Giantaxe

It's hardly a side issue for Scotland's banks given that their debts are largely denominated in pounds.

Editha

Please explain.

holly_1948

Ireland was, for roughly 50 years.

Giantaxe

The largest banks (Lloyds and RBS) have already announced that they will move to London to retain the B of E as "lender of last resort" and to be able to take advantage of likely lower borrowing costs there. Additionally, their current assets and liabilities are sterling-denominated. If Scotland moves to the Euro, those banks' existing liabilities will still be sterling-denominated but any new lending in Scotland will presumably be Euro denominated. The issue is thus one of currency risk for the banks. This is not equivalent to what happened when the Euro came into force, because the currencies that it replaced ceased to exist, and existing liabilities/assets were converted into Euros.

Novocastrian

Good post. In addition, the disappearing currencies had all been pegged to negotiated euro equivalent values before the euro was adopted.

The pound would (will) continue to float against the euro.

Giantaxe

Much of that time was during an era of fixed exchange rates, be it the Gold Standard or Bretton Woods. Really, only around 10 years were during the era of floating rates. The one to one equivalence between British and Irish pounds was really a "convenience" measure. By the time rates floated, Ireland had built up reserves to maintain parity. Otoh, it is true that when Britain devalued in the late '60's, Ireland did too.

And although the Irish pond was pegged to the British, they weren't fully interchangeable. Ireland accepted British currency, but the reverse wasn't generally true.

Editha

Interesting. Does it really come down to questions of banking for you? That is really quite strange.

Novocastrian

Not really. For AS it all comes down to *anking too.

Giantaxe

Where did I say that?? I was merely pointing out that the currency issue is a significant one for the banks and hence by extension for the Scottish economy.

J.JsOH

Up until now I have been undecided.
Now I would vote Yes. Not because of some ideal of independance, simply because as English born living in England I want to get rid of the whining Scots.
I became decided when I heard British political parties offering all kinds of sweeties for the Scots to stay. How is this right and fair to the English.
Should I have to move north of the border to get sweeties too?

I am fed up with hearing some (note I say some) Scots crowing about how they want to be free. Well bugger off and be free and don't bother us ever again.

rebs

I think that is quite an important point... if there is a 'no' vote and many additional powers are devolved, I think there could well be widespread dissent in England about that.

I can't see how that could happen and we would continue to tolerate Scottish MPs in Westminster voting on matters that do not affect them.

lf1

If I were in your shoes I would feel the same way too, just as I did in Canada when Quebec whined. If I thought a yes vote would put an end to the incessant whining I might be tempted to my 'x' in that box, but I doubt the whining will stop.

J.JsOH

Right, I feel that a yes vote will torture us all with years of 'negotiation' as a seperating Scotland tries to take as many things with them as they can grab. Similar with a no vote.
It all puts me off visiting Scotland ever again.
Fortunately there is a haggis manufacturer here in Norfolk and a Whisky distiller (although can't stand whisky myself)

dunroving

Whatever the outcome I wish it would be followed by an embargo on having to see Alex Salmond, Alistair Darling, Nicola Sturgeon and Gordon Brown on telly. I'm sick of the sight of them.

lf1

+1