticed how much of the BBC “news” reporting is not actually news? Or what doesn’t get reported?

    Why is it that when there is a story about Obama it is almost always followed by an interview with or comments from a Republican – critical of course.

    Last night a piece on the Nice attack was followed by the “reporter” in Nice saying how the French wondered why the British were so much better at preventing acts of Terrorism. Really? Quite frankly unless the reporter brought it up, I doubt if any such thoughts would have crossed their minds.

    This morning another piece covering French Government calling up reserves to boost security, we get told what was said by Marine Le Pen, head of the far-right National Front party. Why?

    But we don’t hear anything about the drop in support for the German right wing party AfD (gone from 15% to 8% in polling after Brexit) reported by Reuters. Why not?

  49. galamcennalath says:

    One_Scot says:

    “Angela Eagle there telling us that Scotland is the equivalent of a city in England.”

    … and Nicola putting her right.

    Eagle does seem a bit geographically challenged.

    But hey, could be worse as more and more folks doan souph think we are the Wildlings from beyond The Wall, well beyond The North! Just as well Nicola Stormborn is on our side.

  50. AnTeallach says:

    Is anyone else having trouble accessing Newsnet site? It seems to have disappeared for me.

  51. Grouse Beater says:

    “Angela Eagle there telling us that Scotland is the equivalent of a city in England.”

    ”Sadly, that appears to be the residue of colonial mentality extant in merry England, from the person in the street to the land owners in their stately piles supported by welfare grants.

    You hear it in a lot in the line, “We hear in the north suffer the same problems from Westminster.”

  52. call me dave says:

    Oh good Sunday Politics where ‘you are’

    “Have you got a veto on Brexit” asks Brewer. Good start!

    She’s play it cannae…”What form of Brexit do you mean”she asks.

    Lots of opportunities for fenestration, dancing on the head of a pin. 🙂

    Sturgeon’s not going to answer questions like that until May decides what to do re: Article 50 and the button thing. Quite right too.

    Brewer’s trying his best to tie the SG down but she’s shadow boxing very well. 🙂

    Brewers losing the will to live, getting nowhere on EU, so tries Trident now.

  53. gordoz says:

    Heard it Macart.

    What do outsiders make of this; would seriously like the world to know the BBC does not Represent or report on behalf of, at the very least 50% of Scotland.

    Disgusting management of programming again and again.

    So frustrating. Cancellation of license fee now very imminent.

    YES must have some form of regular TV or online broadcasting platform (or agreed impartial station) next time, or we will struggle as before.

  54. velofello says:

    @ ScottieDog: Interesting article, I enjoyed it.

  55. scottieDog says:

    Mastricht agreement prevents central bank creating money directly to fund govt but doesn’t prevent govt from borrowing from say a commercial bank at a low rate.
    There is nothing Mastricht which stops central banks buying up existing debt from the secondary market. A bit farcical.
    It’s just debt monetization via the back door which has been going on since 2010.

    A bank will happily purchase govt bonds knowing that govt will buy it back at higher price!

  56. Papadox says:

    @macart 11:12
    You appear to be unaware Macart that the EBC are a much respected, fair and well balanced broadcaster. Well balanced aye they’ve got a chip on both shooders.

  57. Kenny says:

    Stu, would it be possible to bookmark Scottie Dog’s post on currency, or get him to write an article like the one on our friends in Europa? Which could be constantly updated and supplemented by additional comments and debate.

    Would also be good to see parallel discussions on digital currency, ideas on a sovereign wealth fund, etc.

  58. galamcennalath says:

    Grouse Beater says:

    You hear it in a lot in the line, “We hear in the north suffer the same problems from Westminster.”

    They have a simple solution. Work really really hard to build a national identity and culture for a millennium. Then they too can develop an independence movement.

  59. Macart says:


    Aye, its a bugger. The SG are tied by legislation and law and the YES movement by the shear depth of the oppositions pockets. How and ever there are ways and means. The SG or rather the YES campaign could commission documentary or programming and book prime time slots on commercial channels in theory. Still hugely expensive, but doable.

    They could also deep six BBC ‘debates’ and organize travelling roadshows. Book venues, organize stalls, music speakers, forums etc. in burgs all across Scotland. Make each town or city a well marketed and go to event so to speak. Launch bill board campaigns, publish and mass produce a version of their own WBB early doors and get it out there early on in the campaign.

    Internet and social media is already well organized. YES groups are already stirring and gearing up. Most importantly, this time round, SG and YES go on the offensive. We ask the questions, set the agenda of the day, keep the tone positive, but take no prisoners on the negative side of the past two years and a Brexit UK going forward. If they ask a question, we counter it with a question of our own. They have as much and more to answer and answer for, so they can get on with defending their corner.

    Our case is our case and its essential the information is out there and in hand for people to check for themselves.

  60. ronnie anderson says:

    Seeing those photo’s of Nicola & May on the steps of Bute House. The Wee Nip wie the Lang Drip, hud oan tae yer knickers Teresa your in fur a wild ride oan this roller coaster.

  61. MarkerPost says:

    A genuine question.

    Given the omnishambles of Brexit, and with no-one seeming to know what the outcome will be, or even what questions to ask, would it not be a good idea for the Scottish Government to announce, soon, that it will hold a referendum on Scottish independence from UK, say, 6 months prior to Brexit. By that time we would know most of the outcomes of the Brexit negotiations, we would know how the international community is reacting and what trade deals are being finalized, and whether Scotland will be a net beneficiary from Brexit or be shafted once again by Westminster.

    This would also (hopefully) make all of us, and particularly the No voters from 2014, pay attention this time to all the negotiations that are going to happen over the next 18 months or so, and figure out how Scotland is going to be impacted. That is why the devolved governments needs to be closely involved in Brexit negotiations, because we will need commitments as to how Westminster would fill the gaps in funding as a result of Brexit.

    It would also sidestep Theresa May’s ruse of making the devolved governments agree on a strategy before pressing the Article 50 button.

  62. Smallaxe says:


    Many thanks for your concise and helpful reply.Peace.

  63. Iain More says:

    I think a week on Tuesday might be too soon.

  64. Jim Morris says:

    As to currency and government finances: appoint an honest impartial watchdog, then ask the Icelanders for advice as to the quickest way to imprison cheating banks and financial services.

  65. Robert Peffers says:

    @Fairliered says: 17 July, 2016 at 9:49 am:

    “We not only need our own currency, separate from sterling, we need to highlight that we don’t want to be linked to the failing currency of a failing state.

    Not only do we already have our own currency – The Pound Sterling – but it is recognisable enough in the Merry Olde capital city of England that their traders, retailers and service industries will either refuse it or will offer less that its face value to unwary people of Scotland who tender it in the Land of Little England.

    The thing is that we already do have our own currency and we have had it legally since 1 May 1707. Strangely that is exactly the same day that England, and the other countries in that Merry Olde Kingdom have had the very same currency.

    The Pound Sterling is thus legally as much Scottish as it is English but here’s the thing – when, (note NOT if), Scotland decides by a majority of the sovereign people of Scotland voting for independence and thus Scotland legally becomes once again an independent kingdom, or perhaps becomes just only an independent country, that is Scotland becomes a republic.

    The already well established parliament of Scotland only need declare the Pound Sterling as the official legal currency of Scotland for the change to be instant. We already have the Scottish Banks and recognisable Scottish banknotes and every last one of them carries the same message on its face and is signed by their group, “Chief Executive”.

    I have in my hand a Royal Bank of Scotland £10 note and that message states:-

    The Royal Bank of Scotland plc, promise to pay the bearer on demand Ten Pound Sterling at their head office here in Edinburgh by order of the board. It is dated 19th September 2006.

    There is, by law, the equivalent value of that note deposited in a vault in the Bank of England in Threadneedle Street in the City of London.

    Now that deposit automatically ties the Scottish Banks Sterling to that of the Bank of England – Which Bank of England does not actually belong to the Kingdom of England and it never has belonged to that kingdom. It was, from its birth, a private limited company still today official known as, “The Governor and company of the Bank of England”. It remained an independent company with a Royal Warrant until 1946 when the Government of “The United Kingdom”, nationalised it.

    Thus, as the Treaty of Union is legally a bi-partite union between two equally sovereign kingdoms, makes, “The Governor & company of the Bank of England”, every bit as much Scottish as English and thus that deposit lying in the bank’s vaults Scottish. In other words the Kingdom of England must either accept that it must legally back the Scottish banknotes or return the value of those notes to an independent Scotland. i.e. they are already the automatic lender of last resort. Whether they like it or not.

    Now here’s the rub. Scotland is actually not generating any national debt as Scotland, (in spite of the fiddle of Scottish produced goods and commodities leaving the United Kingdom from English ports being accounted as English exports), Scotland is a net exporter. There are other Establishment fiddles of accountancy – too many to debate here.

    We thus do not have a balance of trade deficit. We also do not have a fiscal deficit as our Per Capita GDP is, (on average), higher than the UK average per capita GDP.

    Thus the Scottish Pound Sterling will instantly become stronger than the English Pound Sterling and Scottish prices will start to rise in relation to English prices.

    This will begin the value of the English Pound Sterling to begin to drop in relation to the Scottish Pound Sterling and that is when both independent kingdoms must take action to redress the problem.

    Believe me it is infinitely better to have a stronger Scottish pound and rising prices than it is to be England with a currency falling over a Clift.

    First of all the Scots banks must remove their deposited cash from the Bank of England vaults before its value goes down. t does, after all belong to them.

    However, also remember the Bank of England is partly a Scottish asset and that means there must be negotiations to compensate the Scottish people for their loss of a part ownership of the Bank of England. (Perhaps by an upward increase in the value of the deposited money from the Scottish banks held by the BofE).

    This would have the immediate effect of the English Pound Sterling dropping in value and thus the independent Scottish Government should have in place an announcement that an existing Scottish bank, or a new amalgamation of existing Scottish banks, be appointed as the official Lender of Last Resort before the English pound’s loss reduces the value of the deposited Scottish bank cash in the BofE’s vaults drags the Scots pounds value down with the English pound.

    Whether the general public realise it or not the facts are that the United Kingdom is NOT a union of four countries but is a union of two equally sovereign kingdoms. When and two partner union of equals ends it ends for both partners and the United Kingdom reverts to two independent Kingdoms. Scotland will not be leaving the Rest of the United Kingdom because there can be no more united kingdom.

    The same goes for the legal fact that the BofE is a UK asset – not a Kingdom of England asset.

    The Westminster Establishment wrong propaganda has been propagated since the union began. The legal facts are quite clear. The truth, and all documentary evidence proves the Westminster view of the legal facts are wrong.

    The United Kingdom is the result of an agreed treaty between two Kingdoms – proven by the treaty and acts of union signatories.

    The BofE is legally owned by the United Kingdom and not by the Kingdom, or the country, of England and Sterling is indeed as much Scottish as it is English – no matter what the general public of both kingdoms choose to believe.

  66. Legerwood says:

    AnTeallach says:
    17 July, 2016 at 11:48 am
    Is anyone else having trouble accessing Newsnet site? It seems to have disappeared for me.””

    I am having the same problem. Have tried several times throughout the day but no response.

  67. bugsbunny says:

    Today is the 80th Anniversary of the start of the Spanish Civil War, which resulted in the rise of fascism and the deaths of 500 000. I only hope when the butchers flag is lowered for the very last time over Edinburgh Castle, the Spanish Flag over Barcelona Cathedral will not be long in being lowered as well. Spain is the Sunny equivalent of the UK. Corrupt to the core.

  68. call me dave says:

    @Robert Peffers

    Another corker Mr Peffers!


  69. ScottieDog says:

    If we commit to keeping a peg with another currency, say the pound, then we effectively commit to mirroring UK monetary policy. If we are hellbent on maintaining the peg then we put pressure on the Scottish central bank to keep/acquire GBP too. It would also give us less flexibility in embarking on spending in difficult times since that would likely put pressure on the peg and so in a sense we would also need to keep in step with the UK’s spending habits. I don’t fancy that much.

    It also exposes us to the currency speculators. George soros embarked on a speculation campaign in the 90s betting that the UK would not be able to maintain its fixed exchange rate with the German mark in the lead up to commencement of the common currency. This resulted in the UK leaving the exchange rate mechanism but it cost us a lot of money in foreign reserves in the process as we fought to maintain the exchange rate.

    In the 70s the then labour govt ended up going to the IMF for a loan in U.S. Dollars rather than surrender its fixed exchange rate with the dollar. The simple answer would have been to allow the £ to float and find its natural level. It makes me laugh that we feel subjugated to Europe. We need to be looking west to find our true masters.

  70. Fred says:

    Bute House is certainly a classier address then Downing Street & has a classier occupant!

  71. Macandroid says:

    @ Scottiedog

    Excellent post.

    Sorry if someone has already thought of this!

    If a new Scottish gov could afford it they should reduce the duty on fuel. As we’ve seen this stimulates business and helps the less well paid. Hopefully a boost for the economy.

    Again reducing the exorbitant duty on whisky would help offset a Scots pound if it was stronger than Sterling, perhaps keeping exports at a similar level.

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