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Snp Plan To Use The Pound

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Just caught it on the TV this morning and it appears that the SNP are convinced that they will just continue to use the pound.

Would the English business accept Scottish notes 1:1, would they only be accepted at a discount 1:0.9 etc... or would the BoE/Govt make clear Scottish notes aren't Sterling?

Not seen any of the debate so no idea how fluffy the debate was on this issue.

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Just caught it on the TV this morning and it appears that the SNP are convinced that they will just continue to use the pound.

Would the English business accept Scottish notes 1:1, would they only be accepted at a discount 1:0.9 etc... or would the BoE/Govt make clear Scottish notes aren't Sterling?

Not seen any of the debate so no idea how fluffy the debate was on this issue.

By all accounts the debate was a horrible unenlightening slog on both sides.

But if I were you I would be praying that Scotland continues to use the pound. On this forum we know exactly how badly Westminster manages the economy and the banking system. They pump up asset prices and call it wealth, and they devalue the currency through QE and low interest rates, waiting for an export boom that can never emerge from their deindustrialised and jobless heartlands. Already decades of underreported inflation has given rise to the 'housing crises' and the 'cost of living crisis'. We no longer have our AAA rating.

All that saved us from hyperinflation in the 70s was North Sea oil. If Scotland leaves the Sterling zone, taking its contribution to the balance of payments and its oil receipts, I can see the UK having a very tough time indeed.

No wonder Cameron is so keen on fracking.

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Guest The Relaxation Suite

Scotland has absolutely zero chance of being an independent state. Zero.

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Just caught it on the TV this morning and it appears that the SNP are convinced that they will just continue to use the pound.

Would the English business accept Scottish notes 1:1, would they only be accepted at a discount 1:0.9 etc... or would the BoE/Govt make clear Scottish notes aren't Sterling?

Not seen any of the debate so no idea how fluffy the debate was on this issue.

I say we should., after all, the scottish banknotes still have the term "sterling" on them.

so we should use, and demand repatriation in silver.

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Very interesting question, a lot of people se the move towards Scottish independence as part of a 100 year trend of the gradual breaking up of big unitary nation-states

!0 years ago it would have been an obvious aspiration to join the Euro. Now this seems crazy. But what about the pound? Is that any better? Is it really in the interest of an independent Scotland to continue using pounds sterling? How does this fit into a long term decline of big "reserve" currecies?

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The big question is: do they keep the pound officially or unofficially.

Unofficially they just keep using the pound and no-one can really stop them. There are no export restrictoins on sterling at the moment. The downside of this for Scotland is that they no longer have access to the Bank of England as lender of last resort and bailer-out-of-banks. Without access to the sterling printing press their credit rating would be poor hence their cost of borrowing high. They will likely inherit £100bn to £150bn of the national debt and be paying 5%-10% to service it rather than the 2% we pay at the moment.

If they are in an official currency union then they keep the BoE safety net and presumably the credit rating. They might demand some seats on the MPC and the Court of the BoE and English taxpayers would remain on the hook for their debts. I can't see this being popular south of the border.

If they were really brave they could take this opportunity to move to a precious metal currency, probably silver, and issue shiny new coins. After a few decades of independance they would have the strongest economy in the world!

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They will likely inherit £100bn to £150bn of the national debt and be paying 5%-10% to service it rather than the 2% we pay at the moment.

Or just elect not to take on that debt.... which seems more likely if they are faced with no currency support.

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Or just elect not to take on that debt.... which seems more likely if they are faced with no currency support.

What if rUK gov just says it's theirs and then washes hands? so if they do that, it's a default?

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Just caught it on the TV this morning and it appears that the SNP are convinced that they will just continue to use the pound.

Would the English business accept Scottish notes 1:1, would they only be accepted at a discount 1:0.9 etc... or would the BoE/Govt make clear Scottish notes aren't Sterling?

Not seen any of the debate so no idea how fluffy the debate was on this issue.

The debate doesn't seem to be on iPlayer. Maybe it's on youtube?

In any event, the SNP's position on its currency is ridiculous. it used to be in favour of the Euro, but given the problems with that, it wants to stick to sterling. Either way, if you don't have your own currency, you are not independent.

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i really don't understand at all why they aren't going for their own currency. it's probably the biggest potential advantage of independence. They could even call it "the Pound", but if they could come up with a catchy scots or gaelic name, so much the better. They've got a couple of decades of oil left, so the currency should be reasonably stable. Using the norwegian currency might also be a logical longer term alternative.

Reneging on the debts would be great, as then they'd have to run balanced budgets for the next few decades, which would probably do the country no end of good.

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i really don't understand at all why they aren't going for their own currency. it's probably the biggest potential advantage of independence. They could even call it "the Pound", but if they could come up with a catchy scots or gaelic name, so much the better. They've got a couple of decades of oil left, so the currency should be reasonably stable. Using the norwegian currency might also be a logical longer term alternative.

Reneging on the debts would be great, as then they'd have to run balanced budgets for the next few decades, which would probably do the country no end of good.

Call it the haggis!

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Salmond will be OK when the Scottish currency collapses - he will still get his Parliamentary pension in Sterling ;)

Spawney get! Better than Stirling!

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Or just elect not to take on that debt.... which seems more likely if they are faced with no currency support.

This is Salmond's supposedly biggest gun in the currency debate. The no-sterling-no-UK-debt line. Utter crap. There is no way that Westminster would approve a bill giving Scotland independence without it taking a fair share of the debt.

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This is Salmond's supposedly biggest gun in the currency debate. The no-sterling-no-UK-debt line. Utter crap. There is no way that Westminster would approve a bill giving Scotland independence without it taking a fair share of the debt.

What do you think would happen if the people voted yes and the Eton toffs in Westminster said no?

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They'd get their rifles out?

I have no idea what would end up happening but I imagine that no good would come of it.

If there is a yes vote then Scotland is in a very strong negotiating position. Stronger than the rUK.

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