The SNPs plans for our money are almost indescribably risky. We know that a currency union would not work. When the Czech Republic and Slovakia tried, people in Bratislava simply lodged their money in Prague and the system was brought down not by spivs in suits, but by ordinary people who knew a shambles when they saw one. Sterlingisation - simply using a foreign countrys currency in the way some developing regions use Dollar - could be worse. There would be no control over interest rates and no central bank to act as a lender of last resort. We all know from the banking crisis how vital this function is, and to leave Scotland without this backup would surely be unthinkable. And now, Alex Salmond is hinting at something even worse - temporary sterlingisation. To tell the markets that you have no faith in your own currency is to invite disaster. What on Earth would happen to our pay, benefits and mortgages during this chaos? The nationalists have no answers, and that is why we are saying no thanks.
Posted on: Wed, 20 Aug 2014 09:08:57 +0000
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