Money Moves?

Money Moves?

With the worries of the consequences of Brexit, the trade war between US and China, the aftermath of 21/4 and the slowing down of tourism in Sri Lanka,financial anxiety has become a big part of our lives today.

We hear in UK of people living from paycheque to paycheque. People working three jobs to make ends meet and especially those on the dole or without work all over the world,money management is becoming more than a pastime.

The need to talk about money and understand how it works has been forced on us. The tough thing when it comes to money is that we can akways find something to worry about. 
Why? Because our money and its purchasing power is never perfect. Because money is still so private,many people prefer to avoid talking about it.

People and nations are paying off insurmountable mountains of debt. 

Money can be incredibly stressful.But,it is possible also to create a healthy relationship with money and recognise it as merely a tool to help create the life we want.

What gives money power?    

In order to understand this issue we have to define two terms in our mind,one is value and the other is buying power. 

Value comes in two varieties, similar to sweet and sour. There is intrinsic value and relative value. A British Pound is a pound and will always be a pound?

Whereas a pound weight of say, sugar is relative to a measurement of cost value. A pound weight of sugar say 10 years ago did not cost as much as it does today. This is because the British Pound Sterling currency represents relative value.

This relative value is commonly referred to as "buying power". Whereas,intrinsic value is set through the market forces of supply and demand.

The clamour now is for a cashless society 

UK wanted to get rid of the one penny and tuppence,2p coins from circulation,as these copper coins are worth more than their relative value.But on second thought the Chancellor of the Exchequer has decided otherwise,due to clamour from small businesses and rural folk.

In 2007 cash accounted for 61% of total transactions.In 2017,this has reduced to 34% of 13 million transactions in the UK.
                                                     

 
"A cashless society is an economic state where financial transactions are not conducted with money in the form of physical banknotes and coins, but rather through the transfer of digital information  electronically between transacting parties."

The earliest cashless business was based on barter or other methods of exchange of goods and services, which was replaced by physical exchange of paperless currency,such as  seashells, hammered metals, where trade even took the form of exchange of animals or belongings of animals such as animal fur,skins or ivory. 

In more recent times,the use of digital currencies such as Bitcoin and the  Blockchain technology, is replacing currency money.

ABBA, the Swedish band has been singing about "Money,Money, Money" and taking in truck loads of it along the way. But,last year only 13 % of Swedes,a high technology people hardly could remember using cash for a purchase of goods and services.Sweden will become the first cashless society in 2023.

In a society where cash is replaced by its digital equivalent, and peer to peer payments will be  made by "messaging apps"  a revolution is in the making.

In England and Wales, the legal tender money will continue to exist,will be recorded,will be exchanged not only in its electronic form in commerce, investment and in daily life, but also in money currency.However, to add to the confusion, how many Sri Lankans know that Scottish banknotes are not legal tender in Scotland?

Currency and Money

The difference between Currency,Money and Legal Tender is often not clear. 

Currency is a generally accepted form of money,including coins and paper notes,which is issued by an organisation, a State government, a bank and circulated within an economy. It is used as a medium of exchange for goods and services. Currency is the basis for trade and business.

Money is any item of verifiable record that is generally accepted as payment for goods and services and for repayment of debts,such as taxes to government,or social economic obligations. 

The main function of money as is learned, is as a medium of exchange,a unit of account,a store of value and sometimes,a standard of deferred payment. Any item, or a verifiable record that fulfills these functions can or may be considered as money.                                       

What is Legal tender?

We are told that Scottish Banknotes are legal currency in England, but are not legal tender. Also, Bank of England currency notes are only legal tender in England and Wales.

No Bank notes are classed as legal tender in Scotland and the Royal Mint explains the phrase in a narrow technical term referring to the settlement of debts and in ordinary transactions both parties can agree to accept "any form of payment." 

To make it more complicated Alistair Carmichael, M.P. has lodged a new bill in the House of Commons calling for Scottish Bank notes to be accepted throughout the UK. 

This Legal Tender (Scottish Banknotes) Bill would mean no distinction could be drawn between Scottish banknotes and other currency notes in the UK as forms of payment. 

In 2009 an attempt to legislate for Scottish banknotes to be accepted throughout the UK was made by the current Scottish Secretary,David Mundall, in his Scottish Banknotes (Acceptability in the UK) Bill, but was not made law.  

How to stay in the know?

Legal tender is a medium of payment recognised by a legal system. to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries,but legal tender is defined in different jurisdictions.

To add to the misery £1 and £2 coins are legal tender to any amount in UK, but you can only settle Court debts in coins of up to 20p in penny and tuppenny coins,up to £5 in 5p and 10p coins and up to £10 in 20p and 50p coins. There is a cash clamp in settling debt and now banks in England and Wales charge customers to accept bags of coins.

Victor Cherubim 

Bringing Communities Back

Bringing Communities back

Belonging is a part of community. But ever since the end of the civil war in Sri Lanka, communities seem to have withered away. Polarization of the Sinhala and Tamil and now the Muslim community is caused by the fear syndrome. Class,caste,religion and gender have been some of the ways people have been kept marginalised, separated and segregated.We now need to start to establish relationships which existed over time and which need to be enriched,

European Parliamentary Elections 2019

European Union elections and the wounded two main parties of Britain

The Brexit Party is only six weeks old (formed 12 April 2019) but it's deep impact on a power shift away from the centre with 28 seats at the election on 23 May 2019 for the European Parliament, is a change in the political landscape of Britain.

It has been an exciting vote for generations.We saw how politics has become polarised.

Trust in the two main parties in their ability to create change for the better in people's lives was seen in the result. Labour came third in the election. The Conservatives fared the worst in their defeat in 200 years.

Man of the night

Nigel Farage once leader of UKIP, now the live wire of the new Brexit Party said he is getting ready and could even win a General Election as  his Brexit Party sweeps to victory. He further said this is a massive message to both the major parties.

With a population of 400 million in 28 states of Europe,the European Parliamentary elections are for 751 seats, with UK having 73 seats in Brussels.

We have seen a monopoly of power of the centrist left and  centrist right parties being broken with the biggest turnout in 20 years. Turnout in this years' election was up by nearly 10 points compared with five years ago, the highest according to observers,with the young voting.. 

Traditionally large centrist parties (European Political Party -EPP) and the centrist left party (Social Democrats) have suffered significant losses as Greens, Liberals, and Populist nationalist parties  have gained ground in Brussels.

Although they have lost control,the Pro EU parties are still expected to be in a majority and will now need to seek alliances with other small parties like the Greens. 

President Macron's  Renaissance Alliance party in France was beaten by the National Rally party of Marine Le Pen.,

In Italy, Matteo Salvini's  Lega Nord party won the largest number of seats for the nationalists.

In Britain, Nigel Forage's,Brexit Party, won the popular vote.

While in Germany,the Green Party (Die Grunen) jumped to second place doubling its share of the vote with 20%, solidly beating the dominant Social Democrats.

The Greens also surged in Ireland and came second place in Finland,with the biggest gains in for the Greens in England and Wales from three to seven seats.
                                                     

   

Gains for the parties all over Europe was for pro Pro EU,for environmentalis,and left leaning appear  to have mostly been concentrated in urban areas and among younger voters.The gains for the ecologists come amid anti-climate change protests across Europe. 

What to watch out in Europe?

There is much speculation who will take over the Presidency of the European Commission from Jean Claude Juncker. The front runner is Germany's Manfred Weber, European People's Party.There are other contenders also running and if it is a choice of a woman candidate, the likely candidate is Mme Ska Keller, a German Green MEP. While Matteo Salvini,a Populist and Deputy Prime Minister of Italy and Head of the Lega Nord, an anti establishment party candidate may want to take control. His photo is not among the front runners as below.

What it means for the future of Europe?

A mixed picture can be seen for the future of Europe and for Brexit in England in the months and years to come. It will be a surprise if the Populist -Nationalists of the right parties in Europe, Matteo Salvini, Marine Le Pen and Nigel Farage can come together and take over control of Europe?

Victor Cherubim  
 

Do Muslims of Sri Lanka have a perceived image problem?

Do Sri Lankans  have a perceived image problem? 

People in Sri Lanka mistakenly associate Muslims with Islam. The fact is that Islam is a religion and Muslims are a people, many of whom are believers of Islam. It is easier to side with racists politicians who blame Muslims for everything.including the Easter Sunday bombings of Catholic Churches and posh Hotels in Colombo, Sri Lanka.

Yet there is a pattern of Easter attracts on Christians in countries where the majority of people profess Islam. In Egypt on Palm Sunday 2017,suicide bombers murdered 45 people in two Coptic Churches.In Pakistan in 2016, a suicide bomber killed 75 Christians celebrating Easter at a public park.In Nigeria,on Easter Sunday 2012, a suicide bomber killed 38 Christians outside a Church.Now in Sri Lanka,249 or more have succumbed to the Easter Sunday bombings in 3 Churches and 2 Hotels on 21 April 2019. 

Is there a pattern to these bombings? 

Can we blame the religion or do we blame the radicalism?

It is a well recognised fact that Christians and believers of Islam accept mankind as descendants of  Adam and Eve and for the fall of man from grace of the Almighty. Both Christian and Islam consider Moses,Abraham, Isaac, Jacob,Jesus as Prophets and Holy

Prophet Muhammad as the last Prophet. Both religions have much in common. Both religions believe in an after life, of a Heaven and a place of damnation as revealed by God to the Prophets through the messengers of God. Both religions also believe there is a judgement day  when mankind will be called to account for their misdeeds and thence celebrated or punished and banished by the Eternal, for eternity. Both religions also believe in the Mercy of God. 

If surely both religions profess the existence of life after death, of good over evil, of ethical living in this life, why is it that there is an innate antipathy? Can we really put the blame on religion or on those who are misguided and become fanatics? All religions, in my opinion, profess moral values. All religions,teach  punishment and mercy in their tenets. 

Is there a fault line in the interpretation rather than in the basis of the teachings of Christianity and Islam? Religious beliefs have always been seen,analysed and professed over time as a private matter between individuals and civilisations. Without privacy of religious worship,surely freedom dies? Without freedom of worship, life is just a shadow of what it ought to be? 

                                                              

Why are changing mindsets causing radicalisation?

Religion and radicalisation are two ends of the spectrum of life. Whilst forms of radicalisation been on the rise among young people in Guantanamo and in European prisons, life in prisons can be the incubator for religious fundamentalism? These ideologies have been explained as Islamism but in many cases there have nothing to do with religion or religious teaching. They have everything to do with violent and non-violent extremism. 

Radicalisation as a phenomenon cannot only be limited to a specific religion or an ideology. 

We have seen the following forms of radicalisation identified over many years.We have seen right wing extremism say the Neo Nazi and the skinheads. Then there is the left wing extremism in anarchism, say when World leaders have their summits around the world annually. Recently,we saw it in the Yellow Shirts in Paris? 

The reasons for extremism?

There is always some form of manipulation of extremism.There is the political manipulation of frustration, discrimination,humiliation,alienation and a serious feeling of injustice, which are some reasons.

Then there are these same reasons using religion in intentionally perpetrating violence as means to a political end. 

There is ambiguity between politics and using religion for political aims to try resolve contradictions in society.

Politicians borrow the common factors in every religion like authenticity, legitimacy and credibility of religion and religious beliefs for there own ends. Scientific arguments are lacking in this process of radicalisation. We see very rich and well educated elements in different strata of society being radicalised and fall a prey to misguided notions of salvation

or an easy solution to many of our problems?

We see weak governments fall an easy prey of these radical elements. When there is no strong leadership radicals have a field day?

What can be done to keep radicalism away from the shores of Sri Lanka?

Not much is the short answer in the immediate present. But personal vulnerabilities or local factors in Sri Lanka can make young people more susceptible to extremist messages. These may include a sense of belonging, a feeling of civic pride in the nation, being involved in drugs and easy money with gangs. It could also be the Internet.There could be the propagation of violence by groups who will often offer solutions to strong feelings of religious discrimination, of injustice,of being marginalised,of being misunderstood,not listened to or being treated unfairly.

We need to re-educate against hate. We need to arm ourselves not with weapons but with words, values and real teachings rather than proselytise religion. 

Victor Cherubim