Scotland's new currency

[AtW]

Yes, the Treasury would expect Scotland to honour their part of the debt.

No pound union - no debt assumed, that effectively follows from Osborne's refusal.

If Scotland didn't pay, investors would almost certainly treat that as a default - regardless of what anyone says. That's why Salmond isn't pursuing this as a direct strategy, because he knows he could blow up in his face.

LOL no - effectively UK debt can't be CHANGED to another country - THAT would be technical default of UK gilts, so really the only debt Scotland could possibly assume is to UK (which will still be just without Scotland). Now that is entirely up to Scotland and it would be insane to accept it.

[stek]

I like 'The Scottish Malky' made up of 100 Wee Malkies...

[Bunk]

I think it should be the Scottish Franco

[VectraMan]

To be fair, I'm not aware of the SNP saying anything other than they would accept their share of the debt. Which makes this story an intention of the media (but please correct me if I'm wrong).

Scotland doesn't have to take on the existing gilts. The UK just has to accept an IOU from Scotland. The original debts are still guaranteed by the UK.

Scotland will have to raise money in the short term anyway, and realistically it'll be the UK lending it to them. We did it for Ireland

[swamp]

To be fair, I'm not aware of the SNP saying anything other than they would accept their share of the debt. Which makes this story an intention of the media (but please correct me if I'm wrong).

Scotland doesn't have to take on the existing gilts. The UK just has to accept an IOU from Scotland. The original debts are still guaranteed by the UK.

Scotland will have to raise money in the short term anyway, and realistically it'll be the UK lending it to them. We did it for Ireland

Scottish independence: SNP retribution plan over pound 'would cripple economy' - Telegraph

The warning came as Nicola Sturgeon declared that Westminster's refusal to join a currency union after independence would mean Scotland taking on none of Britain's public debt.

[tomtomagain]

Maritime law is pretty well established, so if separation happens then oil nearby Scotland will certainly be property of Scottish Govt - that's not really up to dispute, the real issue is whether there will be enough investment to get more oil and whether price of barrel of oil will continue to be at current high levels (that's doubtful).

Yes. I know. I agree.

But as I said. Why the assumption that Scotland gets to keep it? If I were the UK government negotiating the split my starting position would be

"You want access to our markets?"
"You want to use sterling?"
"You want our support so you can join Europe?"
"You want to shelter behind our army?"
"Then we'll have the oil. Thanks"

Nicola Sturgeon says Osborne is a "bully" for stating a position ( she actually says that about everything she doesn't want to hear ) but if she thinks the government is being tough today she'll be in for a shock come the split.

Divorces are messy.

[darmstadt]

where's the jokes? so far I've only seen one joke about independance...

As a Scotsman, I'm in two minds about how to vote in the independence referendum.

On one hand, I'd love to see our country keep the North Sea oil revenues.

On the other, the USA might declare us part of the 'Axis of evil' and invade.

[scooterscot]

Yes. I know. I agree.

But as I said. Why the assumption that Scotland gets to keep it? If I were the UK government negotiating the split my starting position would be

"You want access to our markets?"
"You want to use sterling?"
"You want our support so you can join Europe?"
"You want to shelter behind our army?"
"Then we'll have the oil. Thanks"

Nicola Sturgeon says Osborne is a "bully" for stating a position ( she actually says that about everything she doesn't want to hear ) but if she thinks the government is being tough today she'll be in for a shock come the split.

Divorces are messy.

It's this attitude that has led to Scotland having a referendum in the first place.

It is rather amusing that Osbourne's speech has effectively told the undecided a devo max option now exists. I can't help feel this was part of the Tories game plan from the beginning.

[scooterscot]

where's the jokes? so far I've only seen one joke about independance...

Tell you listen to wee Limmy, he makes good sense he does.

[doodab]

Just like Iceland eh? Now with stronger growth than the UK, minus toxic banks.

Fighting Recession the Icelandic Way

Iceland didn't walk away from it's debts, it just let it's banks walk away from theirs. If Scotland did that they could kiss edinburgh's up and coming financial centre status goodbye.

In addition to easing consumer debt, Iceland reduced government spending and increased revenue by raising taxes and cutting deductions that mainly benefited the well-off,

Iceland’s debt stands at almost 100 percent of GDP. Many of the country’s professionals have left for Norway and Denmark amid a dearth of jobs. Iceland still must figure out how to ease constraints that barred investors from withdrawing as much as $8 billion from the country and transferring it overseas. Inflation remains stubbornly high. To counter that, and to prevent capital flight, Iceland’s central bank has increased interest rates five times in the past year. But raising interest rates makes credit more expensive, checking growth.

Plus of course they had to borrow billions from the IMF. There goes your "no debt" economy....