Scotland's new currency

[doodab]

Scotland is not a nation of armed separatists?

Neither are the Catalonians.

[scooterscot]

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."

Makes good sense. When you think about after all wages in the north are depressed against those in the south, for exactly the same job. The liabilities should be met by all post UK taxpayers until they are expunged. A bit like how Western Germany pays more tax towards Eastern Germany for all the sheet they've had to put up with.

[Troll]

Scotland is not a nation of armed separatists?

They did carry out biological warfare against England though

[scooterscot]

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.

Scotland consistently voted for a different government over the years. Since it was a Westminster government that put the black hole pension policy into place then that's where the responsibility lies. Simples.

[doodab]

Scotland consistently voted for a different government over the years. Since it was a Westminster government that put the black hole pension policy into place then that's where the responsibility lies. Simples.

Lots of people voted for a different government. That's the way representative democracy works.

You also voted labour. A lot. If you think that would have kept the pension bill down, well, good luck for the future but it ain't what you're imagining.....

[scooterscot]

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.

Now Scotland is part of the eurozone? Make up your minds. One minute it's the next it's out.

Why would the Bank of England have any authority over the IMF about who and who not they can lend to? Particularly so if Scotland is using the pound?

[scooterscot]

Lots of people voted for a different government. That's the way representative democracy works.

You also voted labour. A lot. If you think that would have kept the pension bill down, well, good luck for the future but it ain't what you're imagining.....

I've voted once in my life and that was the green party.

[Ticktock]

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?

Oh dear. I hadn't realised you were quite that ignorant. I'd assumed you were playing up your stupidty in order to troll. Unless this is a troll also and I've fallen for it.

Lender of last resort refers to the BoE lending to the market, financial institutions, banks. They provide money (liquidity) to a bank.
The 1976 loan was not to give the banks money - it was to give the government money as they did not have enough to pay their bills.

So, for an example of what you might expect to see in a few years:
Scottish banks are facing liquidity issues and needing to turn to a lender of last resort. Not having the BoE to turn to, and not having been allowed to join the EU or the Euro, they turn to the Scottish Central Bank, who turn the photocopiers on full blast to provide some cash.
Meanwhile, the Scottish government, having overspent and got themselves in trouble suddenly find no-one will lend to them, or only at extortionate interest rates, as they decided to walk away from the debts they owed when they went independent and were denied a currency union. They then need to bend the knee for a loan from the IMF.

HTH BIDI

[MicrosoftBob]

Scotland consistently voted for a different government over the years. Since it was a Westminster government that put the black hole pension policy into place then that's where the responsibility lies. Simples.

But it was Scottish politicians in Westminister that caused the deficit, and the pensions black hole.

[scooterscot]

Lender of last resort refers to the BoE lending to the market, financial institutions, banks. They provide money (liquidity) to a bank.

But that's the point. They don't provide money. They print it. First they prepare some IOU's, wrap them up as bonds and sell them to some mug. Then the printing presses fire up.

Astonishingly nothing of value has been created but nevertheless the UK currently considers itself a wealthy country. We've no idea what wealth is if we really believe this.

We should never have left the gold standard.