Scot Indy Ref #2

tangled_metal

Pegging your currency isn't the same as using another country's currency. It's accepted way for minor currencies to gain stability I believe. Is it something to do with a small gold reserve to back the currency up or size of economy?

I just hope that if or when Scotland leaves the union it has it's currency planned and how the transition will go. Obviously agreed with rUK. Let's hope rUK won't follow the EU with wanting to stiff Scotland over independence. Plenty of opportunity to do that I reckon.

Still, might not happen but it'll be another divisive clusterfack like Brexit I bet. If the SNP handles their side as well as their handling the devolved matters up there then expect difficult times indeed.

kingstongraham

In Bermuda, it is pegged at 1:1, and either Bermuda or US dollars can be used in any shop bar etc.

But the principle remains the same. If Scotland used a "Scottish dollar" that was pegged 1:1 with the pound (GEP?) and allowed both to be used in any situation, that in no way means that Scotland is not independent from England. They could peg to the US dollar if they think that is likely to be more stable.

Stevo_666

kingstongraham said:

In Bermuda, it is pegged at 1:1, and either Bermuda or US dollars can be used in any shop bar etc.

But the principle remains the same. If Scotland used a "Scottish dollar" that was pegged 1:1 with the pound (GEP?) and allowed both to be used in any situation, that in no way means that Scotland is not independent from England. They could peg to the US dollar if they think that is likely to be more stable.

It is not without downsides or risks and does take away quite a few things you might expect a fully independent nation to be able to do. For example:
https://theglobeandmail.com/report-on-business/economy/economy-lab/why-fixed-exchange-rates-dont-work/article617163/

https://thebalance.com/fixed-exchange-rate-definition-pros-cons-examples-3306257

Our own experience with the ERM in the early 90's didn't end too well (albeit that was a restricted range rather than a 'hard' fix to one rate)

kingstongraham

It's only a temporary measure though - maybe they should just adopt the Euro like Andorra.

Stevo_666

kingstongraham said:

It's only a temporary measure though - maybe they should just adopt the Euro like Andorra.

Not sure that is different in principle from a currency peg.

It is currently used by 4 European microstates so I suppose it could be an option.

rick_chasey

If leaving the EU is one of the arguments for having a ref on Scotland, I don't really understand the sovereign currency argument, as if it were to join the EU it would have to join the Euro.

Assuming the Spanish or any other nation with separatist issues wouldn't automatically veto their entry into the EU, which they inevitably would.

haydenm

tangled_metal said:

Pegging your currency isn't the same as using another country's currency. It's accepted way for minor currencies to gain stability I believe. Is it something to do with a small gold reserve to back the currency up or size of economy?

I just hope that if or when Scotland leaves the union it has it's currency planned and how the transition will go. Obviously agreed with rUK. Let's hope rUK won't follow the EU with wanting to stiff Scotland over independence. Plenty of opportunity to do that I reckon.

Still, might not happen but it'll be another divisive clusterfack like Brexit I bet. If the SNP handles their side as well as their handling the devolved matters up there then expect difficult times indeed.

I think there is more opportunity for that than in the EU scenario because the rUK could very easily vote in someone who 'takes a hard line on Scotland' as part of a much larger populist manifesto without really caring a great deal or even noticing

Stevo_666

rick_chasey said:

If leaving the EU is one of the arguments for having a ref on Scotland, I don't really understand the sovereign currency argument, as if it were to join the EU it would have to join the Euro.

Assuming the Spanish or any other nation with separatist issues wouldn't automatically veto their entry into the EU, which they inevitably would.

Agree with both points.

Not sure where that leaves Scotland. Apart from a peg to Sterling or trying to invent the Scottish Peso.

rick_chasey

Well this is what the SNP really ought to outline. The challenge is is that once you start articulating the type of seperatism you want and how it is going to function, people who are in principal *for* seperation may vote against that specific type.

So it is not in their interest to articulate it.

Alas, as Brexit shows, that does not a good exit make.

john80

surrey_commuter said:

john80 said:

surrey_commuter said:

john80 said:

aberdeen_lune said:

Yes the six Tory seats not good. Andrew Bowie what an embarrassment local to me too. Not to mention the Moray chap. Still it’s a democracy. But 6 is such a minority. Anyway at least in Scotland the Tory MPs are mostly in well off areas. In Engerland a lot of the Tory voters were folk on benefits, WTF!!!

If we take the percentage of people on benefits and then how many of them voted tory i am keen to hear your definition of a lot.

I believe most people are on some kind of a benefit so I would guess he is right with “a lot”

Alan sugar gets winter fuel payments. Is this the sort of most people get benefits logic you are running.

Maintaining triple lock is well worth voting Tory for if you are a pensioner. But other recipients of benefits are parents (kids under 18) earning under £60k. Must be a fair few on working tax credit so yes I imagine “a lot” of Tory voters are on benefits

This must be the big issues making people vote Tory that the left just cannot understand. Ho would then make do if the lost a couple of hundred pound in child benefit.

haydenm

I find it quite amazing that the last referendum was even entertained before we had an idea what we were voting for, same goes for brexit