This fiction of Peter's exposes the scam.
Peter of England wrote:... and WeRe Bank credits his account with the £8,000 equivalent.
Yes, I can see the WeRe bank could "pay" the roofer by merely crediting his account. But could the roofer ever draw his £8000 in cold, hard (sterling) cash?
Peter of England wrote:WeRe Bank is happy in that it was able to PAY IN REAL MONEY a worker for work done.
Not if it merely credited his account; it is merely a book-keeping entry. But if it were to pay the roofer in cold, hard (sterling) cash then ...
Peter of England wrote:Now you may ask, well where did the money come from to pay this roofer?
Good question. Where does this £8000 in real Bank of England notes come from? The roofer will have to pay some of this out in taxes. He needs real money for that.
Peter of England wrote:Do you really care?
Yes, we care. Because, frankly, I don't believe Peter will ever pay the roofer the £8000. Because he hasn't got it. He won't have it until 800 suckers pay their first monthly £10. Then, sure, he can spend the entire assets of his bank paying the roofer. If anyone else wants cash from his bank that month, tough luck.
So the fiction only works if the roofer (and all other recipients of money) accept WeRe units, and won't want them converting to cold, hard (sterling) cash. But mortgage companies, HMRC and all the rest won't.
Ceylon says he is putting loads of questions to Peter today. Perhaps Peter will explain things properly. Or perhaps he will once again display his deep ignorance of the Bills of Exchange Act.