WANT TO KNOW UNEQUIVOCALLY WHY THERE WILL BE A STERLING ZONE AFTER A YES VOTE .... THEN READ ON !! There is no currency uncertainty, there is no need to start talking about a plan b! (although plan b - sterling without a currency union) The best way to be reassured about the currency issue is to understand the impact it would have on the rest of the UK and sterling itself without a currency union, once you get that youll see that they actually need it more than we do and that its all just threats and political posturing just now. Firstly it is Scotlands currency and it is not there to be taken away and even if it was something they could take away they wouldnt for the following two key reasons. 1. The recent recession was caused by a drop in GDP of 5% and look how badly that affected the state finances. Excluding Scotlands economy from a sterling zone would overnight cause a UK recession twice that size 10% . This would cause a massive increase in the interest the UK would have to pay on loans - basically bankrupting the UK. Thats why economists have called the idea economic vandalism. 2. All of the Scottish banknotes in circulation are backed by deposits of Scottish bullion held by the bak of England. If we were kicked out of a sterling zone then we would legitimately recall all of that security to back our own currency...again the Bank of England would be unable to meet this demand so there will definitely be a currency zone. The last but easiest point is that the £ is a fully tradable currency and anyone can use it. Anyone! One of the Nobel prize laureates that recommended the currency union was actually Mark Carneys mentor (the governor of the bank of England), and he clearly said himself they would implement whatever arrangements were made. Theres no reason, economic or otherwise that they have given to refuse a currency union, no top economists have said that its the best course of action (quite the opposite), it honestly is all just bluff just now, to scare people about the pounds in their pocket. Even without a currency union there would be no way of stopping us using sterling as anyone, anywhere can use it. But they wont stop a currency union as theyd destroy themselves in the process. Im surprised the markets havent forced their hand on this yet, they exerted this pressure last year making them have to admit the debt is their liability regardless to reassure the markets. Losing our contribution to their otherwise awful balance of payments, would be the economic vandalism noted above. Were an oil rich, net exporter, we contribute to the value of sterling as a currency, they really do need us! Now...if you refer to the White Paper - The Scottish Government is clear that post-independence it will always be up to the people of Scotland, and their elected government, to decide what our currency should be. However, the present Government has the responsibility of negotiating what the best starting point would be for an independent Scotland
Posted on: Wed, 06 Aug 2014 22:48:06 +0000
Trending Topics
Recently Viewed Topics
© 2015