Agree. But I wouldn't have thought that a Scottish firm borrowing in GBP would have to pay a materially higher interest rate after independence than a UK company would if Scotland simply chose to use the pound. There are a number of short term advantages in having control over your money supply and exchange rate but the long term effects seem much smaller. Ecuador and the Bahamas seem to do no worse than their peers despite relinquishing control of their currency.
Exactly the same one as for the UK being in the EU and not using the Euro? That is apparently so overwhelming that labour and tories both support it.....
An independent Scotland's' credit rating would be decided after the event. In my view, it would not be good. With no, or a very new and untried central bank, their rating would certainly be way below that of the current UK rating.
Ecuador and Bahamas may use the USD but neither are very vibrant economies. Hardly one you want to model yourselves on.
Ecuador is 9th out of 12 south American nations in South America for GDP. Earning about half what more prosperous South Americans make.
Not just all the banks and industry leaving Scotland. Even the loch Ness monster is leaving: http://m.huffpost.com/us/entry/5807358 That's got to cut your tourism industry in half.
I agree and yes I did live through it. The point that it seems is difficult for people to grasp is that I know who they are, I know who Adam Smith is and I know who the Director is, (Indeed my wife used to work with him many years ago in London). People were mocking Alec Salmond for saying that he would use the Pound with or without a currency union. That will never work etc etc, then along comes the Director of the Adam Smith Institute and explains why it would work and why the BoE would have to take into account Scotland in it's decision making. One reason being that Scotland is England's biggest customer. This is a good link because the Director can hardly be accused of bias towards YES or Salmond can he. This has not as far as I know been reported by Pravda, sorry I mean the BBC.
Why would you think that? The Scottish economy is stronger than the rUK, with a balance of trade surplus, far less of a debt problem. Scotland in the words of a former treasury advisor, currently Scottish government advisor, will be AWASH WITH MONEY, following Independence. He discovered the true picture 20 years ago when working in the Treasury which prompted his move to Scotland. The true picture of the SCottish economy is supressed it is this wealth contrasted with the low wages in Scotland that is the driving force of the YES movement. Make no mistake Scotland is richer per capita than the rUK.
They will be biased towards a yes vote if they think there is greater profit opportunities for the rich than there would be by promoting no. Madsen Pirie was at the heart of policies to privatise everything in the UK. He obviously sees areas that his friends can exploit if Scotland becomes independent as it is possible that the next UK government may not be right wing.
That's very contingent. A) on the price of oil, b) on the cost of extraction, and c) on the very much disputed amount of economically recoverable reserves. The price of extracting North Sea Oil has risen sharply recently, and shows no sign of abating. I have supplied a link from The a Guardian lest I be accused if spouting conservative propaganda. It quotes Sir Ian Wood, who should know what he's talking about re the oil industry. http://www.theguardian.com/business/2014/aug/21/questions-value-scotland-north-sea-oil-highlighted As to currency union. Both the chancellor and the governor of the BOE have dismissed it as an option. It won't happen.
Confidence is the biggest issue for the economy of an independent Scotland. And if the banks aren't confident.... And big businesses don't like to take risks - or if they do they want a fall back/get out position. Many retailers have already said they will put up prices. Distribution costs etc for predominantly English based companies in Scotland are absorbed as part of the costs of the overall business. When considered as a separate entity - because of currency, tax or whatever other considerations arising - it's a whole different ball game. Stop being naive. However strong Scotland's economy is as part of the UK is no guarantee of how strong it will be after independence.
They will be biased towards a yes vote if they think there is greater profit opportunities for the rich than there would be by promoting no. Madsen Pirie was at the heart of policies to privatise everything in the UK. He obviously sees areas that his friends can exploit if Scotland becomes independent as it is possible that the next UK government may not be right wing.
That's not what he said. He explained a very specific way in which it could work, but which hasn't even been suggested by any of the major parties, as far as I know. It would actually be the complete opposite of what you want for an independent Scotland, too. You're removing the explanation of how it could work and simply going with the fact that he said it could, completely ignoring the conditions that he claims it would require.
"The Scottish economy is stronger than the rUK, with a balance of trade" Deficit of over 12.5bn to UKminus, 0.3bn to non UK.
Not their finest hour, but they obviously wrote this with the vote in mind [video=youtube;ZT8oGa3XTTw]http://www.youtube.com/watch?v=ZT8oGa3XTTw[/video]
Sir Ian Wood? The same guy who is a supporter of the Better Together campaign? Watch me pay attention to anything he says, in fact try and imagine me listening to anyone with a title given him by the Establishment. http://newsnetscotland.com/index.ph...-sir-ian-woods-oil-intervention-was-political
Ok so let's suppose the no vote wins and Scotland will wake up next morning in its usual unhappy mood so things continue as normal. But then let's suppose the yes vote wins and Scotland wakes up buoyant and getting plastered on whisky in a state of complete euphoria. How long before the said euphoric mood wears off and then gloom sets in again when the reality of an independent life hits home.
