Will Osborne Cave In On Currency Union ? - Page 2 - Anything Goes - Other topics not covered elsewhere - Tartan Army Message Board Jump to content

Will Osborne Cave In On Currency Union ?


Recommended Posts

  • Replies 88
  • Created
  • Last Reply

Top Posters In This Topic

What is the point of gaining independence to hand monetary independence back to the BoE? Two divergent economies (we will be booming and the RUK will be tanking) of unequal size shouldn't share the same currency it won't work and can't see why sharing the pound has become a holy grail in this campaign.

I think it's because the current Scottish Government have adopted the Fiscal Commission's recommendation of the best of five options.

Link to comment
Share on other sites

What is the point of gaining independence to hand monetary independence back to the BoE? Two divergent economies (we will be booming and the RUK will be tanking) of unequal size shouldn't share the same currency it won't work and can't see why sharing the pound has become a holy grail in this campaign.

I reckon they don't plan to keep a currency union long term, but know that folk would never vote for Independence with a new currency

One step at a time

Independence

Negotiation

Organisation

Period of calm

New currency

Just my thoughts

Link to comment
Share on other sites

there is no way that we would win the referendum if the Yes campaign said that we wouldn't definitely have the pound.

There s a reason that the No campaign is using fear as their primary tactic and that is because the vast majority of the electorate aren't engaged enough, or dare I say intelligent enough, to realise that keeping the pound is actually a bad idea. They like the warm fuzzy feeling of still using 'our pound'.

The only way to have true independence is to get rid of combined UK currency but there would be zero chance of a Yes majority if this was proposed.

Edited by tartandon
Link to comment
Share on other sites

there is no way that we would win the referendum if the Yes campaign said that we wouldn't definitely have the pound.

There s a reason that the No campaign is using fear as their primary tactic and that is because the vast majority of the electorate aren't engaged enough, or dare I say intelligent enough, to realise that keeping the pound is actually a bad idea. They like the warm fuzzy feeling of still using 'our pound'.

The only way to have true independence is to get rid of combined UK currency but there would be zero chance of a Yes majority if this was proposed.

So - its a political calculation on Yes's part. Salmond et al know that the rUK will never go for it... So is plan b sterlingisation?

Link to comment
Share on other sites

Guest Extreme0

I can tell you one thing. If I were a asshole Tory who wants to keep the union together for personal exploit. It's better to cave in after the Referendum then before.

Link to comment
Share on other sites

Its a game of bluff. I doubt there will be the poltical will to "punish" Scotland by denying sterling. However the publics attitude will be different. I cant see the rUK public supporting Scotland piggybacking on Sterling. Whether Scotland defaults on its debt is another thing. For them to do this will virtually make the Scottish Govt a pariah .

Edited by EddardStark
Link to comment
Share on other sites

Its a game of bluff. I doubt there will be the poltical will to "punish" Scotland by denying sterling. However the publics attitude will be different. I cant see the rUK public supporting Scotland piggybacking on Sterling. Whether Scotland defaults on its debt is another thing. For them to do this will virtually make the Scottish Govt a pariah .

Scotland has no debt.

Link to comment
Share on other sites

They will post independence. Around £100bn. You can argue around the semantics.

it hasn't been much talked about but I think in the event of a currency union we should not accept a population share of the debt. That is not how it was spent, we should accept a share based on the benefit/expenditure in Scotland.....

We currently pay £4Bn/yr on interest on UK debt - a a population share and nearly half our annual overspend...

Link to comment
Share on other sites

Its a game of bluff. I doubt there will be the poltical will to "punish" Scotland by denying sterling. However the publics attitude will be different. I cant see the rUK public supporting Scotland piggybacking on Sterling. Whether Scotland defaults on its debt is another thing. For them to do this will virtually make the Scottish Govt a pariah .

I agree with this. This threat is more of a bluff than the supposed 'no currency union' threat from the UK political parties.

Link to comment
Share on other sites

The Scottish govt would have no debt upon which it can default.

I know that the debt is held by the BoE, and that Scotland will not have legal title to it. It is undeniable that a part of the BoE debt was run up by Scotland as part of the UK. There is no way iScotland won't take on a share, currency union or not. In fact, I think rUK should take significant action (e.g. blocking Scottlish EU membership) if it even looks like it won't take on a proportionate share.

Link to comment
Share on other sites

I know that the debt is held by the BoE, and that Scotland will not have legal title to it. It is undeniable that a part of the BoE debt was run up by Scotland as part of the UK. There is no way iScotland won't take on a share, currency union or not. In fact, I think rUK should take significant action (e.g. blocking Scottlish EU membership) if it even looks like it won't take on a proportionate share.

So you think, having lost 10% of it's population, diminished reputation in the eyes of the international community, a hugely unstable economy and spiraling debt, rUK should act like a petulant child in front of the watching world? You really think that would gain them credibility?

If this isnt trolling, Im cringing. Badly.

Link to comment
Share on other sites

So you think, having lost 10% of it's population, diminished reputation in the eyes of the international community, a hugely unstable economy and spiraling debt, rUK should act like a petulant child in front of the watching world? You really think that would gain them credibility?

If this isnt trolling, Im cringing. Badly.

It's the nuclear option, I'll grant. But Salmond is threatening the nuclear option re debt.

Link to comment
Share on other sites

It's the nuclear option, I'll grant. But Salmond is threatening the nuclear option re debt.

Scotland not paying it's debt doesn't come close to the economic dangers of rejecting currency union. The nuclear option was the three UK parties coming together and threatening Scotland. No monetary union has a far bigger effect on the Sterling wide economies than Scotland not paying down a small fraction of the UK's debt.

Link to comment
Share on other sites

Scotland not paying it's debt doesn't come close to the economic dangers of rejecting currency union. The nuclear option was the three UK parties coming together and threatening Scotland. No monetary union has a far bigger effect on the Sterling wide economies than Scotland not paying down a small fraction of the UK's debt.

So why make the threat if he doesn't think it'll force the rUK's hand? He knows that, actually, monetary union isn't that important economically - it's a political expediency to win the referendum.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...



×
×
  • Create New...