Did Salmond Actually Think It Through?

[youngmafbog]

So what was Salmond smoking when he thought he could automatically keep the pound and stay in the EU? for many of us it was the immediate question but he seems to have assumed from the start a status quo.

I still dont see how Scotland can have full independance with the pound and I also can't see the point of fighting for independance only to sign up to the EU Masters to become a slave of Germany.

I like this quote:
However, the Chancellor will have to wake up to the fact that he cannot lay claim to assets to which Scotland has a share - such as the Bank of England

Err - Back of England Salmond - the clue is in the name, it is not the Bank of Britain!

And if the assets are shared then surely the vote in/out should be for the whole of the UK since they are directly affected?

And from Jose Manuel Barroso, president of the EU's ruling body, the European Commission: "Scottish membership would be extremely difficult, if not impossible". With the likes of Spain struggling with separatists is id highly unlikely Scotland would get an easy ride.

I'm still backing Salmond for a Yes vote though.

[mushroom25]

but Heathfield, the bank of England is directly accountable to the treasury.
http://www.bankofengland.co.uk/about/Pages/parliament/default.aspx

[emmie]

as above. ^^^

[emmie]

crossed post. that was for sir.prize

[emmie]

in case one doesn't want to read the link x

The Bank is principally accountable to the House of Commons Treasury Committee through:

regular hearings on the Bank’s Inflation Report and Financial Stability Report with Monetary Policy Committee (MPC) and Financial Policy Committee (FPC) members
and appointment hearings for new MPC and FPC members to assess their professional competence and independence

Following the appointment hearing, the Treasury Committee publishes a report of its assessment of each MPC and FPC appointee. The reports are made publicly available on the Treasury Committee website. The board of the Prudential Regulation Authority (PRA) – the Bank subsidiary regulating individual financial institutions – is also accountable to Parliament. PRA board members also appear before the Treasury Committee.

The House of Lords Economic Affairs Committee occasionally holds hearings with Bank officials on monetary policy and financial policy.

[mushroom25]

at this time, it's all largely speculative. Scotland will vote "yes" or "no" to independence. If there's a "yes" after that, it will be for the electorate of Scotland to decide what independence looks like (that's not what they're deciding this year). There will need to be an election, in which each contending party for government will set out their manifesto. It may be that not all parties will campaign for EU membership or the keeping of Sterling, and it's by no means certain that the electorate will vote for either. It's also no certainty that Mr Salmond would necessarily be the first minister (or president, or ceann-cinnidh, or whatever the country decides the leader will be called).

[emmie]

if they split, i sincerely hopes its down the line.

[Gromit]

How did the Irish use the pound on parity with Sterling for 50 years and still be independent? The Irish broke their currency's link to sterling themselves when Labour devalued it. Until then, they were quite happy to surrender control of their currency to the Bank of England because they knew it would be more stable than their own.

The notion the Scots can't use sterling is a political rather than an economic argument.

[emmie]

then why has Mark Carney spoken with Alex Salmond about it, he isn't political, he has a job to do.

[youngmafbog]

Gromit, the world has changed massively, especially in currency markets since 1974 and certainly since 1922. Your comparison is no longer relevant really.

[youngmafbog]

//quite happy to surrender control of their currency //

Well I think you may have hit the problem square on the head there.

I dont think the Scotthish who vote for Independence will want to surrender anything, and the rest of the UK wont want the Scottish interfering and running them either.

[LazyGun]

Regarding the currency, the Scots could fix their currency to the sterling standard, rather like southern american countries fix their currencies to the US dollar. Does not affect the US Federal Reserve.

Interesting article on the currency options for an independent scotland here;

http://www.wealthynation.org/the-pound-without-permission-part-four/

[jomifl]

LG, they won't be able to adopt the euro unless they are members of the eu and that doesn't look likely, sterling seems to be inaccessible so that just leaves 2 options.

[Gromit]

// they won't be able to adopt the euro unless they are members of the eu and that doesn't look likely //

Incorrect. They can unilaterly join. Kosovo and Montenegro, both non EU members, have the €uro as their currency.

[jomifl]

Ta for the correction Gromit. Do they have full euro membership or are they 'satellite'' members..

[Gromit]

I swear I am not Alex Salmond, but he has just said exactly what I posted earlier on this thread.

// Alex Salmond has insisted that Scotland will be able to keep the pound and join the EU if the country votes for independence as he accused the Chancellor of "arrogance" by ruling out a sterling currency union.
Refusing to consider a Plan B currency, the First Minister predicted that “common sense” would prevail if Scots vote to separate and George Osborne would drop his opposition to Scotland keeping the pound.
He claimed that a combined intervention by the Conservatives, Labour and Liberal Democrats last week in which they categorically ruled out any such arrangement was a mere campaign tactic.
Similarly, he said that the European Commission president’s warning that joining the EU would be “difficult, if not impossible” would prove inaccurate if there was a ‘yes’ vote in September’s referendum. //

[Gromit]

Jomifl

Kosovo are not even recognised as a country by 5 EU states, so are unlikely to join the EU anytime soon.

[Gromit]

Jomifl

Montenegro, from Wikipedia.

// Montenegro has no currency of its own. Prior to the introduction of the euro in 2002, the Deutsche Mark was the de facto currency in all private and banking transactions. When the euro was introduced and the Deutsche Mark yielded, Montenegro began using the euro as well without any objections from the European Central Bank (ECB). //

[sir.prize]

When the vote comes, Salmond will find no one wants him or his ridiculous independence.