Category Archives: Central Banking

Public Bank Option for an independent Scotland

HUMANITY vs INSANITY    23   Scotland   a New Political Paradigm   YouTube

Today Scottish voters will go to the polls to decide whether Scotland should become an independent country.


As video blogger Ian R. Crane colorfully puts the issues and possibilities:

[T]he People of Scotland have an opportunity to extricate themselves from the socio-psychopathic global corporatists and the temple of outrageous and excessive abject materialism. However, it is not going to be an easy ride . . . .

If Alex Salmond and the SNP [Scottish National Party] are serious about keeping the Pound Stirling as the Currency of Scotland, there will be no independence. Likewise if Scotland embraces the Euro, Scotland will rapidly become a vassel state of the Euro-Federalists, who will asset strip the nation in the same way that, Greece, Ireland, Portugal and Spain have been stripped of their entire national wealth and much of their national identity.

To achieve true independence, Crane suggests the following, among other mandates:

  • Establish an independent Central Bank of Scotland.
  • Issue a new Scottish (Debt Free) Currency.
  • Settle any outstanding debt with new Scottish Currency.
  • Take Scotland out of the EU.
  • Take Scotland out of NATO.
  • Establish strict currency controls for the first 3 years of independence.
  • Nationalize the Scottish oil & gas industry.
  • Re-take control of the National Health Service.
  • Establish a State Employment Agency to provide work/training for all able-bodied residents.

Arguments against independence include that Scotland’s levels of public spending, which are higher than in the rest of the UK, would be difficult to sustain without raising taxes.  But that assumes the existing UK/EU investment regime.  If Scotland were to say, “We’re starting a new round based on our own assets, via our own new bank,” exciting things might be achieved. A publicly owned bank with a mandate to serve the interests of the Scottish people could help give the newly independent country true economic sovereignty.

I wrote on that possibility in December 2012, after doing a PowerPoint on it at the Royal Society of Arts in Edinburgh. That presentation was followed by one by public sector consultant Ralph Leishman, who made the proposal concrete with facts and figures.  He suggested that the Scottish Investment Bank (SIB) be licensed as a depository bank on the model of the state-owned Bank of North Dakota. I’m reposting the bulk of that article here, in hopes of adding to the current debate.

From Revolving Fund to Credit Machine: What Scotland Could Do with Its Own Bank

The SIB is a division of Scottish Enterprise (SE), a government body that encourages economic development, enterprise, innovation and investment in business.  The SIB provides public sector funding through the Scottish Loan Fund. As noted in a September 2011 government report titled “Government Economic Strategy”:

[S]ecuring affordable finance remains a considerable challenge and further action is needed to ensure that viable businesses have access to the funding they require to grow and support jobs. The recovery is being held back by limited private sector investment – indeed, overall investment in the UK remains some 15% below pre-recession levels. Evidence shows that while many large companies have significant cash holdings or can access capital markets directly, for most Small and Medium-sized companies bank lending remains the key source of finance. Unblocking this is key to helping the recovery gain traction.

The limitation of a public loan fund is that the money can be lent only to one borrower at a time.  Invested as capital in a bank, on the other hand, public funds can be leveraged into nearly ten times that sum in loans.  Liquidity to cover the loans comes from deposits, which remain in the bank, available for the use of the depositors.  As observed by Kurt Von Mettenheim, et al., in a 2008 report titled Government Banking: New Perspectives on Sustainable Development and Social Inclusion from Europe and South America (Konrad Adenauer Foundation), at page 196:

[I]n terms of public policy, government banks can do more for less: Almost ten times more if one compares cash used as capital reserves by banks to other policies that require budgetary outflows.

In 2012, according to Leishman, the SIB had investment funds of £23.2 million from the Scottish government. Rounding this to £25 million, a public depository bank could have sufficient capital to back £250 million in loans. For deposits to cover the loans, the Scottish Government then had £125 million on deposit with private banks, earning very little or no interest.  Adding the revenues of just 14% of Scotland’s local governments would provide another £125 million, reaching the needed deposit total of £250 million.

The Model of the Bank of North Dakota

What the government could do with its own bank, following the model of the Bank of North Dakota (BND), was summarized by Alf Young in a followup article in the Scotsman. He noted that North Dakota is currently the only U.S. state to own its own depository bank.  The BND was founded in 1919 by Norwegian and other immigrants, who were determined, through their Non-Partisan League, to stop rapacious Wall Street money men foreclosing on their farms.

Young observed that all state revenues must be deposited with the BND by law.  The bank pays no bonuses, fees or commissions; does no advertising; and maintains no branches beyond the main office in Bismarck. The bank offers cheap credit lines to state and local government agencies. There are low-interest loans for designated project finance. The BND underwrites municipal bonds, funds disaster relief and supports student loans. It partners with local commercial banks to increase lending across the state and pays competitive interest rates on state deposits. For the past ten years, it has been paying a dividend to the state, with a quite small population of about 680,000, of some $30 million (£18.7 million) a year.

Young wrote:

Intriguingly, North Dakota has not suffered the way much of the rest of the US – indeed much of the western industrialised world – has, from the banking crash and credit crunch of 2008; the subsequent economic slump; and the sovereign debt crisis that has afflicted so many. With an economy based on farming and oil, it has one of the lowest unemployment rates in the US, a rising population and a state budget surplus that is expected to hit $1.6bn by next July. By then North Dakota’s legacy fund is forecast to have swollen to around $1.2bn.

With that kind of resilience, it’s little wonder that twenty American states, some of them close to bankruptcy, are at various stages of legislating to form their own state-owned banks on the North Dakota model. There’s a long-standing tradition of such institutions elsewhere too. Australia had a publicly-owned bank offering credit for infrastructure as early as 1912. New Zealand had one operating in the housing field in the 1930s. Up until 1974, the federal government in Canada borrowed from the Bank of Canada, effectively interest-free.

. . . From our western perspective, we tend to forget that, globally, around 40 per cent of banks are already publicly owned, many of them concentrated in the BRIC economies, Brazil, Russia, India and China.

Banking is not just a market good or service.  It is a vital part of societal infrastructure, which properly belongs in the public sector.  By taking banking back, local governments could regain control of that very large slice (up to 40 per cent) of every public budget that currently goes to interest charged to finance investment programs through the private sector.

Recent academic studies by von Mettenheim et al. and Andrianova et al. show that countries with high degrees of government ownership of banking have grown much faster in the last decade than countries where banking is historically concentrated in the private sector.  Government banks are also LESS corrupt and, surprisingly, have been MORE profitable in recent years than private banks.

Young wrote:

Given the massive price we have all paid for our debt-fuelled crash, surely there is scope for a more fundamental re-think about what we really want from our banks and what structures of ownership are best suited to deliver on those aspirations? . . .

As we left Thursday’s seminar, I asked another member of the audience, someone with more than thirty years’ experience as a corporate financier, whether the concept of a publicly owned bank has any chance of getting off the ground here. “I’ve no doubt it will happen,” came the surprise response. “When I look at the way our collective addiction to debt has ballooned in my lifetime, I’d even say it’s inevitable”.

The Scots are full of surprises, and independence is in their blood.  Recall the heroic battles of William Wallace and Robert the Bruce memorialized by Hollywood in the Academy Award winning movie Braveheart.  Perhaps the Scots will blaze a trail for economic sovereignty in Europe, just as North Dakotans did in the U.S.  A publicly owned bank could help Scotland take control of its own economic destiny, by avoiding unnecessary debt to a private banking system that has become a burden to the economy rather than a pillar in its support.

Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books, including the best-selling Web of Debt. In The Public Bank Solution, her latest book, she explores successful public banking models historically and globally. Her 200+ blog articles are at

First published on Global Research

SCOTLAND : A New Land of Opportunity? Ian R Crane offers final words of encouragement to the People of Scotland before their Historic vote for Independence; and discusses a new Political Paradigm for the remainder of the United Kingdom with Danny Bamping, founder of NoTa (None Of The Above).

No-Ta [The No-Thank-You Party] exists to encourage and energize all of the above and those millions of other voters that are now completely disillusioned by the other party’s and the existing hybrid ‘coalition’ that currently dictates to us, controls us and enslaves us. We exist to give real people, a real alternative option – one with real policies, and real people willing to represent them and do what is right for the people and our country.



Free or just pretend to be free in an independent Scotland?

First Minister of Scotland Alex Salmond met with Mark Carney, Governor of the Bank of England to discuss the creation of a sterling zone should Scotland gain independence, in which it would give Carney a huge say in shaping policy.

A badly rattled Alistair Darling and a calm John Swinney on Carney and currency   YouTube

Mark Carney Bank of England Governor & First Minister Alex Salmond

Salmond states in the video below that: “The Bank of England is independent, it doesn’t intervene in politics.”

This is an outright lie!

Richard McKenna, former president of the Midlands Bank of England said: “Those that create and issue the money and credit, direct the policies of Government and hold in their hands the destiny of the people”

The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based.

It was established to act as the English Government’s banker, and is still the banker for the Government of the United Kingdom.

Do read Banking – the Greatest Scam on Earth

Central banks are illegally created private banks that are owned by the Rothschild banking family.

The global monetary system is a huge Ponzi scheme.

Also in the video, Alistair Darling, leader of the ‘Better Together’ campaign clearly states that in order for the currency union to work Scotland would need to give away powers because the rest of the UK would have to agree to tax and borrowing.

No government can borrow money unless they are willing to surrender a considerable amount of control to the banker.

Government borrows from the banks and has to repay the loan, PLUS INTEREST.

To pay the loan and interest the Government tax the people.

Darling also stated that the people of Scotland were never asked if this is what they wanted, and he is right.

Salmond is steam rolling ahead making decision on the behalf of the Scottish people without debate.

It is the same with the EU decision.

He didn’t ask the people of Scotland.

Again, just steam rolling ahead and making the decisions for us.

So much for :

10599679_843742712303307_3337282476903988318_nSo, if Scotland and the Bank of England come to an agreement, and re-joins the EU, who do you think will be making the decisions about Scotland’s future?


We are slowly losing a grasp on any true independence  that could be achieved.

This is why we need to establish a People’s Parliament and prevent Alex Salmond and the Scottish government from making such decisions that will not benefit the people.

The banks caused the crash in 2008 and this is why severe austerity measures are implemented throughout the UK at this time and it is the every day working people, the unemployed, pensioners, the sick and disabled, even our children who are paying the price.

This is happening in the UK  now from having a central bank and EU membership.

What makes you think it will be any different for Scotland?

That’s not independence.

Do you want to be Free or just pretend to be free in an independent Scotland?

Alba gu bràth!



Banking – the Greatest Scam on Earth

A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates.


Central banks also usually oversee the commercial banking system of their respective countries.

In contrast to a commercial bank, a central bank possesses a monopoly on increasing the amount of money in the nation, and usually also prints the national currency, which usually serves as the nation’s legal tender.

Examples include the European Central Bank (ECB) and the Federal Reserve of the United States.

The central banking system is a scam.

At  the beginning of 2000, there were only seven countries without central banking: Afghanistan, Iraq, Sudan, Libya, Cuba, North Korea and Iran and the main reason they are under attack is they do not have a Rothschild owned Central Bank.

In 2011 the only three countries left without a central bank are: Cuba, North Korea and Iran.

Rothschild owned Central Bank:

Central banks are illegally created private banks that are owned by the Rothschild banking family.

The family has been around for more than 230 years and has slithered its way into each country on this planet, threatened every world leader and their governments and cabinets with physical and economic death and destruction, and then emplaced their own people in these central banks to control and manage each country’s pocketbook.

Worse, the Rothschild’s also control the machinations of each government at the macro level, not concerning themselves with the daily vicissitudes of our individual personal lives. Except when we get too far out of line.FourWinds 10

Give me the right to issue and control a nation’s money and I care not who governs the country.” –  International Banker, Meyer Amschal Rothschild.


scotlandIt is a sad fact that the government do not run this country, the bankers do. They are in control of everything.

Government borrows from the banks and has to repay the loan, PLUS INTEREST.

To pay the loan and interest the Government tax the people.

The banks cannot lose because they have the taxes of the people as security for their loans.

This will add to the increasing debt to the banks and putting them in a very powerful position of authority over the government which then in turn gives them control of government policies like immigration,  free trade, multiculturalism and a lot more besides.

No government can borrow money unless they are willing to surrender a considerable amount of control to the banker.

Richard McKenna, former president of the Midlands Bank of England said, “Those that create and issue the money and credit, direct the policies of Government and hold in their hands the destiny of the people”

“Governments do not govern, but merely control the machinery of government, being themselves controlled by the hidden hand.” – Former British Prime Minister, Benjamin Disraeli.

They fund two sides of  every ‘war’ and they also want a ‘cashless’ society.

Banks are corrupt to the very core.

We need to get rid of the bankers.

And jail them.

Here in the U.K. the banks caused the problem but it was the  taxpayer that bailed them out and then they reward themselves (bankers) with millions in bonuses and still had the audacity to hike up the interest rates and bank charges of £30.00 for being 1p overdrawn.

Would you rather have had the bankers jailed instead of the taxpayer being forced to bail them out?

Of course you want to see them in jail.

“The international bankers swept statesmen, politicians, journalists and jurists all to one side and issued their orders with the imperiousness of absolute monarchs.”  – Former British Prime Minister, Lloyd George .

With independence we will still be in debt to the bankers and the IMF.  The global monetary system is a huge Ponzi scheme and Alex Salmond also knows this and will not issue a Scottish sovereign currency but will continue to ‘borrow’, serving the bankers interest.

The Libor scandal was a series of fraudulent actions connected to the Libor (London Interbank Offered Rate) and also the resulting investigation and reaction. The Libor is an average interest rate calculated through submissions of interest rates by major banks in London.

The scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were. Libor underpins approximately $350 trillion in derivatives. It is administered by NYSE Euronext, which took over running the Libor in January 2014.

The banks are supposed to submit the actual interest rates they are paying, or would expect to pay, for borrowing from other banks. The Libor is supposed to be the total assessment of the health of the financial system because if the banks being polled feel confident about the state of things, they report a low number and if the member banks feel a low degree of confidence in the financial system, they report a higher interest rate number.

In June 2012, multiple criminal settlements by Barclay’s Bank revealed significant fraud and collusion by member banks connected to the rate submissions, leading to the scandal.

‘The Money Scam is hidden right out in the open, yet buried in complication and confusion. A retired banker describes simply, the world’s Money Scam and the reason every country is now going bankrupt. Private bankers have stolen the money creation process, and whereas once our money was created by the governments, debt-free, it is now created out of thin air and issued as debt with interest charges.

In today’s banker controlled world, money = debt, debt = slavery and therefore money = slavery – our monetary systems have become systems of enslavement. Money is created out of nothing, issued as debt, not enough money is created for the future interest payments and inflation steals our savings. The money creation process should be taken away from the banks and given to the governments who can create money debt-free, interest-free. This is how it used to be done and we needed no income taxes.’

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. – Thomas Jefferson(Attributed)


The bankers have to go.

Scotland needs its own currency.

In Iceland four former bank chiefs have been jailed for fraud – the sentences go as far as five years behind bars.

They’re accused of concealing that a Qatari investor bought a stake in their firm, using cash lent from the bank itself – illegally. The deal took place just ahead of the collapse of the bank due to huge debts.

RT talks to economic expert Charlie McGrath, founder of news website Wide Awake News about Iceland’s economy. (Video: Dec: 2013)