Well done for saying this. I hope you include an item on GB News about it.
There is an issue that you don't mention in relation to coin clipping. It eventually becomes obvious that coins are getting smaller. I have only seen this mentioned in the Roman Empire and I understand people returned to exchanging good directly. I believe Henry VIII was at it as well but I only know about this because I read that Elizabeth I restored the value of the currency.
Now we do not know the difference between a note that has real value because it results from us producing something and a counterfeit note produced by the government.
Coin clipping was engaged in to such an extent by the Jews in medieval Britain that it led Edward the First to expell them in 1290,known as the statute of Jewry.They were only allowed back by Cromwell as he needed finance for the New Model Army,he even suggested to the leader of European Jews at the time , one Menasseh Ben Israel,that they could have St Paul's cathedral as their central synagogue.Up until recently one could read this correspondence held at the British Museum.When I applied years ago I was told you had to now have permission from the Home Secretary!!!!
Well said, Sir Jacob. These Boaty McBoatface opportunities have to stop.
I recall Scotland decided to put American golfing champ Jack Nicklaus on their 5 note. 2005 I think? My family and I were flabbergasted. And we liked golf. We couldn't believe Jack agreed. You'd think he'd decline and suggest a Scot. No one wants golfers on their money. In any country. They want solidity via history.
When discussing this Nicklaus surprise, many things came up. Like who else.
We had much respect for Sir Jackie Stewart and thought if he was asked, he would be Scottish enough to turn it down and ask if William Wallace or Robert the Bruce were on the contenders' list.
Jack N. was an incredible golfer, but as a citizen of America, his face on the fiver made Scotland look silly.
Enough about the best golfer of all time.
We (in the US) had a kerfuffle around 1976. The US government decided to re-introduce and push the two dollar bill. $2. This caused chaos. Every single cash register in America had slots for bills of 1,5,10,20, and 50 denominations. No room for 2's.
Well, not chaos. Mildly annoyed. We could not get too mad. Thomas Jefferson was the guy on the new two dollar bill.
JRM's latest commentary on Bank of England banknote design reveals fundamental misunderstandings about how modern monetary systems work. His arguments collapse under basic economic scrutiny.
The "Fiat Fiction" Fallacy
JRM frames fiat currency as fraudulent "connivance" between governments and central banks. This is economically illiterate. Fiat money derives value from tax obligations and legal tender laws, not aesthetic trickery or gold backing. The promise to pay refers to legal tender status, not precious metal conversion.
Gold Standard Nostalgia
JRM romanticizes the pre-1914 gold standard as stable and reliable. This ignores historical reality: the gold standard period included severe deflationary crises like the Long Depression (1873-1896), frequent financial panics, and mass unemployment. Gold convertibility was suspended multiple times during financial emergencies because the system was unworkable when most needed.
The Purchasing Power Red Herring
JRM's claim that the pound lost "99% of its value" since 1914 is meaningless without context. Nominal price changes over 110 years ignore wage growth, productivity gains, and living standards improvements. Real wages have increased dramatically since 1914 despite currency changes. His gold comparison ignores that gold prices are artificially inflated by speculative demand.
Quantitative Easing Misunderstanding
JRM characterizes post-2008 and COVID money creation as reckless "money printing." In reality, quantitative easing prevented deflationary collapse during demand shortfalls. Both episodes saw low inflation despite monetary expansion because economic output collapsed. Government spending is constrained by real resources, not artificial money limits.
The "Confidence Fairy" Theory
JRM's central claim—that currency design affects economic value—has zero empirical support. He attributes magical properties to royal imagery and "authoritative" designs that exist nowhere in monetary economics literature. Inflation results from resource constraints and demand-supply imbalances, not banknote aesthetics.
Countries with diverse currency designs (Canada, Australia, Switzerland) maintain stable currencies through competent monetary policy, not cultural conservatism. The Euro, despite JRM's aesthetic objections, functions as a stable reserve currency used globally.
Historical Illiteracy
JRM conflates medieval coin clipping with modern monetary policy—completely different phenomena operating under entirely different institutional frameworks. Royal imagery on historical coins served political purposes (demonstrating territorial control), not monetary value. Alexander's coins worked because of military power, not portraiture.
The Real Story
Britain's economic challenges stem from Brexit uncertainty, productivity stagnation, and fiscal austerity policies—not banknote design changes. JRM scapegoats currency aesthetics for deeper structural problems while displaying stunning ignorance of how monetary systems actually function.
His "confidence fairy" narrative—that currency value depends on impressive designs rather than economic fundamentals—belongs in fantasy literature, not serious economic discussion. No credible economist would argue that banknote imagery determines monetary stability.
Bottom Line
JRM's argument represents pure cultural grievance masquerading as monetary analysis. His claims about currency design affecting economic performance are unsupported by evidence and contradict basic principles of modern monetary theory. The Bank of England's mandate involves price stability and financial system oversight—not pandering to aesthetic traditionalism.
I well remember the last time I visited Moscow (the Soviet Union as it then was)The Kopek had become so devalued ,the metal being worth more than the coin,which was the lowest denomination anyway,was being produced in plastic.
A fascinating article as usual.Thankyou.I totally agree what is on the agenda is more political correctness,but wasn't this the case when years,literally,years after the end of the second world war, Churchill was placed on the £5 note .The Brexit government cynically reminding people how "Plucky little Britain fought off the wicked Nazis and fascists".I've always thought it was a piece of propaganda .I get rid of my £5 notes as quickly as possible (not difficult in this country )often saying"Have a Mussolini",someone even said to me once"I wondered who that was "!!!
I have some suggestions, as we can nominate events as well, it seems.
1)1290 the expulsion of the Jews from this country ,cleansing us from Jewish usury.Thankyou Edward the First.
2) The execution of Charles the first.(Not brutal murder as Sir Jacob Would describe it.As he did that of Louis XvI and Marie Antoinette recently.Aux armes citizens.Vive la France.I hope Macron thought at the state banquet we got rid of all this parasitical rubbish years ago )
3)11th August 1596 Good Queen Bess expelled the blacks,stating in the act of the Privy council."Her Majestie,understanding that there are divers Blackamoors brought into this Realme,of which kinde of people there are already too manie, considering how God has blessed this land with great increase of people of or own nation ....those kinde of people should be sent forth of the land."
FINE historical examples of when rulers governed in the interests of the people and acted accordingly when faced with threat and pestilence in their interests and for their good.
P S I did notice at the banquet menu there was a Cuvee Evremonde.I have a fascinating book called the letters of St Evremonde , published 94 years ago .He was the man who introduced champagne to England .Beautiful language in it and I feel sure Dickens must have appropriated it for his notorious Marquis in "A tale of two cities".Taittinger are doing a joint venture in Canterbury,Evremonde I believe is one of Taittingers'ancestors.£55 per bottle but I must say an excellent and diplomatic choice for such an occasion.
Well done for saying this. I hope you include an item on GB News about it.
There is an issue that you don't mention in relation to coin clipping. It eventually becomes obvious that coins are getting smaller. I have only seen this mentioned in the Roman Empire and I understand people returned to exchanging good directly. I believe Henry VIII was at it as well but I only know about this because I read that Elizabeth I restored the value of the currency.
Now we do not know the difference between a note that has real value because it results from us producing something and a counterfeit note produced by the government.
Coin clipping was engaged in to such an extent by the Jews in medieval Britain that it led Edward the First to expell them in 1290,known as the statute of Jewry.They were only allowed back by Cromwell as he needed finance for the New Model Army,he even suggested to the leader of European Jews at the time , one Menasseh Ben Israel,that they could have St Paul's cathedral as their central synagogue.Up until recently one could read this correspondence held at the British Museum.When I applied years ago I was told you had to now have permission from the Home Secretary!!!!
Very interesting.
Thanks Alan ,glad you enjoyed it .Best wishes.
Well said, Sir Jacob. These Boaty McBoatface opportunities have to stop.
I recall Scotland decided to put American golfing champ Jack Nicklaus on their 5 note. 2005 I think? My family and I were flabbergasted. And we liked golf. We couldn't believe Jack agreed. You'd think he'd decline and suggest a Scot. No one wants golfers on their money. In any country. They want solidity via history.
When discussing this Nicklaus surprise, many things came up. Like who else.
We had much respect for Sir Jackie Stewart and thought if he was asked, he would be Scottish enough to turn it down and ask if William Wallace or Robert the Bruce were on the contenders' list.
Jack N. was an incredible golfer, but as a citizen of America, his face on the fiver made Scotland look silly.
Enough about the best golfer of all time.
We (in the US) had a kerfuffle around 1976. The US government decided to re-introduce and push the two dollar bill. $2. This caused chaos. Every single cash register in America had slots for bills of 1,5,10,20, and 50 denominations. No room for 2's.
Well, not chaos. Mildly annoyed. We could not get too mad. Thomas Jefferson was the guy on the new two dollar bill.
You want a real national hero on your money.
Fact-Checking JRM's Currency Design Claims
JRM's latest commentary on Bank of England banknote design reveals fundamental misunderstandings about how modern monetary systems work. His arguments collapse under basic economic scrutiny.
The "Fiat Fiction" Fallacy
JRM frames fiat currency as fraudulent "connivance" between governments and central banks. This is economically illiterate. Fiat money derives value from tax obligations and legal tender laws, not aesthetic trickery or gold backing. The promise to pay refers to legal tender status, not precious metal conversion.
Gold Standard Nostalgia
JRM romanticizes the pre-1914 gold standard as stable and reliable. This ignores historical reality: the gold standard period included severe deflationary crises like the Long Depression (1873-1896), frequent financial panics, and mass unemployment. Gold convertibility was suspended multiple times during financial emergencies because the system was unworkable when most needed.
The Purchasing Power Red Herring
JRM's claim that the pound lost "99% of its value" since 1914 is meaningless without context. Nominal price changes over 110 years ignore wage growth, productivity gains, and living standards improvements. Real wages have increased dramatically since 1914 despite currency changes. His gold comparison ignores that gold prices are artificially inflated by speculative demand.
Quantitative Easing Misunderstanding
JRM characterizes post-2008 and COVID money creation as reckless "money printing." In reality, quantitative easing prevented deflationary collapse during demand shortfalls. Both episodes saw low inflation despite monetary expansion because economic output collapsed. Government spending is constrained by real resources, not artificial money limits.
The "Confidence Fairy" Theory
JRM's central claim—that currency design affects economic value—has zero empirical support. He attributes magical properties to royal imagery and "authoritative" designs that exist nowhere in monetary economics literature. Inflation results from resource constraints and demand-supply imbalances, not banknote aesthetics.
Countries with diverse currency designs (Canada, Australia, Switzerland) maintain stable currencies through competent monetary policy, not cultural conservatism. The Euro, despite JRM's aesthetic objections, functions as a stable reserve currency used globally.
Historical Illiteracy
JRM conflates medieval coin clipping with modern monetary policy—completely different phenomena operating under entirely different institutional frameworks. Royal imagery on historical coins served political purposes (demonstrating territorial control), not monetary value. Alexander's coins worked because of military power, not portraiture.
The Real Story
Britain's economic challenges stem from Brexit uncertainty, productivity stagnation, and fiscal austerity policies—not banknote design changes. JRM scapegoats currency aesthetics for deeper structural problems while displaying stunning ignorance of how monetary systems actually function.
His "confidence fairy" narrative—that currency value depends on impressive designs rather than economic fundamentals—belongs in fantasy literature, not serious economic discussion. No credible economist would argue that banknote imagery determines monetary stability.
Bottom Line
JRM's argument represents pure cultural grievance masquerading as monetary analysis. His claims about currency design affecting economic performance are unsupported by evidence and contradict basic principles of modern monetary theory. The Bank of England's mandate involves price stability and financial system oversight—not pandering to aesthetic traditionalism.
I well remember the last time I visited Moscow (the Soviet Union as it then was)The Kopek had become so devalued ,the metal being worth more than the coin,which was the lowest denomination anyway,was being produced in plastic.
A fascinating article as usual.Thankyou.I totally agree what is on the agenda is more political correctness,but wasn't this the case when years,literally,years after the end of the second world war, Churchill was placed on the £5 note .The Brexit government cynically reminding people how "Plucky little Britain fought off the wicked Nazis and fascists".I've always thought it was a piece of propaganda .I get rid of my £5 notes as quickly as possible (not difficult in this country )often saying"Have a Mussolini",someone even said to me once"I wondered who that was "!!!
I have some suggestions, as we can nominate events as well, it seems.
1)1290 the expulsion of the Jews from this country ,cleansing us from Jewish usury.Thankyou Edward the First.
2) The execution of Charles the first.(Not brutal murder as Sir Jacob Would describe it.As he did that of Louis XvI and Marie Antoinette recently.Aux armes citizens.Vive la France.I hope Macron thought at the state banquet we got rid of all this parasitical rubbish years ago )
3)11th August 1596 Good Queen Bess expelled the blacks,stating in the act of the Privy council."Her Majestie,understanding that there are divers Blackamoors brought into this Realme,of which kinde of people there are already too manie, considering how God has blessed this land with great increase of people of or own nation ....those kinde of people should be sent forth of the land."
FINE historical examples of when rulers governed in the interests of the people and acted accordingly when faced with threat and pestilence in their interests and for their good.
P S I did notice at the banquet menu there was a Cuvee Evremonde.I have a fascinating book called the letters of St Evremonde , published 94 years ago .He was the man who introduced champagne to England .Beautiful language in it and I feel sure Dickens must have appropriated it for his notorious Marquis in "A tale of two cities".Taittinger are doing a joint venture in Canterbury,Evremonde I believe is one of Taittingers'ancestors.£55 per bottle but I must say an excellent and diplomatic choice for such an occasion.