Dimwits is an offensive word. https://archive.today/V76Zx Many of the things supporters of a currency union say are either untrue or are dumbfoundingly silly. We dont need our own currency, Ireland didnt for fifty years is my favourite example because all you have to do is look it up on Wikipedia and you find that Ireland launched its own central bank and the Irish pound from 1928. After that, all you have to do is to consider if Ireland 1922-1928 is really a sound economic model for Scotland in 2016. Really? Yes, microstates and micronations often Just use the currency of the surrounding nation: Panama is a special example because it uses the US dollar, and has done ever since with the backing of the United States, Panama seceded from Colombia in 1903, allowing the Panama Canal to be built by the U.S. Army Corps of Engineers between 1904 and 1914 and revenue from canal tolls is still a significant fraction of Panamas GDP today: its very convenient for the US that its all payable in US dollars, isnt it? But the cost to Panamans is that bank failures in Panama are not covered by the state: if you had your life savings in a bank in Panama and it fails, well, too bad for you. This is how you want Scotland to be be run, is it? Its our pound too! The Bank of England was founded by a Scot! is silly. The pound sterling is the UK pound. The Bank of England is the UKs central bank. If yes has the majority, Scotland would leave the UK. Any legislation written to allow Scotland to continue to make use of the UKs pound and to continue to have Scottish banks underwritten by the UK bank will be written at Westminster by the Tories, who have been persistently leaking or saying outright that no matter what Labour says, theyre in favor of a currency union. You trust the Tories so much you want to let them legislate currency union for Scotland, do you? A government operates on borrowing. A stable country with a flourishing economy can borrow ahead without fear, especially when borrowing from internal financial institutions with as much to lose if the government fails as the government itself. An independent Scotland with its own central bank and with UKFI banks (RBS, BoS, Lloyds, TSB) divvied up in accordance with rUK and Scotlands GDP, could borrow internally without fear. A Scotland in currency union with rUK, without its own central bank, would be borrowing primarily from its larger, richer neighbour - from the City of London. Control of the Scottish economy, control of Scottish spending policies, control of the oil money, would become a resource belonging to the City of London, to the Bank of England, to the Chancellor of the Exchequer. You like economic control from London so much youre prepared to lose 59 MPs in Westminster to have more of it, right? I decided I wasnt voting for this. But anyone whos advocating currency union either hasnt bothered to think this through/do some basic research, or has - and has decided they dont think Scotland can really be independent. And I disagree with that. I just wonder why, if you dont trust the Tories, dont want Scotland to be run from and for the benefit of the City of London, and do think Scotland could be independent, *youre* not rubbishing so-called Yes supporters who tell you not to worry, currency union will be fine. Because, really?
Posted on: Tue, 12 Aug 2014 08:33:50 +0000
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