J.B.Treadstone wrote
Big Les Wade wrote
Rod Speed wrote
Big Les Wade wrote

Ah. If all you mean is that Scottish institutions and individuals will
be able to continue holding sterling accounts and notes (as Puerto
Rico does with US dollars) then of course you are trivially correct.

Nothing trivial about it.

'Trivial' meaning 'obvious'.

But in such a set-up the Scottish government would not
be able to borrow money by issuing sterling-denominated
debt instruments (because London wouldn't back them)

The rest of Britain could well reject any concept to
bail out a failing Scottish pound. (The Economist.)

The rest of Britain gets no say on that.

You've mangled that utterly.

Well I tried to keep it simple for you.

I thought it was plain enough.

More fool you.

and therefore it couldn't manage its
own public finances independently.

Wrong.

To do that, it must issue its own
debt - i.e. launch its own currency.

Exactly.

Nope. All those that use the euro manage
that fine without their own currency.

Furthermore, it would need some kind of
currency in able to join the EU. (The Economist)

They are already in the EU.

How odd that all those places that use USDs manage to do that fine.

Do what? Manage their public finances independently? No they
don't. They manage them subject to their access to US dollars,
which is strictly limited by Washington's economic policy.

As the GBP would be strictly controlled, if
the Scots chose to use that as their currency.

That isnt even possible.

Tightly held Treasury apron strings would,

Just another silly little fantasy.

of course, defeat much of the point of Scottish independence.

Wrong with the oil and gas revenues alone.

And that is more problematic, because it requires Edinburgh
to persuade the markets that it can and will repay the debt.

How odd that all those places that use USDs manage to do that fine.

Do what? Borrow on the money markets? Of course they
can, but only to the extent that they can repay the loans in US
dollars, which is against strictly limited by their access to same.

And your line can't fly with the obvious alternative, the euro.

Unlike sterling, the euro was designed to be a common currency,
with special mechanisms in place from the start to give members
a say in how it is managed (and it has still run into trouble).

Anyway, what's your point, that Scotland can join
the euro instead? We shall see. It'll cost them.

Little doubt of that, IMO.

More fool you. It looks like the YES vote wont get up
and so it wont cost them at all. They will in fact end up
with DevoMax and that no only wont cost them, its what
makes a lot more sense than independence anyway.

Sure, there will inevitably be some tantrums when the YES
vote doesn’t get up, but that's just more **** and wind.