Where's Red Celt when you want a laugh!?

[Rum]

From the beeb at: http://www.bbc.co.uk/news/uk-scotland-s ... s-25930075

Scottish independence: Carney says Scots currency plan may lead to power loss

By Andrew Black Political reporter, BBC Scotland


The Bank of England governor has said an independent Scotland would need to give up some power to make a currency union with the rest of the UK work.

Mark Carney said such a move, proposed by the Scottish government, "requires some ceding of national sovereignty".

He also said the risks of not having a strong agreement had been demonstrated by problems in the Eurozone.

Mr Carney's comments, in Edinburgh, came ahead of the Scottish independence referendum, on 18 September.


Nick Robinson, BBC political editor - "There are two words and one warning that really matter in today's speech by the Governor of the Bank of England - Mark Carney spoke of the "clear risks" involved if an independent Scotland tries to carry on using the pound......."
Robert Peston, BBC business editor - "Whether he intended to do so or not, Governor Carney has just lobbed a very large stink bomb into the centre of Edinburgh....

Scotland's Finance Secretary John Swinney welcomed Mr Carney's speech, saying it had recognised the benefits of a currency union.

Alistair Darling, leader of the Better Together campaign to keep the Union, argued the governor's remarks were "devastating" for the Scottish government's currency plans.

In the event of a "Yes" vote, the Scottish government said keeping the pound and retaining the services of the Bank of England, under a formal currency union agreement, was the best option for Scotland and the rest of the UK.

The UK government had said such an agreement would be "unlikely", and the deal would result in Scotland effectively having to hand over control of interest rates and borrowing levels to a foreign country.

In his speech, Mr Carney stressed arrangements for a currency union in the event of independence would be a matter for the Scottish and UK parliaments.

He added: "If such deliberations ever were to happen, they would need to consider carefully what the economics of currency unions suggest are the necessary foundations for a durable union, particularly given the clear risks if these foundations are not in place.

"Those risks have been demonstrated clearly in the euro area over recent years, with sovereign debt crises, financial fragmentation and large divergences in economic performance."

Mr Carney, who was speaking at an event hosted by the Scottish Council for Development and Industry, went on: "The euro area is now beginning to rectify its institutional shortcomings, but further, very significant steps must be taken to expand the sharing of risks and pooling of fiscal resources.

"In short, a durable, successful currency union requires some ceding of national sovereignty.

In Edinburgh today the Bank of England governor insisted he was not a politician and then proceeded to sound very like one: dodging tricky question after tricky question.

"Others will judge...it's for others to decide...that's clearly not what I said," he intoned, as a pack of politics and economics reporters pushed him on Scottish independence.

Nonetheless, the central message from this central banker was clear.

He does not want to preside over a Eurozone-style currency mess, whatever Scotland decides on September 18th.

As such he set out in dry, technocratic detail his views on the ingredients for a successful monetary union.

Expressed in simple terms, he said broad agreement on tax and spending between the nations sharing the currency would be needed.

No problem, says the Scottish government. We can do such a deal.

Big problem says the Treasury. We're not so sure.

So what of the governor's view? Would such a deal happen?

Oddly enough Mr Carney, the astutely political non-politician, declined to say.

"It is likely that similar institutional arrangements would be necessary to support a monetary union between an independent Scotland and the rest of the UK."

Earlier, Mr Carney, who has agreed to provide "technical" analysis of the issues ahead of the referendum, met privately with Scottish First Minister Alex Salmond.

Scottish Finance Secretary John Swinney welcomed Mr Carney's speech, including what he said was a confirmation that that Bank of England would implement whatever monetary arrangements were put in place, if independence happened.

Mr Swinney said the points made by Mr Carney had been investigated in detail by the Scottish government's Fiscal Commission.

He said: "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.

"An independent Scotland will control 100% of our own revenues, compared to the 7% of our tax base we are currently responsible for under devolution.

"A shared currency will mean an independent Scotland having control of tax policy, employment policy, social security policy, oil and gas revenues, immigration policy and a range of other levers to suit our own circumstances, helping to grow our economy, create jobs and secure a more prosperous and fairer society."

But Mr Darling, the former UK chancellor, said: "There is one clear message from today's thoughtful speech by Mark Carney the Governor of the Bank of England - that the failings of the Eurozone show that to have a successful monetary union you require fiscal and political union.

[DaveDodo007]

Don't you already have your own money?

[Rum]

Wot?

[Warren Dew]

From the beeb at: http://www.bbc.co.uk/news/uk-scotland-s ... s-25930075
Expressed in simple terms, he [Swinney] said broad agreement on tax and spending between the nations sharing the currency would be needed.

But Mr Darling, the former UK chancellor, said: "There is one clear message from today's thoughtful speech by Mark Carney the Governor of the Bank of England - that the failings of the Eurozone show that to have a successful monetary union you require fiscal and political union.

Interesting. There's no agreement at all on tax and spending between the 50 states in the dollar zone.

Then again, it could be argued that the dollar zone isn't too successful either, given the movement towards bitcoin.

[JimC]

Basically, the message is "If you guys leave, but still want the pound stirling as currency, then understand your fiscal policy will be controlled from London; eat my shorts..."

[Svartalf]

Well, the Pound Stirling ought to be a solely Scottish currency, unlike the Sterling

[JimC]

Well, the Pound Stirling ought to be a solely Scottish currency, unlike the Sterling

Got me there nicely...

[Rum]

This could be the wrecker - I hope so. The UK gummint isn't going to make getting over this issue easy.

[Svartalf]

LOl, I'd like to see what the Schottische Pund would be like if not tied to the Sterling... probably close to what the Greek drachma was before it got anchored into the Euro

[PsychoSerenity]

This could be the wrecker - I hope so. The UK gummint isn't going to make getting over this issue easy.

I can't blame them in the slightest for wanting to leave, except that they'd be leaving the rest of us right in it. Without them the Tories would have free reign to continue pushing forwards into complete corporate fascism. We might be heading that way anyway because most of Labour don't seem to want to fight for the people anymore. I'm almost inclined to say "run, save yourselves, I'll try and meet you on the other side of the border".

[Audley Strange]

Well if England stopped consistently voting for the Tories, you wouldn't have that problem. We don't, so don't blame us.

[Xamonas Chegwé]

This could be the wrecker

And the (at least) 2 to 1 majority for staying in the UK in every poll taken since the referendum was first mooted isn't?

[Audley Strange]

This could be the wrecker

And the (at least) 2 to 1 majority for staying in the UK in every poll taken since the referendum was first mooted isn't?

A good point. However if the history of voting has told us anything it is that those who wish to change the status quo are often more active in the voting booths than those who are complacent enough to believe that no one would vote for such changes. Especially when those who do not want change are so confident that it won't happen, they are less likely to vote.

I'm still swithering to tell you the truth. I've weighed up the pros and cons and to me its still a tough choice It is made slightly easier by the laughable and desperate rhetoric from the pro-union side. Especially when your Prime Minister comes on and tries to woo us, if you really want the union to stay together, get him the fuck away from the debate. He's more likely to push undecided people towards independence.

AND considering the number of fucking shops in England where I've had Scottish money refused, even as recently as last October when I was in Manchester, fiscal union is not something I'm particularly concerned about.

[PsychoSerenity]

Especially when your Prime Minister comes on and tries to woo us, if you really want the union to stay together, get him the fuck away from the debate. He's more likely to push undecided people towards independence.

Yes he is, isn't he.

[Audley Strange]

They've still not painted those fucking fences.