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B877 - Legal Tender Bill 2015 watch

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    What the hell is this?

    There is a complete and utter disregard of how dynamic exchange rates can change which means the prices of goods must be consistently rebalanced to keep them in equilibrium, a ridiculous feat. The problem doesn't really exist either, as tourists can simply exchange their currency for sterling, or as others have mentioned, pay by card. There is no explanation as to how this would supposedly reduce financial risks. There is no definition of "small business", which in the context of this bill is pretty important. If you have employers and employees being able to accept pay in Euros, that will also necessitate the establishment of a financial system that uses Euros, increasing the impact on the country from monetary policy outside that set by our own central bank.

    Unsurprisingly, it's a Nay.
    • Political Ambassador
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    2.3 is a bit funny, it's like saying that there is no obligation for a combination of £5 and £10 to be accepted and undermines the concept of legal tender

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    has it occurred to anyone that this bill would effectively make Britain join the euro?
    'Legal Tender' has a precise legal meaning, its not just about what money you use at tesco, its about the sterling economic zone.
    if this bill was passed, it would force a fixed euro/pound exchange rate.
    May i point out that the euro is not legal tender in switzerland for related legal/economic reasons.
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    At the risk of further ruining my economic credentials (I would like to point out I have never studied economics and would have no idea where to start)

    My thinking behind this is that it would lead to a situation where the government could essentially print as much pound sterling as it wants to pay off all of its debts and run the state without needing to borrow money and the public could just use the euro for everything so they aren't affected by the massive devaluation of teh pound.
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    (Original post by Aph)
    At the risk of further ruining my economic credentials (I would like to point out I have never studied economics and would have no idea where to start)

    My thinking behind this is that it would lead to a situation where the government could essentially print as much pound sterling as it wants to pay off all of its debts and run the state without needing to borrow money and the public could just use the euro for everything so they aren't affected by the massive devaluation of teh pound.
    Just quit now... seriously.
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    I'm just going to abstain because in all honesty?

    I don't really care.
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    (Original post by mobbsy91)
    Just quit now... seriously.
    This is a place for debate. Attack teh issue don't just skirt around it.
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    (Original post by Aph)
    At the risk of further ruining my economic credentials (I would like to point out I have never studied economics and would have no idea where to start)

    My thinking behind this is that it would lead to a situation where the government could essentially print as much pound sterling as it wants to pay off all of its debts and run the state without needing to borrow money and the public could just use the euro for everything so they aren't affected by the massive devaluation of teh pound.
    No this would simply make the problem mules worse. If we went using inflationary policies with the poind people would simply switch to euros makeing the pound redundant.
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    (Original post by United1892)
    No this would simply make the problem mules worse. If we went using inflationary policies with the poind people would simply switch to euros makeing the pound redundant.
    Yes, but as teh pound woudl still be legal tender it woudl have value that's the point I don't see why we can't use teh pound as almost a burner currency so long as people aren't hurt by it.
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    (Original post by Aph)
    Yes, but as teh pound woudl still be legal tender it woudl have value that's the point I don't see why we can't use teh pound as almost a burner currency so long as people aren't hurt by it.
    However if it would undermine our ability to use QE because if we're making the pound less valuable people woll switch to the euro. It wouldn't work and I don't think the rationale is that strong.
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    (Original post by United1892)
    However if it would undermine our ability to use QE because if we're making the pound less valuable people woll switch to the euro. It wouldn't work and I don't think the rationale is that strong.
    That the point... We want people to switch to the euro.
    And I would question wether QE works because as I recall 98% of the money will end up in the banks of teh super-rich.
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    (Original post by Aph)
    That the point... We want people to switch to the euro.
    And I would question wether QE works because as I recall 98% of the money will end up in the banks of teh super-rich.
    Thats not a good reason. Having the pound is an economic asset for us but this would undermine that.

    QE works as it encourages the banks to loan it out thus putting the money in peoples hands. Although there are alternatives which are less vunerable to hoarding. It can favour the richest but it does work when used properly.
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    Nay.

    Now I'm open to Britain joining the euro if and when the time is right, but having two currencies that are legal tender is ridiculous unless you decide to peg the pound the the euro.
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    This is a poor solution to a genuine problem. Clamping down on transaction fees would be a good reason for a bill, but this is madness.

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    (Original post by Aph)
    At the risk of further ruining my economic credentials (I would like to point out I have never studied economics and would have no idea where to start)

    My thinking behind this is that it would lead to a situation where the government could essentially print as much pound sterling as it wants to pay off all of its debts and run the state without needing to borrow money and the public could just use the euro for everything so they aren't affected by the massive devaluation of teh pound.
    Again, you are pushing the country to rely on monetary policy set by an external central bank. Needless to say, this is an incredibly bad idea.

    If you use sterling purely as a debt-repayment mechanism, you'll end in a hyper-inflationary spiral. If the government prints money purely to pay for the goods and services it needs to provide, the price of those goods and services will rise significantly as the value of the currency you're paying in has fallen dramatically. And then what do they do with the pounds they receive when everyone is using euros? You cant use and abuse a currency in this way.
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    (Original post by Aph)
    I would like to point out I have never studied economics and would have no idea where to start
    You astonish me, Sir!
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    (Original post by Aph)
    At the risk of further ruining my economic credentials (I would like to point out I have never studied economics and would have no idea where to start)

    My thinking behind this is that it would lead to a situation where the government could essentially print as much pound sterling as it wants to pay off all of its debts and run the state without needing to borrow money and the public could just use the euro for everything so they aren't affected by the massive devaluation of teh pound.
    I have enjoyed reading the hilariously idiotic ideas you've put forwards in this thread. Thank you for the amusement.

    Should I check back in future for further ideas to change the workings of something about which you have absolutely no understanding? I'd be keen to read a bill on improving the countrys education system from the perspective of someone who has been so badly let down by it.
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    (Original post by Potally_Tissed)
    I have enjoyed reading the hilariously idiotic ideas you've put forwards in this thread. Thank you for the amusement.

    Should I check back in future for further ideas to change the workings of something about which you have absolutely no understanding? I'd be keen to read a bill on improving the countrys education system from the perspective of someone who has been so badly let down by it.
    You should come by more often
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    Nay. I wouldn't mind a Bill which undervalued the Euro in these transactions - e.g. one which set the exchange rate permanently at .5 - but this is too much work for businesses to cope with. In any event, I think there's a decent argument that this counts as a barrier to trade and accordingly is contrary to EU law.
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    (Original post by Potally_Tissed)
    I have enjoyed reading the hilariously idiotic ideas you've put forwards in this thread. Thank you for the amusement.

    Should I check back in future for further ideas to change the workings of something about which you have absolutely no understanding? I'd be keen to read a bill on improving the countrys education system from the perspective of someone who has been so badly let down by it.
    Education is actually my forte, ideally I'd get rid of money and capitalism as both don't work. And I think that you will find that economics isn't taught in the education system ever.
 
 
 
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