Day: August 30, 2014

The Euro and Scotland

The matter of an independent Scotland, (within the European Union) being forced to Join the Euro surfaces, from time to time, usually in the, “Blether Together” supporting press. This is another example of the lies, “Blether Together” routinely spreads, sewing seeds of doubt in the minds of those who might yet be undecided. The fact is that Scotland cannot apply, nor can it be forced to apply for membership of the Euro.

When a Member State enters the euro area, its central bank becomes part of the Eurosystem made up of the national central banks of the euro area and the European Central Bank, (ECB), which conducts monetary policy in the euro area independently from national governments.

Should Scotland express a wish to join the Euro, after membership of the European Union is complete, it would first need to meet the convergence criteria for entry to the euro area. This requires voluntarily participation in the, “Exchange Rate Mechinism 2”. (ERM2).

ERM2, mimics the Euro conditions thereby helping non-euro area Member States to prepare for them. Successful participation in ERM2, for at least two years is considered as confirmation of the sustainability of economic convergence and that the Member State can play a full role in the euro-area economy. It also provides an indication of the appropriate conversion rate that should be applied when the Member State qualifies and its currency is irrevocably fixed. See attached article;

http://ec.europa.eu/economy_finance/euro/adoption/erm2/index_en.htm

But how did the nation get to this state. “Easy answer”, said the Chancellor, “Alistair Darling” sitting in one of his 3 taxpayer funded homes watching television as the, “City of London” burned. Blame the bankers not me or my friends. But surely our highly paid politicians, of all persuasions should have been aware of the impending financial disaster, since the, “Sub-Prime Mortgage Scandal” had surfaced in the USA 6 weeks before impacting on the UK.

A recent survey of Westminster politicians, of all persuasions revealed one of the key reasons contributing to the disgraceful lack of action which should have ensured the UK would be protected from the excesses of a financial market that, (with the full support of UK politicians) was operating against the interests of the UK taxpayer. The survey, commissioned by the reform campaign group, “Positive Money”, found that of the total number of politicians;

1. 80% lack basic understanding of where the UK’s money comes from.

2. 71% believe that only the government has the power to create money.

3. 9% said they didn’t know who creates the nations money.

4. 12% only, correctly responded, “Yes” in response to the statement, “New money is created when banks make loans, and existing money is destroyed when members of the public repay loans”.

Summary

Positive Money, reported,

1. “the troubling findings show that the UK government is still ill-prepared to see the warning signs of another financial crisis.”

2. “MPs have no chance of understanding the house price bubble unless they know these basic facts about money.”

3. “The financial crisis was caused by banks that created too much money and lent it recklessly. We’re now in danger of repeating the same mistakes.”

4. “Prevention of a second financial crisis can be achieved but the risk of a, “housing bubble” needs to be constantly monitored and addressed.

5. “The government should introduce measures stripping banks of their power to make new money.”

But Scotland need not remain in, “the madhouse” that is Westminster. We have an opportunity in the, September referendum to break free and regain our rightful place in the world as an independent nation. Vote, “Yes” to independence.

http://blueandgreentomorrow.com/2014/08/19/poll-three-quarters-of-mps-dont-understand-how-money-is-made/