Scotland's new currency

[doodab]

I've a question if anyone cares to answer, so if you're in the Public Sector in Scotland or have retired from the Public Sector and the country votes Yes will they then have to pickup the pension liabilities etc?

Sadly that's one the SNP doesn't care to answer.

[Ticktock]

Sadly that's one the SNP doesn't care to answer.

Don't worry. Salmond will pop up on TV soon to say that these are the responsibility of rUK.

Probably something along the lines of "These proud Scottish people worked for the UK government, so the UK should pay their pensions. We didn't employ them, we didn't cause them to get old and need to retire. It's just plain bullying to say that a new Scottish government should be responsible for Scots in Scotland in the Scottish public sector."

[minestrone]

I can assure you that company philosophy never trickled down to IT.

[Bunk]

Don't worry. Salmond will pop up on TV soon to say that these are the responsibility of rUK.

Probably something along the lines of "These proud Scottish people worked for the UK government, so the UK should pay their pensions. We didn't employ them, we didn't cause them to get old and need to retire. It's just plain bullying to say that a new Scottish government should be responsible for Scots in Scotland in the Scottish public sector."

To be fair, they would be entitled to a share of the pension pot, and also a share of the pension black hole too

[Ticktock]

To be fair, they would be entitled to a share of the pension pot, and also a share of the pension black hole too

How dare you. Yes, they should be entitled to a share of the pension pot. But to say that they should be responsible for a share of the black hole too is bullying and the proud Scottish people won't put up with it. They'll take the share of the pot, thank you very much, but expert legal opinion (which can't be disclosed) has said that you can't make them pay up anything in return, so there.

[doodab]

To be fair, they would be entitled to a share of the pension pot, and also a share of the pension black hole too

There is no pot AFAIK. Just future tax revenue and borrowing. Better get ready to start running a deficit.

Edit: I think I've figured out Salmond's negotiating position. Pay us, or we won't actually go....

[MicrosoftBob]

Edit: I think I've figured out Salmond's negotiating position. Pay us, or we won't actually go....

Damn they've found our weak spot

[scooterscot]

Yep, they sure can! Most likely, a newly independent Scotland would create it's own fiat currency with an exchange rate pegged to the Pound. The crucial difference is that they won't have the Bank of England as a lender of last resort to bail them out if they default on their debts. Do you see the important difference?

As for a more stable financial system and economy, don't make me laugh. Have we forgotten that it was the Royal Bank of Scotland (based in Edinburgh) that needed to be rescued?

I be surprised as the next person if Scotland created a new currency in the next seven months. Not enough time. Most likely the pound shall continue to be used. That is the plan like it or not.

Why folks bang on about the Bank of England being the lender of last resort when England themselves had to go begging to the IMF cap in hand in 76. What are you trying to convince me of exactly? We won't bail you out but the IMF will like they did us?

[scooterscot]

To be fair to Scotland here, señor Barroso has his own axe to grind. Spain is dealing with it's own amicable but determined independence bid from Catalonia (much like Scotland) and the armed separatists in the Basque region (more like Northern Ireland). If Scotland become independent and immediately get welcomed into the EU or EEA with open arms then that leaves an unwelcome precedent...

Scotland is not a nation of armed separatists?

[doodab]

I be surprised as the next person if Scotland created a new currency in the next seven months. Not enough time. Most likely the pound shall continue to be used. That is the plan like it or not.

Why folks bang on about the Bank of England being the lender of last resort when England themselves had to go begging to the IMF cap in hand in 76. What are you trying to convince me of exactly? We won't bail you out but the IMF will like they did us?

The IMF won't bail you out unilaterally like they did Iceland if you're part of a currency union. They will expect the other members to help like what happened in the Eurozone. Ergo, when your economy goes tit's up, we'll end up in line to bail you out. There is zero chance you'd ever be able to return the favour, so it's a lose-lose for us.