What Do We Know About Currency?: (Scottish Referendum)
I know very little. (So don’t take my word for this)
I do know however that currency is Gold, and only Gold. A nation’s Gold reserves are its value in whatever currency it adopts. Oil, Diamonds, Sheep, Motor cars, all have to be realised as Gold for currency purposes.
I know also that Gold reserves are kept secure. Wonder why?
It is also true, we are told, though we can’t be sure, that some nations hold Gold reserves for other nations. Those reserves are kept in cages and as the currency changes hands the Gold is simply moved from the cage for one nation to the other. Presume this to be only every day capital requirement Gold. Saves shipping it?
Can we be sure this is true? I’d guess it is. What then of the worth of Scotland? In terms of Gold what exactly could Alex Salmond count on? Has he for example considered Scotland’s contributions to offshore responsibilities such as Gibraltar, the Falklands, and a lot more besides? In other fields it’s a lot more besides. Armed forces for example. How would it be worked out? A percentage sounds simple, but that includes a percentage of the liabilities as well, and that argument would never end. Subsidies to businesses like farmers could take for ever to sort out. If not, then full prices would have to be paid for food imported cross border. That’s what export duties are for covering.
I envisage him having one bar of Gold in his cage, and with him and his followers fighting over it. In their cage.
I believe the printing on a currency note says something like “We promise to pay the bearer to the value of this here note, coin Etc. in Gold.” Please don’t go asking for Gold. It’s of no use to you, and the banks would refuse to give it to you anyway. If they’ve any sense.
I wonder if the International Monetary Fund has reserves of its own? Or does it just borrow as required? Just a thought.
Could they use the Euro here?
Like I said, I’m no expert, but I believe reasons have been given as to why it can’t be. I’d certainly not like to be the one trying to work that one out before working out what is theirs in the first place. They can’t just convert existing pounds in Scotland into Euro’s? Much of it belongs to English firms Etc. ????
This is not like Russia taking responsibility for parts of other nations. They have the currency in place to handle that, and the Gold reserves to cover it. It would be no problem if Scotland were joining the U.K., because responsibilities would simply be added on. However taking them off is far from being so easy.
This could bring famine on us. The danger is real. It could also bring famine on England and Wales, but not N. Ireland.
However: Like I say. Don’t take my word for it.