Does anyone here believe we can't use the pound?

[bowmore]

I see the bank of England have confirmed today that there cannot and will not be a currency union.

[bowmore]

What is the announcement just released by the EU? Just caught the end but is was confirming the worst fears about Scotland's eligibility, membership and the caveats negotiated by Thatcher.

[welshbairn]

I see the bank of England have confirmed today that there cannot and will not be a currency union.

Link please or it didn't happen

[KR88]

The No campaign’s most repeated scare story is that an

independent Scotland wouldn’t be able to keep the UK

pound. This is a categorical lie. Sterling is what’s known as

a “fully-tradeable” international currency, which means that

any country can use it if it wants to, without requiring the

UK government’s permission.

So even if the threats made by George Osborne (and

backed by Ed Balls and Danny Alexander) that Westminster

would refuse a formal currency union were to turn out to

be true, nothing could stop Scotland from continuing to

use the pound.

Many economic experts actually believe that using Sterling

“unofficially” would be a BETTER plan for Scotland. In

February this year Sam Bowman, research director of the

world-renowned Adam Smith Institute, said:

“An independent Scotland would not need England’s

permission to continue using the pound sterling,

and in fact would be better off using the pound

without such permission.

An independent Scotland that used the pound as

its base currency without the English government’s

permission would probably have a more stable

financial system and economy than England

itself.” [23]

Professor Lawrence White of the Institute of Economic

Affairs agreed, noting that while informal use would

leave Scotland without a national central bank, such an

arrangement can actually be a positive:

“The possibility of banking panic justifies having

a central bank only if it can be shown that panics

are more frequent and severe in countries without

central banking than in countries with central

banking.

The evidence actually points the other way.

An official lender of last resort can unintentionally

worsen the problem of banking panics if it makes

explicit or implicit bailout guarantees that

encourage banks to take undue risks”

In any event, most experts agree that the Unionist parties’

position is a bluff. In March 2014 Janan Ganesh of the

Financial Times (and formerly of The Economist), who also

wrote a biography of George Osborne in 2012, told the

BBC’s Sunday Politics that:

“If the Scots vote for independence, of course a deal

will be done on the currency, because it’s not in

London’s interests to have a rancorous relationship

with Edinburgh.”

He was commenting after an unnamed UK government

minister told the Guardian:

“Of course there would be a currency union”

A few days later the University of Glasgow’s professor of

economics Anton Muscatelli - a former consultant to the

World Bank and the European Commission, a current adviser

to the House of Commons Treasury Select Committee

on monetary policy, and former chair of an independent

expert group for the Calman Commission on devolution -

also said the UK government was bluffing, in a piece for the

Financial Times explaining why refusing a currency union

would be a reckless and irresponsible move:

“A successful currency union would actually be in

the interest of both sides – and especially the rest

of the UK.

The most damaging prospect to the rest of the UK

from rejecting a sterling currency union is what

it will do to its own trade and business activity.

Whatever the political tactics involved, it would be

tantamount to economic vandalism.”

No matter what happens after a Yes vote, whether the UK

government agrees to a currency union or not (although the

overwhelming likelihood is that it will), Scotland WILL keep

the pound. Because of the nature of Sterling, this is one

of the few aspects of the debate which can be absolutely,

unequivocally guaranteed.

Do you read half an article and stop?? Do u have a mortgage or a cc or a bank account?? Then ALL of these will be governed by the b of e if u stay using the pound!!! How is that independant???

[welshbairn]

What is the announcement just released by the EU? Just caught the end but is was confirming the worst fears about Scotland's eligibility, membership and the caveats negotiated by Thatcher.

Link please or it didn't happen

[welshbairn]

Our new guest posters are getting into panic posting frenzy now. Looking good for tomorrow..

[NormanSaysNo]

What is the announcement just released by the EU? Just caught the end but is was confirming the worst fears about Scotland's eligibility, membership and the caveats negotiated by Thatcher.

Can't see any announcement by the EU. Merely a speech by Spain's PM saying he's likely to do all he can to block Scotland's entry.

Pretty much what we've known throughout this campaign, really.

[H_B]

What is the announcement just released by the EU? Just caught the end but is was confirming the worst fears about Scotland's eligibility, membership and the caveats negotiated by Thatcher.

Mainly the Spanish getting twitchy about it and taking a hard line.

[Jacksgranda]

What have you done with the other half million of us?

They're "Don't Knows", so aren't included.

[bowmore]

The above posts came of listening to the radio. I'm not sure who was speaking for the BoE but the EU guy was addressed as 'commisioner'.

[bowmore]

it was the president of the EU commision.

[FREDDYFRY]

Can't see any announcement by the EU. Merely a speech by Spain's PM saying he's likely to do all he can to block Scotland's entry.

Pretty much what we've known throughout this campaign, really.

Aye and Non Catilan Spain are really neutral in this debate!

[Cliche Guevara]

Uk population 64.1 million (is Scotland 4.8 million?)

Point conveniently missed that Scotland spent 1.13 x revenue and UK spent 1.2 x revenue, so the figures posted by H_B were only half the story. The bad half.

[H_B]

Point conveniently missed that Scotland spent 1.13 x revenue and UK spent 1.2 x revenue, so the figures posted by H_B were only half the story. The bad half.

And the figures given by Welshbairn did not support the claim being made.

Scotland does not generate more in revenue than is spent.

[bowmore]

It's really sad as loads seem

to have been sucked in by salmonds lies but looks like they are starting to unravel

[NormanSaysNo]

Aye and Non Catilan Spain are really neutral in this debate!

Of course they are highly un-neutral.

The problem for an independent Scotland is that they'll need to get Spain's agreement however they propose to enter the EU. Certainly if they choose to pursue the method outlined in the Scottish Government's white paper.

[Cliche Guevara]

And the figures given by Welshbairn did not support the claim being made.

Scotland does not generate more in revenue than is spent.

It generates more revenue than is spent in Scotland. Things spent supposedly in Scotland's interests, such as HS2, St.Pacras train station, London sewerage system, crossrail, Trident etc contribute to the deficit and are nothing to do with us.

Scotland generates more income than it receives back.

[H_B]

Scotland generates more income than it receives back.

No it does not.

You are welcome to argue with the current spending priorities of the Westminster government, and the Scottish government, but Scotland does not generate more in revenue than it costs to run Scotland.

[NormanSaysNo]

Scotland generates more income than it receives back.

Still waiting on some unbiased figures to back that statement up.

[Cliche Guevara]

No it does not.

You are welcome to argue with the current spending priorities of the Westminster government, and the Scottish government, but Scotland does not generate more in revenue than it costs to run Scotland.

That's a different point though.

And also disingenuous as the figure you are quoting is what is spent 'on behalf of Scotland', which is our contribution towards things that have nothing to do with us and have no benefit to us, and we wouldn't have any involvement in if we were independent.