In this thread I voted for ‘OUT’! Will it work? No! It would be an economic disaster as the £, whilst it is a sovereign currency, is also one of the Worlds reserve currencies. In short the UK buys goods from abroad and their suppliers accept £’s as payment, but the £ is not money it is a currency.
Is there a difference? Yes! Look up ‘money’ in a dictionary, then look up ‘
currency’. They are similar in most functions but with one small but very significant difference. Money is .......‘
A store of value over time’ currency is not, as it is nothing more than an IOU. i.e. one ounce of gold will always be worth one ounce of gold ...... but you will need more and more IOU’s to buy an ounce of gold. Gold holds its value over time whilst currency’s purchasing power declines over time .... often very rapidly!
Effectively ..... the UK buys s goods form others with an IOU, European countries do the same with the Euro as does the USA with the US dollar. They all buy goods with something their Central Banks create out of nothing! If, like CBBB (Spanner)you are a bit slow on the uptake
and you have difficulty accepting or understanding this fact, then read this explanation and ...... if you work at it, you will understand what I am saying.
Economics professor Richard Werner – the creator of quantitative easing – noted in September (2014) “
........ that the field of economics has been lost in the woods for an entire century because it has failed to understand how banks actually create money.”
http://www.blacklistednews.com/A_Loophole_Allows_Banks_%E2%80%93_But_Not_Other_Companies_%E2%80%93_to_Create_Money_Out_of_Thin_Air/48338/0/38/38/Y/M.htmlIMO: The decision as the whether the UK stays IN or leaves the EU ...... has already been made!
It has already been decreed by The Bankers, those that manipulate the Worlds financial system(
well most of at .... at the moment!) . The evidence? Look at your TV News channels. The £ is at a 14 year low against the dollar. This is a shot across the bows of those contemplating a BRexit. The Bankers are giving a demonstration of their level of control and a warning as to what will happen if the UK votes to leave the EU.
However........
The same does not
(did not) apply to either Greece or Cyprus and Varoufakis knew this, which is why Tsipras had to ‘...
let him go.’ When each had a sovereign currency the Central Bank created it, just like the ECB does now, out of nothing. The government(s) spent the money into circulation. Then it was re-collected through various taxes and they spent it again .... and again ..... and again. Otherwise, known as a perpetual currency. If they needed more to top the circulation up, they electronically created more and it was all free of debt.
Then both counties decided they wanted to be' Real' Europeans and joined the Euro club (Zone), the biggest mistake they ever made in their histories. Now, when they need more money to run the economy .....
they have to BORROW it from the ECB. And where did the ECB get the Euro’s they were now borrowing .... from the same place they got their Drachma’s and Cyprus Pounds from ....... thin air!!!!
They took the bait and the banks just reeled them in. They have done the same with all countries in the Euro zone but being bigger it has taken longer to take effect, but the banks are reeling them in, just more slowly. The taxes GR/CY originally collected to put back into the system are now increasingly used to repay the loans .... plus the interest. The short fall, between income and expenditure, was made up by more borrowing. Who do they borrow from? The same banks that loaned them the original debt. So they borrow to repay the their debt plus any interest to the very same bank ..... the debt gets even bigger!
Now keep going with that and of course you rapidly approach the point where government income is virtually zero as most of the tax money goes to the banks to repay their debt. Is this a problem? NO! At least not for the bankers, because the same banks will lend them even more knowing full well it costs them nothing and the borrowers can NEVER repay the debt!
When The country is up to its eyeballs in debt ..... the banks want their ‘
money’ back. Oh dear ..... they cannot pay, so the banks do what they do with any non-performing loan (
does this sound familiar?) they seize the collateral (
Asset Backed Securities) ......... like selling off all the countries utilities. They have just very cleverly turned ‘
money’ they never had .............. into wealth. Your countries wealth now becomes theirs.
As a sovereign State, you have been well and truly shafted! You are now up sh*t creek without a paddle ..... you are owned by the banking and financial system!
That is just the beginning of the story and purely at a local level ................ it gets even more bizarre!
