British authorities have warned the people of Scotland that if they vote for independence from the UK, they cannot use the British pound. There will not be a currency union that includes Scotland. This is great news.
If the Scottish really want independence, then they must free themselves from the banking chains of the Bank of England. The British pound, like all central bank currencies is used to extract wealth from anyone who holds the money. This is done by issuing more money, also known as inflation.
Just picture a table with ten glasses of water. Creating new money is the equivalent of adding ten more empty glasses to the table, then distributing the water from the first ten glasses amongst the twenty glasses. The original ten glasses will have fifty percent less water. The new ten glasses get water for free!
It is the British bankers who would suffer if the Scots stopped using the pound because that would be five million less people the bankers could steal from. Five million fewer glasses of water to pour from. The warnings from the UK treasury chief echo the words of the slave plantation owner who advised his slaves not to seek freedom. It is the slave owner who would suffer, not the slaves.
Long ago, the British pound sterling stopped being a pound of sterling silver, yet comically they still call it the pound sterling. The pound is now just a bunch of digits issued by the monopoly central bank and those digits are devalued each year. The longer you hold the pound, the more value they steal from you. You might still have the same number of pounds, but they are worth a lot less.
Here’s what the Scots need to do: allow people to use anything they want as money. Yes, this is independence–for each individual. Forget about a gold standard, let people choose their own standard, just as they choose their investments. Trade would still happen with money substitutes such as paper and charge cards.
The Scots must also remove extra taxation that applies currently when people use a product, instead of paper money, to buy another product. If I buy a movie ticket with a voucher for three gallons of gas, the government applies taxes the ticket and the gas. Whereas if I use the pound, only the movie ticket is taxed.
Therefore, the Scots must repeal the capital gains taxes on gold, silver, and ideally everything else. Also remove the sales tax on gold, silver, and ideally any other product that organically becomes popular as money. Visit our legislation page for more details.
The British pound might be the worst thing about being in the UK. It’s through inflation (monetary confiscation) that the UK, the US, and many other deficit companies, I mean countries, stay afloat. We should be thankful the British want to stop the Scots from using the pound.
Money is simple. It’s the bankers who complicate the issue so they can use the money to take your wealth. What’s the longest running theatre in London? ……. The Bank of England.
UPDATE:
A related article points out that Scotland, like any country, can still use the British pound, as Panama uses the Federal Reserve “dollar.” The UK officials are really saying the Bank of England won’t bail out their banks. This is more good news since a mis-managed bank should fail and bail outs are done with newly created “pounds” that steal value from all existing currency.
Bloomberg BusinessWeek reports that the iPhone 5S Gold is accepted as payment by people around the world. The actual phone is the payment, not some digital bits on the phone. A recipient then either uses the phone as a personal phone or sells the phone at the higher local price. This usually happens with phones bought in the US and sold elsewhere.