Eskoziar batek (Derek Henry) dioena Diru Teoria Modernoaz

(In Bill Mitchell-en Oh Scotland, don’t you dare! – Part 2:



Derek Henry says:

Tuesday, June 5, 2018


Commercial banks will create the new Scottish Currency from thin air like they always do. Loans create deposits.

The key issue is what you allow the banks to do. That is back to the days of boring bolwer hat banking. You tell the banks what they can do not what they can’t because they always find a way around that.

The beauty of an newly independent nation is you set the rules from the get go. Part of that is you reign in the commercial banks. To do that your new central bank that you’ve created allows them to go bankrupt and there will be no socialising of any losses.


Derek Henry says:

Tuesday, June 5, 2018

My biggest concern if Scotland ever became independent is once the correct structure is in place they will hire the wrong people to manage that structure.

For me what is really important is that you need the right people in place that know how to run a central bank in the correct manner. That means not hiring from the usual pool of suspects.

It is imperative that the government of the day get MMT’rs to run the central bank and the treasury otherwise the whole thing will be doomed to fail from the start. Which means they have to hire from the Universities that produce MMT students.

It is very easy to imagine a situation where these institutions get hijacked politically as we’ve seen all over the world by the likes of a Carney or a Draghi. That will not support the nation but vested interests that will be ideologically driven.

This could happen at the start during the interview process or whenever a poltical party gains power and changes the people at the controls.

Something has to be put in place to stop these institutions from being hijacked. Which could be very difficult since the right way to do it is bring the Central bank back under control as a consolidated sector with the Treasury. Which makes the government of the day more accountable and responsible at the ballot box.

How many times have we seen neoliberals hijack these structures for their own needs. Yes, they could be voted out the next time around but the damge they can do can last for decades. It’s a huge problem nearly every country experiences.

I’m nor sure what the answer is for this in the democratic society we have today. When those who control the narrative and the media normally win.


Derek Henry says:

Tuesday, June 5, 2018

What the world needs is the online MMT university and MMT universities producing a large pool of people who know how to….

a) Manage a floating exchange rate.

b) Manage a central bank.

c) Manage a Treasury.

d) Experts in the Sectoral balances.

Etc, etc, etc

We need these people coming through now in decent numbers. The next generation of MMT economists that have the skills to take up these roles when asked. Teams of people who know how to run a country.

That can accept the responsibilty and pass down the knowledge to the next generations once the original MMT’rs are enjoying their well deserved retirement.

Which again will be difficult as I would imagine alot of them not getting the chances they deserve and being lured to the bright lights of the city and the big banks.


Derek Henry says:

Tuesday, June 5, 2018


It’s probably more simple than that. The SNP have no idea how the monetary system operates. That is pretty clear in my opinion. Just from Nicola’s comments alone you can see she simply doesn’t get it.

The people they ask for advice are the usual Oxbridge, Ivy league economists that have been brainwashed in nonsense. The business School, banking set have their finger prints all over it.

They walked into every trap set by the Smith Comission and playing about with taxes was a huge mistake when you don’t control your own currency.

The common Weal are trying and have made huge strides over the last few years. However, we are all just falling short of winning the economic arguement.

This is a step in the right direction and we all just have to keep applying the pressure on the SNP until they get it and start listening to us. We even have certain Scottish MP’s who are now following Stephanie’s twitter feed all of which can only be a good thing.

A change of Paradigm takes time and I think we are seeing the start of that process. Then you see a change at the ballot box.

Take Italy for example. MMt’rs have been camped over there for at least 5 years now and generated huge interest with the MMT summit in Rimini. The Italians now know how to go back to the Lira the correct way and it shows at the ballot box.

These things take time.

Scotland needs a MMT summit similar to what’s what’s been going on in Italy and we just need to keep on applying the pressure.

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