Did you just notice that the ONS says we have half a trillion less foreign exchange than we thought we had?
This is not because they have changed the way they count things. This is because it has leached away and because we have mismanaged both our economy and finances for years. If you think it doesn’t matter think again. The Brexit situation with this scenario will mean the GBP/EUR rate falling dramatically, probably another 15%.
Now in one way that’s good ( lower costs of exports) and possibly good for the FTSE as well ( all those foreign currency earners) but in another sense it’s an utter disaster. Why? Because it means our perceived credit worthiness will plummet, we have nothing to withstand any shocks, and finally, we probably won’t be getting any Euro influx to buy Gilts. If that goes we are back to domestic institutions – and they don’t have enough to cover the Budget deficits. Perforce the cuts that should have been made from 2010 will have to be made to stop HMG going bankrupt.
This is the UK problem but it is actually a worldwide problem. It’s one of the reasons Bitcoin has gained so much traction in the last year or so. It’s why people are regularly taking avoiding action in terms of domestic savings ( which just piles pressure on the problem).
We in Scotland are lucky. We already have our own Digital currency – Scotcoin. When in the 1930s the WIR currency basically saved Switzerland from bankruptcy, the global lack of liquidity was addressed in an innovative and substantial manner. We can do the same now in Scotland with Scotcoin. Avoid the drop in the external value of GBP and buy on https://exchange.scotcoinproject.com
