General Election 2019 - Conservative with Majority

Just seen a grown man, in the loosest sense of the word, literally crying on his lasses shoulder because 'what future do we have with this murderous tory regime?'. I was unsubtle in my laughing my arrse off. And this is in a boozer in Bow. The East End ain't what it was.
He was probably her limp-wristed brother.

You might just have missed out on a legover opportunity there !
 

Jasenite

Swinger
Scotland could, if it wanted, use anything as its own internal currency, whether that be turnips, cattle or its own printed banknotes. It becomes a problem when they want to trade outside their country - do other countries recognise their currency and accept it as legitimate. It would have to be acceptable to the international money markets. Sterling is so Scotland could use UK currency, ie Bank of England banknotes and that in itself wouldn't be an issue. The point to remember is that even though Scotland could use Sterling, it would not, as a foreign country, be able to set any fiscal policy over the currency. If it is dependant on another country for its fiscal policy then it's not a truly independent country.
Montenegro has used the Euro since they split with Serbia. Perhaps Scotland could do the same, especially if their eventual aim is to join the EU.
 
Montenegro has used the Euro since they split with Serbia. Perhaps Scotland could do the same, especially if their eventual aim is to join the EU.
They could use any currency they want but if it's someone else's currency, not their own, then they are dependant on that country because of that country's fiscal policy. That makes them not an independent country but a dependant one.
 

Dicky Ticker

War Hero
Sorry I'm late, time zones and all that and I'm just catching up with all the posts from yesterday. I did notice a bunch or someones supporters gathering in London proclaiming that Boris was "not my president..." and wondered if the speaker of the house has promised to impeach him yet?

Or is that another country? I get confused, so much appears to be a bit deja vu like and sounds like we've been here before, a bit like the American version of the office and our version of the office only one was slightly funny and the other was just cringeworthy....
 
They could use any currency they want but if it's someone else's currency, not their own, then they are dependant on that country because of that country's fiscal policy. That makes them not an independent country but a dependant one.
I'm not sure about this (hence asking all the questions) but wouldn't they be dependent in name rather than reality (de jure rather than de facto)?

It would effectively be a country saying "We can't afford to make our own currency so we'll buy in someone else's", the same with any large scale procurement deal. I understand that the exchange rate of that currency is outside of their control but they can still set their own interest rates, national borrowing etc.
 
I'm not sure about this (hence asking all the questions) but wouldn't they be dependent in name rather than reality (de jure rather than de facto)?

It would effectively be a country saying "We can't afford to make our own currency so we'll buy in someone else's", the same with any large scale procurement deal. I understand that the exchange rate of that currency is outside of their control but they can still set their own interest rates, national borrowing etc.
I'm not an economist so don't know how these things work in actuality but even though Scotland would be independent in pretty much every area if they had to use another country's currency there is some vestige of dependency, meaning true independence has not been gained. Everything the UK does with its currency and economy would directly affect Scotland.

If Scotland wants to be independent of the UK but joins the EU it is still not independent, just swapping one union for another.
 
I'm not sure about this (hence asking all the questions) but wouldn't they be dependent in name rather than reality (de jure rather than de facto)?

It would effectively be a country saying "We can't afford to make our own currency so we'll buy in someone else's", the same with any large scale procurement deal. I understand that the exchange rate of that currency is outside of their control but they can still set their own interest rates, national borrowing etc.
I'm not sure that the previous answer is strictly accurate. In the run up to independence Scotland has two choices, monetary union with Britain or monetary independence (ignore the Euro for the moment).

Option 1 means Scottish interest rates being set by the Bank of England with Scotland having no input into how they are set. They will also have to use BoE notes for the reasons stated below.

Option 2 is interesting. Scotland will need to acquire Sterling and will have to withdraw Scottish pound notes from circulation prior to independence and replace them with BoE notes. The BoE will not countenance the printing of Scottish "Sterling" notes by a foreign country (remember Channel Islands notes are not valid in the UK, although BoE notes are valid in the CI). For the Scottish government to borrow money it will have to issue Sterling bonds at an interest rate that is high enough to attract investors. This means that Scottish interest rates will be a lot higher than British ones.

Once everyone in Scotland has BoE Sterling notes independence can happen. These can then be converted into any hard currency that Scotland wishes to use, so on independence day Scotland could immediately switch to the Euro or the US Dollar (handy for oil sales) and issue bonds for the relevant currency with very high interest rates.

The reason that the Euro is such an economic disaster is monetary union, i.e. that all of the EU countries that use it have their interest rates set by Germany, and they are low because it suits Germanys requirements. So Greece was able to issue bonds (i.e. borrow) at the same stupidly low interest rates as Germany, over borrowed and went belly up when their economy overheated and when bond repayments were due. Not being a part of monetary union this wont happen to Scotland. However the market will decide Scottish interest rates and will decide if Scotland can borrow anything.
 
Option 3 is Scotland prints its own currency which will almost certainly not have parity with Sterling and will reduce the government's ability to borrow internationally, unless it borrows foreign currency for international trade purposes. If Scotland does at some point join the EU it might be better if it is already using the Euro under the circumstances described in option 2.
 

NSP

LE
(remember Channel Islands notes are not valid in the UK, although BoE notes are valid in the CI
Interestingly, their coins are valid on the mainland, as they are identical to ours. They do still use pound notes alongside pound coins, though, the relics.
 

NSP

LE
Option 3 is Scotland prints its own currency which will almost certainly not have parity with Sterling and will reduce the government's ability to borrow internationally, unless it borrows foreign currency for international trade purposes. If Scotland does at some point join the EU it might be better if it is already using the Euro under the circumstances described in option 2.
They want to be in the EU. They'll be using the Euro. And be part of Schengen. Whether they want it or not.
 
I'm not sure about this (hence asking all the questions) but wouldn't they be dependent in name rather than reality (de jure rather than de facto)?

It would effectively be a country saying "We can't afford to make our own currency so we'll buy in someone else's", the same with any large scale procurement deal. I understand that the exchange rate of that currency is outside of their control but they can still set their own interest rates, national borrowing etc.

The Irish currency (the 'Punt') was pegged to the pound until 1979. The notes and coins were different but you could swap them one for one in NI and ROI (in my experience).
 

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