Scottish currency to be worth less than pound.

[D Angelo Barksdale]

13 minutes ago, Stormzy said:

Imagine disliking that OP... Embarrassing stuff, close your eyes, fingers in the ears, mask on and don't move til Nicola says it's safe to do so. 

Tbf I did like the third line in...

'He said that there was no doubt " an independent Scotland would be economically viable" '

[Terry_Tibbs]

1 minute ago, Henderson to deliver ..... said:

Tbf I did like the third line in...

'He said that there was no doubt " an independent Scotland would be economically viable" '

Bulgaria is economically viable. Economically viable and prosperous aren't synonymous.

1 hour ago, BigDoddyKane said:

Quick question how does he work out that exports to england would drop by 15%, if Scottish currency is cheaper it would surely increase exports and possibly cancel out any border issues

There would be a transitional period where we'd still be using the Pound. If the Scottish Government decided to enter a customs union with EU, en route to rejoining, that would mean a hard border. At that point there would be the additional costs, without the beneficial effect of cheaper exports. If trade drops with England in the short term it may not fully recover, particularly if there is an acrimonious divorce.

 

Edited May 21, 2021 by Terry_Tibbs

[SANTAN]

3 minutes ago, Henderson to deliver ..... said:

Tbf I did like the third line in...

'He said that there was no doubt " an independent Scotland would be economically viable" '

"Viable" doing a lot of heavy lifting. 

Jellyfish swimming around the floor of the ocean that scran their babies for sustenance have a viable existence. 

Edited May 21, 2021 by Stormzy

[Bairnardo]

Just now, Pato said:

Seeing as Transnistria's being brought up again like it's a bad thing check oot their coins

Bored at work? Get your poor Scottish worldly savings out of your threadbare sporran and knock out a game of POGZ

[Terry_Tibbs]

43 minutes ago, Marshmallo said:

One dollar is worth less than one pound and it's held the USA back massively. Scary stuff.

^ Dunning–Kruger effect.

[Bairnardo]

Just now, Pato said:

Tovarich I give three plectrum for goat, is good deal yes?

As a productive maker of fresh pizza, bread, smoked foods and beer, I am well placed for a future of horse trading and bartering. Bring it on I say. 

[D Angelo Barksdale]

Also, "it is possible the exchange rate could increase over time or it could worsen" 

This is big brain wall street stuff here.

[DeeTillEhDeh]

Just ignore the trolling OP.

[yoda]

Tony Mackay had been pretty consistent in this view on Scottish independence. He obviously doesn't support it but he's repeatedly said that it is viable but that there's risks. It's an objectively fair position to take.

Whilst I don't want to go up against the big hitting economic minds of Terry Underscore Tibbs or Stormzy, arguing that "well the currency will be weaker than the pound" isn't that much of a slam dunk. They obviously didn't read the rest of the article either - specifically the bit where he says "initially". 

Anyway a strong currency isn't necessarily a good thing. Thatcher's policy of keeping the pound overvalued accelerated the deindustrialisation process. 

 

[Genuine Hibs Fan]

9 minutes ago, yoda said:

Tony Mackay had been pretty consistent in this view on Scottish independence. He obviously doesn't support it but he's repeatedly said that it is viable but that there's risks. It's an objectively fair position to take.

Whilst I don't want to go up against the big hitting economic minds of Terry Underscore Tibbs or Stormzy, arguing that "well the currency will be weaker than the pound" isn't that much of a slam dunk. They obviously didn't read the rest of the article either - specifically the bit where he says "initially". 

Anyway a strong currency isn't necessarily a good thing. Thatcher's policy of keeping the pound overvalued accelerated the deindustrialisation process. 

 

Yes but have you considered that strong sounds good and weak sounds bad?

[Bairnardo]

2 minutes ago, Genuine Hibs Fan said:

Yes but have you considered that strong sounds good and weak sounds bad?

Couldn't you have expressed this using the doggo meme?

[SandyCromarty]

Currency, Pensions and Borders.

Same Old, Same Old, Same Old Repetive Scaremongering Shite they were peddling in 2013/2014.

Independence is Inevitable.

The election result showed that.

[Suspect Device]

Quote

An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today

 

[GordonS]

2 hours ago, Terry_Tibbs said:

Source: https://www.heraldscotland.com/news/19306651.new-scottish-currency-worth-fifth-less-pound-sterling/?ref=ar

All economists are seemingly in agreement that public services will have to be cut in an independent Scotland with tax rises and falling incomes. The retired boomers, who own their own homes, might be alright but what about young families with mortgages? Who'd want their wages paid in a devalued sottish currency while their mortgages payments are 20% higher? Cue mass foreclosures.

"Mr Mackay said that with 60% of Scottish exports going to the rest of the UK, against 19% to the EU, an England-Scotland trade border would be a key issue, with negotiations possible taking a few years."

This is always a bit misleading as much of the exports to the rest of the UK are only going there for handling, processing or packaging before being exported to their ultimate customers in other countries. If you look at the final destination of exports then the rest of the UK is comfortably under half, which is pretty extraordinary when you think about it.

The major thing here though is that it's not a choice between a speculated future as an independent country and the status quo; because the status quo is changing all the time. In 2014 it was pitched in this way, but within a few years the UK was outside the EU and had taken a dramatic lurch to the right. Would we have voted No if we'd known what was coming?

The reality of the past 40 years has been that all the countries around the UK - especially the small ones - have outstripped the UK and are now mostly very considerably wealthier. The UK has a lower GDP PPP per capita than Ireland, Iceland, Norway, Sweden, Finland, Denmark, Germany, Austria, Liechtenstein, Switzerland, France, Luxembourg, Belgium and the Netherlands.

So the question is, do you think that the UK will catch up with those countries, keep pace with them or fall further behind?

I don't have any trouble believing that independence would come with an initial hit. I don't think it would be seen in cuts to public services though, it would be seen in higher public borrowing and maybe in taxation of higher income earners. But by following the Northern European economic model rather than the Anglo-American model, I think we'd start to pull away from the rest of the UK. It may be that we only stay where we are now, but we would be saved from being dragged backwards into their isolationist, delusional, flag-waving diet fascism. 

[Detournement]

The likelihood is that a Scottish currency would fall behind the GBP. That's just an unfortunate impact of having your sole land border being with one of the world's biggest money laundering operations. 

It's only really a big issue if all debt secured on Scottish property isn't converted to Scottish currency on its creation. You would also need to bring in tight rules about who can buy property but they have that in Denmark so it shouldn't hinder joining the EU (and if you join the EU you might as well join the Euro). 

 

Edited May 21, 2021 by Detournement

[GordonS]

1 hour ago, Pato said:

Seeing as Transnistria's being brought up again like it's a bad thing check oot their coins

Magnificent. I wouldn't know whether to spend them or lick them.

[Benjamin_Nevis]

@Terry_Tibbs should create threads more often. They make excellent herding pens for bigoted simpletons such as @The_Kincardine and pals. 

[Detournement]

6 minutes ago, GordonS said:

But by following the Northern European economic model rather than the

There's no Northern model anymore. There is the Eurozone and there is Norway. The Eurozone is as right wing and as unbalanced as the UK and we are never going to be Norway (who own 1.4% of global stocks and shares so Neoliberalism everywhere else funds their social democracy).

Edited May 21, 2021 by Detournement

[BigDoddyKane]

1 hour ago, Pato said:

Seeing as Transnistria's being brought up again like it's a bad thing check oot their coins

casino chips

[The_Kincardine]

33 minutes ago, yoda said:

Anyway a strong currency isn't necessarily a good thing. Thatcher's policy of keeping the pound overvalued accelerated the deindustrialisation process. 

 

Is this the new orthodoxy among you call centre worker and Excel jockeys?  Blame Thatcher for everything as it saves you from thinking?

As a former steel worker in Lanarkshire - and going on day release in Bell College for an HNC in metallurgy - the process of deindustrialisation started LONG before Her Maggieship.