Scotland's new currency

[doodab]

Yes, as required by EU directives.

Banks (if necessary) will be bailed by Eurozone and IMF.

HTH

Assuming they are in the EU. Of course you can't join the EU without joining the Euro anymore, so that's their new currency taken care of.

[AtW]

Assuming they are in the EU. Of course you can't join the EU without joining the Euro anymore, so that's their new currency taken care of.

They will join EU pretty quickly, and without pound they'd be welcome in eurozone - this would force England to join as well.

[Doggy Styles]

They will join EU pretty quickly, and without pound they'd be welcome in eurozone - this would force England to join as well.

You idiot

Stop taking the piss out of scooter.

[scooterscot]

We managed to bail both the English banks that needed it and RBS out, which while not exactly desirable implies we had the resources to do it.

But we dint. That's the point. If we had the resources our national debt would not have grown. To have a resource implies we had something to sell in exchange for money. But we don't. So we sold the labour of our un-born children.

It's amazing to claim 'we had the resources' when in actual fact we had nothing but the future wealth of our unborn children.The audacity is incredible as much as it is blinding. And it's beyond incredible how little this is understood by the general masses.

What has Briton done for the world? It has led the way in industrialisation, engineering & scientific discovery. In fact we celebrated this during the opening of the Olympics. What have bankers done for us? Made us believe we had money to spend we don't actually have. Now consider these two for a moment. The amount of cash we conjured from thin air to bail the banks in a couple of years here in the UK was more than 200 times the amount given by the state towards engineering & scientific discovery throughout the entire history of industrialised Briton.

[scooterscot]

We managed to bail both the English banks that needed it and RBS out, which while not exactly desirable implies we had the resources to do it. An independent Scotland probably wouldn't have had the option to borrow billions and save RBS, so it would have gone to the wall, and the knock on effects would have been catastrophic for the rest of the industry.

Will an independent Scotland still provide a deposit guarantee for savers?

:
To answer your question. There can be no precedent for an independent country to be held to ransom by a private institution that would have put the saving of depositors at risk.

Would an independent Scotland had deregulated it's financial industry? I doubt it. And thus would not have got ourselves into the mess the tories have led us into in the first place.

[scooterscot]

They will join EU pretty quickly, and without pound they'd be welcome in eurozone - this would force England to join as well.

It is rather odd this currency debacle.

Have the supporters of George's recent statement on a currency union considered what would happen to the value of the pound were five million people to stop using it overnight?

I reckon 5 to 10% will be wiped off the value of sterling were 5 million people made to use something else. Is that the kind of pressure the residents of England want?

[Zero Liability]

I think you'd have to look at total demand for the pound, which is not equal to demand for the £ in the UK alone. Wealthier investors alone will have a higher demand for the £ than the average person, so it is unlikely lost demand from Scotland not entering a currency union with the UK will result in anything like a loss of value of 5-10%.

I'm also curious if you can point to which specific 'de-regulations' (as in lower reserve requirements? split between investment and retail banking? what?) caused the banks to implode, or whether you acknowledge the role of fractional reserve banking in the matter, which allows banks to legally pyramid credit upon deposits held (in actual fact they don't even have to do this much.) I doubt Scotland is going to part ways from the rest of the West in its financial model, it'll just be more of the same tulipe. FRB isn't something the Tories are exclusively to blame for. All three parties allow it because it helps the government finance its open market operations without directly intervening through printing more cash, which keep its debt artificially cheap by creating artificial demand for it and gooses up GDP as it boosts asset prices. If anything, attempts to define and carve up assets into various risk tranches (e.g. Basel) encouraged banks to take on more artificially safe assets than they otherwise would have.

There is the problem that most depositors are not actually aware that their deposits are in fact treated as very short term loans to the bank, but hopefully in light of the various bail-ins that have occurred, people will be more sensible with where they put their money and accept that unrelated third parties should bear no liability for them.

In short, I can't see why the BOE should have to let Scotland in on the £, and it is rightly concerned with what this would entail. If Scotland wants in on a broader currency union, there is the Euro, not that either it or the £ are particularly well managed. They're just not as poorly managed as the $.

[petergriffin]

What about Gold? Silver? Bitcoin?

Anything which is not thin air would attract attention and respect.

[AtW]

Anybody asked what Mel Gibson thinks about it?

I think we need to know.

[doodab]

:
To answer your question. There can be no precedent for an independent country to be held to ransom by a private institution that would have put the saving of depositors at risk.

Would an independent Scotland had deregulated it's financial industry? I doubt it. And thus would not have got ourselves into the mess the tories have led us into in the first place.

You seem to miss that the rapid growth of edinburgh as a financial centre has been at least partly due to the regulatory environment in the UK. Without the UK regulatory environment it would be a lot smaller, you wouldn't have had tesco, virgin and a host of US fund managers setting up shop there.