AIBU to thinks what's the point

[Sadoldbag]

Now the governor of the Bank of England has now said if Scotland keep the pound we have to also have a political Union Scotland will not keep the pound with out it

So what's the point unless there planning to bring in to go with the euro can someone explain

A country has to have its own currency for a few years before they can have the Euro I believe. There was an article on Radio 4 this morning

Personally I think this and weather or not they can join the EU on the back of us are the real tests really

And it's not looking good form what I see the president of the EU has already said Scotland won't be able to piggy back on the back of us and will have to joking from starch has a new country which will take years.

The Yes Campaign is in favour of keeping the pound. Within his speech he clearly says that there are benefits to a currency union, which there are.

In the event that we got independence the currency union would be dependent on the Scottish Government and UK Government coming to an agreement, which personally I can't see not happening despite what the UK Government are saying at the moment. They know it is better for the rest of the UK to stay united with Scotland. It isn't better for Scotland.

If Scotland votes yes, I think they should sort everything out for themselves, including their currency. Maybe they could have groats.

Any particular reason?

You do realise that an Independent Scotland keeping the pound would benefit the rest of the UK as well don't you?

I watched the statement and mark carney clearly said no fiscal union with out political union so he would want control over rates ECt so what would then be the point of being independent

Actually I think he said "An effective union would also force a newly-independent Scotland to hand over some national sovereignty"

The details of a currency union would be decided between the UK Government and the Scottish Parliament and is therefore assumed negotiable. Alistair Darling has stated that for a Independent Scotland to use sterling is the most desirable arrangement for both Scotland and the rest of the UK.

He also clearly stated the benefits of a currency union for both Scotland and the rest of the UK.

The point of becoming independent would remain as it has always been. The main point being the ability for Scotland to vote in their own Government into power. They would then be on equal footing to the UK Government where a currency union was in place but would ultimately be able to make the right choices for our people and economy.

He in the third paragraph being Mark Carney

MMV please can you explain why having a currency union would be beneficial for both Scotland and the countries remaining in the Union? This is contrary to the information I have heard, particularly in relation to Scotland who could experience severe difficulties with regards to adjusting interest rates when needed. Thus has been clearly evidenced with countries in the Eurozone.

Additionally, if Scotland wants true independence why would they wish to be tied to the currency of the Union?

Scotland is the 2nd biggest export market after USA for the rest of the UK, the rest of the UK exports £60million into Scotland. Why on earth would the UK after a yes vote turn it's back and force it's own businesses into a separate currency against their will?

Secondly - Scotland's exports are principally oil and gas, oil and gas make a substantial contribution to the UKs balance of payments, if you take that out of the UK balance of payments you will deepen the deficit and that would damaging to the sterling currency.

Thirdly - Sterling is a shared asset the pound is as much Scotland's as it is the rest of the UKs.

I think a large amount of oil and gas will stay within the UK not Scotland. I also wander about the exchange rate and tradability of a new untested currency.

The White Paper gave 5 key reasons for sticking with the pound:

1. the UK is Scotland's principal trading partner accounting for 2/3 of exports in 2011, whilst figures cited by HM Treasury suggest that Scotland is the UK's second largest trading partner with exports to Scotland greater than to Brazil, South Africa, Russia, India, China and Japan put together

2. there is clear evidence of companies operating in Scotland and the UK with complex cross-border supply chains

3. a high degree of labour mobility - helped by transport links, culture and language

4. on key measurements of an optimal currency area, the Scottish and UK economies score well - for example, similar levels of productivity

5. evidence of economic cycles shows that while there have been periods of temporary divergence, there is a relatively high degree of synchronicity in short-term economic trends

I agree with you though. It's not independence.

Further to the above (which are Nicola Sturgeons view point)

I have copied across part of today's transcripts

"The benefits of a currency union are clear for both sides in terms of issues like promoting investment, eliminating transaction costs, reducing borrowing costs and facilitating the movement of labour and capital, and we welcome the governor's recognition of these benefits."

Why do you think the is a No Campaign? It isn't because if/when independence comes into affect at any point in the future there will be a negative affect on Scotland. Scotland is an economically wealthy country and the research gone into the yes campaign has proven we will survive just fine as a independent wealthy country.

I think a large amount of oil and gas will stay within the UK not Scotland

Yes a large amount but not the majority amount.

It isn't because if/when independence comes into affect at any point in the future there will be a negative affect on Scotland.

Can you expand on this? Are you saying that there is no chance that independence will have a negative effect on the Scottish economy?

Meepmeep I wouldn't bother given the level of debate on this thread so far - and the bias toward posters being English (eg OP twice says "us" when she means either "me" or "England".)

Thread moved on since I started typing...

BrandNewIggi It may have moved on but I still think you are correct. I am away to bed resisting the juvenile urge to post the Mel Gibson/William Wallace freedom picture

But lastly Santana Maybe I should have worded that better. That isn't specifically what I meant no. What I meant is the No Campaign bases a lot of it's reasoning against independence on Scotland not being able to cope being an independent country. This is not their primary concern and yet they lay heavily on this.

The primary concern as it appears is that the rest of the UK will suffer by Scotland leaving the Union and they are against this.