The concept of money is inevitably going to have to change. The reason for this is simple. There is no money. And that’s a secret hidden in plain sight.
The “money” you have in your pocket is a token. If you look at any notes you have, they say “I promise to pay the bearer…”, but what would happen if you turned up to collect your equivalent in sterling? Maybe you should try ![]()
http://en.wikipedia.org/wiki/Sale_of_UK_gold_reserves,_1999–2002 << Have a look at how the UK reserves were sold off. And that was just the start. Then came Quantitative Easing… http://www.bbc.co.uk/news/business-15198789 It’s worth having a look at the Beeb’s guide, especially how this is done not by “printing” notes, but by pressing a button to change their balance sheet, and how “theoretically” this imaginary cash is destroyed at some future date….
But this shouldn’t be any surprise. If you get paid, you probably don’t get cash. If you bought or sold a house or car, you probably never saw any cash, it was all done by someone pressing a button {I’ll expand on how the Banks etc. finance mortgages in another post}.
What we think of as money is actually confidence. We generally speaking have confidence that the notes in our pocket or balances in our accounts have a value that we can calculate – how many loves of bread in can buy. If we don’t have confidence that these tokens will buy roughly what we think they will, then we have a real problem. Whatever we use to get these tokens {usually our labour} is devalued. We might even conclude that we would require some other recompense than these tokens. That would be bartering.
So, like the Emperor's new clothes, we ignore this secret that is hidden in plain sight.
For the most part, if we all agree to accept this system of exchanging value {from labour, ideas, invention to somewhere to live and something to eat} then that is fine.
But what happens in a situation like Scotland is facing, with the prospect of Independence? Well, clearly, confidence is King. How confident not just Scots are in the “new” currency, but how confident every other Country will be in the “new” currency too.
I reckon that’s well worth thinking about.