Monetary Union

[jomifl]

From 'The Scotsman'

IN the event of Scottish independence, people in England, Wales and Northern Ireland should not be given a formal say on whether Scotland enters a currency union with them, according to First Minister Alex Salmond.

So that's it....

[Zacs-Master]

Showing a hint of his true colours.

[Old_Geezer]

I think it fairly obvious that an official union would need the agreement of all. Buying a lot of someone else's currency and using it as the main one in your own country may be rather less in need of agreement.

[jno]

he's saying no referendum would be needed? That sounds sensible; can you imagine people turning out in their millions to say who should be allowed to use their money?

[ludwig]

What I don't understand is why Alex Salmond's goal of independence from the UK is taken seriously, but Nigel Farage's goal of independence from the EU is seen as a bit of a joke.

The former is regarded as a serious politician, and the latter as a buffoon. I personally can't see much difference between them.

[Colmc54]

Of course.

However the UK has never been, and will probably never be a democracy.
in the negotiations that would follow the increasingly unlikely Yes vote the 'negotiations that follow will be conducted by the politicians and their patrons. The people of these isles, as always, will almost certainly have no say.

[Buenchico]

I'm no supporter of Alex Salmond but I agree with Jno's point here. No referendum was required for the UK to enter into monetary union with other countries in 1990 (under the European Exchange Rate mechanism), nor for the UK to withdraw from the ERM in 1992. Similarly no referendum was required, either in the UK or Ireland, for the fixing of the Irish Punt to the Pound Sterling or for the split between the two currencies.

While 'letting the people decide' sounds good in principle, it can result in fiscal chaos. For example, anyone with a basic grasp of mathematics (irrespective of their political views) has been able to see for decades that the state of California has been spending more than it's been receiving in taxes, so either spending needs to be cut or taxes need to be raised. But California has a political system that requires all such decisions to be decided by a referendum. Time and time again people have voted against cutting spending. Time and time again they've voted against increasing taxes. Result? A bankrupt state! Sometimes the people have to allow their politicians (whom they've elected to govern) to make unpopular decisions for them. So a referendum should only be used under really exceptional circumstances.


>>>However the UK has never been, and will probably never be a democracy

Thank heavens! Democracy only works if those who are given the vote actually understand what they're voting for. How many UK voters have even read the manifestos of the parties who are seeking their votes, yet alone the Treaty of Rome or the Schengen Agreement? How many of them have even a basic grasp of Keynesian or supply side economics?

[Gromit]

The Bank of England (BOE) should make that decission. The BOE does lots of things on our behalf. It should not be David Cameron or Ed Miliband's decission. The Bank of England shouls act independent of any Government and have the long term interests of Sterling as its aim.

If Sterling will be stronger with the Scots as members then they should be allowed to join. If Sterling will be better off without the Scots, then they should be denied membership. But it should be an economic decission, not one made to suit any English political party.

[emmie]

no it isn't, he is talking out of his derrière as per usual

[emmie]

the head of the BofE has already outlined this to Mr Salmond, perhaps he is going a little mutt and jeff

[Old_Geezer]

I didn't read the OP as referring to a referendum, but that their representatives in parliament should debate whether to allow it.

[Old_Geezer]

If a State goes bust the citizens learn a lesson and improve their decisions in the future. One doesn't learn by being kept away from what one needs to know by a "we know better than you, don't worry your head about it" environment. One needs no deep grasp of everything for democracy to work. Merely the willingness to listen to or read the arguments put forward by those with expertise in a particular area, and decide who made the best case.

[emmie]

the majority don't read manifestos, nor do they know much about the parliamentary system, sometimes it can be the bloke who has the nicest smile, way, some may well have a grasp of politics, but democracy doesn't always work when choosing candidates for government. Listen to the criticism of our current crop, are they based on sound logic, or that Cameron looks like a toff, or Miliband has a large proboscis, whiny voice, sadly we all do it, some to a lesser extent, but it's there all the same

[Gromit]

Cameron sweet talked grassroot Conservatives who voted him leader over far more experienced and better candidates. He was attractive and he smiled at them, and he got their vote. He had been an MO for only 4 years.

[Gromit]

He had been an MP for only 4 years.

[Peter Pedant]

Mark Carney Gov of the Bank of England can vote on my behalf hur hur hur
that would be quite sufficient

so really I agree with Salmond - I dont need a vote....

[Peter Pedant]

.

I think over this the Scots population will realise that Salmond is talking out of the back of his kilt. Salmond thinks that if he offers a currency union we will all say yes please

but it means that we underwrite Scots banks ( oops ! ) that he will then say are independent ( until they need English Gold )

and no one wishes to underwrite a loss they cant minimise.

Using the Poond under the B of E means that the finance sector in Edinburgh moves to London where as English businesses they get underwritten by the yes B of E

I think the scots population will realise that if Scotland gets independence, they will all have to get on the bus to England in order to get jobs (but not Alex Salmond of course )

[jomifl]

A vote in parliament would be a formal say since MPs do the bidding of their electorate....if only.

[heathfield]

Despite comments from the Treasury and Westminster, saying Scotland can't have the pound, it is solely up to the Bank of England to decide whether or not Scotland enters a currency union. Reports in the media that Carney as head of the Bank of England ruled out currency union are false - he didn't. He said that in the event of a currency union, negotiations on all the fiscal implications of debt, taxation, etc, etc, would be difficult and protracted. Of course they would. These things couldn't be settled overnight, but would take years to accomplish.

[emmie]

he said that Scotland could lose some of it's sovereignty, if they were to insist on keep the Pound, i was wondering if that is Alex Salmonds aim, then again he did say that he wants to keep the Queen, nice

[Peter Pedant]

.

I think people realise that so long as Alex Salmond can increase his own power he will say absolutely anything to achieve it.