On 18/09/14 09:55, Big Les Wade wrote:
Rod Speed posted
Dave Plowman (News) wrote
Rod Speed wrote
Dave Plowman (News) wrote

Just been listening to an SNP person stating that a
common currency would be to the benefit of both an
independant Scotland and what remains of the UK. Again.

Since she obviously doesn't have the best interests
of the UK at heart, should anyone believe her?

Doesn't matter given that only Scotland gets to vote.

But not in their power to say under what terms they can use the
pound, though.

Fraid so.
That remains under the control of the UK government.

Nope. Any country is free to use any currency they like.
The country whose currency it is gets no say whatever on that.
Plenty use the USD for various reasons.

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.

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) and therefore it couldn't manage its own public
finances independently. To do that, it must issue its own debt - i.e.
launch its own currency. And that is more problematic, because it
requires Edinburgh to persuade the markets that it can and will repay
the debt.

essentially about 4x the assets that it currently has in total


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Everything you read in newspapers is absolutely true, except for the
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