If we get rid of Scotland

[minestrone]

Stop talking pish !! Scotland would be the only country in the world with a deficit.

And worthless oil.

And no employers.

And fish stocks that no one buys

And they'll have to give all whisky away duty free.

You are the idiot that still thinks Scotland creates more for the UK wealth than it receives.

[Old Greg]

Oil production will ramp up over the next few years, millions has been invested recently hence the drop. Long term Scotland will become one of the wealthiest nations in the world. A manageable deficit is normal in a countries economy.

True to an extent but with risks. You don't like pro-unionist MSM, so here is University of Glasgow via Voice of Russia, and of course Russia supports independence for obvious reasons:

Scotland should create its own currency if independent, says new report - News - News - Voice of Russia UK, Voice of Russia - UK Edition

The University of Glasgow report rejects the idea, propounded by Scottish National Party leader Alex Salmond, that Scotland would retain the pound. Bank of England Governor Mark Carney said on Wednesday that a currency union between an independent Scotland and the remainder of the United Kingdom would be incompatible with sovereignty.
This new Glasgow University report demonstrates that all of the currency options available to an independent Scotland come with the price tag of an austerity programme.
It said: "The only currency option that maximises the benefits and minimises the costs of independence is that of a separate currency. All of the other options have none of the benefits but even greater costs than the separate currency option.
"The ball-park cost of setting up a separate currency, purely in terms of the foreign exchange reserves required, is a minimum £40 billion. This is the sum of money similar-sized Nordic countries - such as Denmark, Norway and Sweden - need to run a variety of different independent currency regimes, from a float to a fixed rate, and a managed float."
It said the retention of a sterling monetary union post-independence will not work because it does not allow an independent Scotland to adjust to changes in competitiveness as a result of becoming a petro-currency, post-independence.
The report said: "Our calculations show that because of the petro-currency effect, the competitiveness of Scotland’s non-oil export sector will worsen by approximately 7 percent per annum. This loss of competitiveness can only be addressed by a dramatic rise in productivity of around 7 percent or internal adjustment of wage cuts and a rise in unemployment, much as happened in Greece and Spain recently. The competitiveness of firms trading in Scotland will be volatile and uncertain, containing the same risks and costs as a separate currency with none of the benefits."
Adopting the pound informally – known as sterlingisation – the report says "is without doubt the worst possible currency option for an independent Scotland for a number of reasons. First, since sterling would be a foreign currency a reserve balance of at least £40 billion would be needed just to smooth out balance of payments deficits and surpluses.
"Second, because it is a fixed rate system it could not address competiveness issues arising from the petro-currency effect. Third, to insure the sterling retail bank deposits held in Scotland would require a further accumulation of reserves of £120 billion.
"Fourth, an independent Scotland would need to float its debt in sterling and need to acquire foreign exchange reserves to back this, another £6 billion, or pay ruinously high interest rates in the absence of such backing. This would be austerity ‘plus plus’."
The report said adopting the euro would not work as the euro zone is another form of one-size-fits all monetary policy, similar to the sterling zone, and would not be a suitable currency regime for an independent Scotland.
It concludes that a separate currency is the only option that facilitates an appropriate macroeconomic policy for an independent Scotland.
"It would give the maximum flexibility in the operation of fiscal and monetary policy and it is the only option that financial markets would find credible. However, given the limited foreign exchange reserves an independent Scotland would inherit, a pure float would need to be run in the initial years of independence, generating considerable uncertainty and risk for trade and investment, although not markedly different to that in a formal monetary union.
"An austerity programme of budget surpluses would also be required to gain credibility with financial markets and to gather in the required £40bn of foreign exchange reserves to run a managed system. There will be continued turmoil in financial markets until this option is chosen and designed appropriately."
Read more: Scotland should create its own currency if independent, says new report - News - News - Voice of Russia UK, Voice of Russia - UK Edition

[TestMangler]

You are the idiot that still thinks Scotland creates more for the UK wealth than it receives.

And you're the idiot that claims he'll move away and transfer his 'assets' out of the country

Bet you said you'd go abroad when IR35 was introduced as well.

[minestrone]

And you're the idiot that claims he'll move away and transfer his 'assets' out of the country

Bet you said you'd go abroad when IR35 was introduced as well.

Actually, now RBS and Standard Life have announced they are going to London I don't have to move anything,

[jemb]

Oil production will ramp up over the next few years, millions has been invested recently hence the drop. Long term Scotland will become one of the wealthiest nations in the world. A manageable deficit is normal in a countries economy.

.....really? both sides have experts contradicting each other and access to the extra reserves depends on a lot more than it physically being there.

Long term it is difficult to predict the impact oil will have - it's all just speculation.

Nice to see you've all given up kidding yourself that there will be a CU.

[TestMangler]

Actually, now RBS and Standard Life have announced they are going to London I don't have to move anything,

Would you like to point me at some documented statement where they said that ??

You do understand what 'contingency' means, don't you ?

[jemb]

True to an extent but with risks. You don't like pro-unionist MSM, so here is University of Glasgow via Voice of Russia, and of course Russia supports independence for obvious reasons:

Scotland should create its own currency if independent, says new report - News - News - Voice of Russia UK, Voice of Russia - UK Edition

In the event of a 'Yes' Salmond will commit to using Sterling....he'll have to.

[Old Greg]

.....really? both sides have experts contradicting each other and access to the extra reserves depends on a lot more than it physically being there.

Long term it is difficult to predict the impact oil will have - it's all just speculation.

Nice to see you've all given up kidding yourself that there will be a CU.

Interestingly Paddy Power has stopped offering odds on an independent Scotland's currency. You can get 5/1 of independent Scotland having a AAA rating. Scottish Independence Independent Scotlands Credit Rating Betting Odds | Politics Betting | Oddschecker

[minestrone]

Would you like to point me at some documented statement where they said that ??

You do understand what 'contingency' means, don't you ?

I used to think opinion for nationalism varied most visibly over the class divide.

I now very clearly see the biggest factor is intelligence.

[Old Greg]

In the event of a 'Yes' Salmond will commit to using Sterling....he'll have to.

There will be no CU and sterlingisation probably means ejection from EU. The only significant downside to setting up a new currency is the lost votes, and it will be too late for the voters then. And he can blame Westminster for bullying.