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Scottish Independence: George Osborne To 'rule Out Currency Union'

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http://www.bbc.co.uk/news/uk-scotland-scotland-politics-26147783

UK Chancellor George Osborne is likely to rule out a formal currency union with an independent Scotland, government sources have told the BBC.

It comes after the prime minister said Mr Osborne will set out details of the coalition's position later this week.

The Scottish government has said it wants to retain the pound if there is a "Yes" vote in referendum.

Scottish Deputy First Minister Nicola Sturgeon said Westminster was trying to "bully Scotland".

Ms Sturgeon said the position that a UK government would turn its back on a currency union did not bear scrutiny and was a campaign manoeuvre.

Scotland wants to be a independent country then have your own currency. I'm sure the SNP will make it worth more than gold with all the new debt they'll create.

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Sounds fair enough.

There is in fact nothing to stop the Scots using sterling without rUK permission. It's not illegal to take pounds abroad. They can just use it anyway.

But this way they have no recourse to the BoE - lender of last resort remember - so we don't have any liability for failed banks and the like.

It might complicate the division of the national debt though. :rolleyes:

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absolutely right.

The clue is in the name "Great British Pound", if you're not part of GB you can't use our pound - end of.

Why would an independant Scotland not want their own currency anyway, either that or they could sign up for the euro :lol:

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How anyone could witness the EU for the lay few years then even want to contemplate a currency union is beyond me. The fact is even been mentioned suggests a lot about the complete lack of understanding of economic matters by some of the powers that be.

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How anyone could witness the EU for the lay few years then even want to contemplate a currency union is beyond me. The fact is even been mentioned suggests a lot about the complete lack of understanding of economic matters by some of the powers that be.

Well, it seems that the pro-independance lot are basically whitewashing any awkward questions.

The currency union thing being the worst, they basically seem to have the position of 'We're going to use the pound so there..'. That is NOT a question that can be decided by Scotland alone. The real cynic in me thinks that this is actually a calculated move by Salmond; it means that even after independence he'd be able to blame Westminister for everything.

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Well, it seems that the pro-independance lot are basically whitewashing any awkward questions.

The currency union thing being the worst, they basically seem to have the position of 'We're going to use the pound so there..'. That is NOT a question that can be decided by Scotland alone. The real cynic in me thinks that this is actually a calculated move by Salmond; it means that even after independence he'd be able to blame Westminister for everything.

I'm not sure, I think he assumes Scotland could be independent and keep using the pound perhaps like Panama uses the dollar? However this means Scotland would have to earn it's currency.

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They will also need new postage stamps, and a new postal service.

European letter rate to send mail to Scotland?

At least there will be no more licking the queens backside

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I'm not sure, I think he assumes Scotland could be independent and keep using the pound perhaps like Panama uses the dollar? However this means Scotland would have to earn it's currency.

As an oil and gas State easier to earn and use dollars?

Could be a lot of advantages of having an independent low tax Scotland with its own currency ( for the English) hence why it won't be allowed to happen, for real. It will be a kind of feux independence, like our feux democracy.

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Osborne will probably be out of a job long before any of the serious business of independence begins, in the event of a 'Yes' vote. Ignore.

Why do you think the position will change with Labour ? If Scotland go independent then what's that going to do to Labours number of MPs ?

Salmond has played his whole campaign on playing up to the positives and how wonderful everything is going to be. The reality is that some things will be better and some worse. If there is a gain it will be in the long and not the short term.

But like all politicians he has not squared with the public and done the decent thing of admitting there will be issues and problems in the land of milk and honey that he has promised.

This is just a vanity project which has done nothing so far to address the real issues associated with independence, and ducked the hard questions because they might make the campaign unpopular.

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Why do you think the position will change with Labour ? If Scotland go independent then what's that going to do to Labours number of MPs ?

Salmond has played his whole campaign on playing up to the positives and how wonderful everything is going to be. The reality is that some things will be better and some worse. If there is a gain it will be in the long and not the short term.

But like all politicians he has not squared with the public and done the decent thing of admitting there will be issues and problems in the land of milk and honey that he has promised.

This is just a vanity project which has done nothing so far to address the real issues associated with independence, and ducked the hard questions because they might make the campaign unpopular.

Will he accept a no vote? If the vote is say a 60/40 split to stay in the UK will he just propose a new vote?

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Why do you think the position will change with Labour ? If Scotland go independent then what's that going to do to Labours number of MPs ?

Salmond has played his whole campaign on playing up to the positives and how wonderful everything is going to be. The reality is that some things will be better and some worse. If there is a gain it will be in the long and not the short term.

But like all politicians he has not squared with the public and done the decent thing of admitting there will be issues and problems in the land of milk and honey that he has promised.

This is just a vanity project which has done nothing so far to address the real issues associated with independence, and ducked the hard questions because they might make the campaign unpopular.

I'm just saying that Osborne's position is all of this is one of considerably less power/influence/significance than he perhaps supposes. He's just posturing, as the others are too.

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How anyone could witness the EU for the lay few years then even want to contemplate a currency union is beyond me. The fact is even been mentioned suggests a lot about the complete lack of understanding of economic matters by some of the powers that be.

Not really. The Scottish and English economies are very similar in regards to wages and such like. So conditions for a successful currency union are much better than the EU where a lot of the problems are caused by huge disparities between Germany and places like Greece.

If I was Scottish I'd want to join the Euro anyway, and get a complete divorce from England, but they're not being offered that option for some reason.

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TBH I'm indifferent to Scottish independence (fine, whatever), but surely this is aimed at trying to get the Scottish voters to reject it rather than any serious policy statement about what will happen post-independence? Looks and smells like FUD to me.

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Osbo's approach seems to me a tad counter-productive. It may wind up voters north of the border who could interpret this as bullying. Another example of how the Tories seem to actually want a YES vote.

There are examples from around the world of states using other nations' currencies. Zimbabwe, for example, having debauched its own currency, just used the US dollar, although I understand it's now switching to the Yuan.

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I suspect the real reason the main parties in Westminster don't want Scottish independence is that they are scared of what could happen, especially if the pound were still in use. If Scotland were independent it could reduce taxes and get lots of companies to base HQs in Scotland, eroding the tax base in England.

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TBH I'm indifferent to Scottish independence (fine, whatever), but surely this is aimed at trying to get the Scottish voters to reject it rather than any serious policy statement about what will happen post-independence? Looks and smells like FUD to me.

This may well be the case.

But ... can you argue why the policy outlined by Osbourne is so incredible as to be unbelievable ?

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This may well be the case.

But ... can you argue why the policy outlined by Osbourne is so incredible as to be unbelievable ?

Not really ;)

IF Scotland votes for independence, they MAY have to switch to a different currency (their own or, longer term, the euro?). However, at present this is purely about trying to prevent a yes vote. I'm surprised he didn't have scary music playing in the background during the announcement...

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Ummm... why ?

RUK - no fx union

SCO - fine, keep the GBP debt. You have 24hrs to get rid of trident from faslane too.

RUk - You should take your share of debt????

Sco - Well we are not against doing that, but no legal requirement. So what do we get in return?

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Osbo's approach seems to me a tad counter-productive. It may wind up voters north of the border who could interpret this as bullying. Another example of how the Tories seem to actually want a YES vote.

There are examples from around the world of states using other nations' currencies. Zimbabwe, for example, having debauched its own currency, just used the US dollar, although I understand it's now switching to the Yuan.

They get to rule England like the good old days before the Lords got reformed.

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