Gibraltar currency?

[Tom47]

I won't step into any argument about using Gib pounds. ;)

 

Instead, I'll start my own argument about Scotland. :D

 

If Crown-Prince Alex gets his way & Scotland goes independent, he thinks he'll take the oil (that's "Scottish":rolleyes:) with him, but keep the GB pound (that's a "shared asset":rolleyes:)

 

Anything else you want to cherry-pick, Alex??

 

JB :)

Hi

Is he an actual prince? Someday I hope to visit Scotland. There is precedent for different countries using the same currency--euro. As I understand it you don't have to join,i.e., UK and Denmark.

Tom:)

[John Bull]

Hi

Is he an actual prince? Someday I hope to visit Scotland. There is precedent for different countries using the same currency--euro. As I understand it you don't have to join,i.e., UK and Denmark.

Tom:)

 

Hi Tom.

 

Errr no he's not a prince. :D

Mebbe he think he is. ;)

Ask Wiki or Google about scots politician, Alex Salmond. who is the power behind aspirations for an independent Scotland.

 

Yes, Scotland is a beautiful place to visit, and despite being a part of the UK has a very different character to the other home countries - though keeping your fingers crossed about the weather is even more important than for England.

 

Correct - it's possible to be a member of the European Union without joining the shared currency. Examples include UK, Sweden, Denmark.

A shared currency usually means a shared set of rules about economic stability.

That's one reason most of us Brits don't want to be in a Euro country - having Europe dictate our monetary policy - interest rates, govt borrowing & spending etc.

 

Turns out we were kinda right - but for the wrong reason.

No need to worry about Europe dictating our monetary policy, we could've carried on in our own sweet way, over-spending beyond our means. And lied about our finances, as the Greek govt did. Or with the tacit approval of the Euro-regulators, who didn't want the problem to surface, as the Italian, Spanish, Portuguese & Irish govts. did.

When, due to the recession, Greece was unable to pay its debts without a bailout from other European countries, it all came to the surface & caused the Euro, and the economies of all Euro countries, to suffer. And forced Greece & the other weaker Euro countries to take very unpopular austerity measures, hence the demos & strikes which plagued cruises to Athens for a while.

Greece was just the tip of a seriously un-balanced currency.

 

And that's why the UK govt won't allow an independent Scotland to retain the pound - they don't want the risk of a weak foreign govt dragging down the value of sterling. Or even a strong Scottish economy keeping the GB pound artificially high.

So an independent Scotland would have to have its own currency, as did the Irish Republic of Eire (the southern part of the island of Ireland) when it was declared an independent republic in 1922. The Irish Republic created its own currency, the Irish punt, which was floated at an exchange rate of 1:1 with the British pound & then rose & fell separately from the British pound like any foreign currency.

(the Rep of Ireland abandoned the punt & joined the Euro in Jan 1999)

 

An independent Scotland would have to create an independent Scottish currency, though they could "shadow" the pound, as Britain did with the German Deutschmark until 1992, when on "black Wednesday" it was forced to float independently & de-valued by 20% overnite.

 

Or they could apply to join the Euro - probably the simpler & safer option

 

Of course its all a lot more complex, but that's the bones of it.

 

Sorry, all a bit political (& I know the mods don't like politics ;) ), but just by way of explanation.

 

JB :)

Edited December 14, 2013 by John Bull

[Tom47]

Hi Tom.

 

Errr no he's not a prince. :D

Mebbe he think he is. ;)

Ask Wiki or Google about scots politician, Alex Salmond. who is the power behind aspirations for an independent Scotland.

 

Yes, Scotland is a beautiful place to visit, and despite being a part of the UK has a very different character to the other home countries - though keeping your fingers crossed about the weather is even more important than for England.

 

Correct - it's possible to be a member of the European Union without joining the shared currency. Examples include UK, Sweden, Denmark.

A shared currency usually means a shared set of rules about economic stability.

That's one reason most of us Brits don't want to be in a Euro country - having Europe dictate our monetary policy - interest rates, govt borrowing & spending etc.

 

Turns out we were kinda right - but for the wrong reason.

No need to worry about Europe dictating our monetary policy, we could've carried on in our own sweet way, over-spending beyond our means. And lied about our finances, as the Greek govt did. Or with the tacit approval of the Euro-regulators, who didn't want the problem to surface, as the Italian, Spanish, Portuguese & Irish govts. did.

When, due to the recession, Greece was unable to pay its debts without a bailout from other European countries, it all came to the surface & caused the Euro, and the economies of all Euro countries, to suffer. And forced Greece & the other weaker Euro countries to take very unpopular austerity measures, hence the demos & strikes which plagued cruises to Athens for a while.

Greece was just the tip of a seriously un-balanced currency.

 

And that's why the UK govt won't allow an independent Scotland to retain the pound - they don't want the risk of a weak foreign govt dragging down the value of sterling. Or even a strong Scottish economy keeping the GB pound artificially high.

So an independent Scotland would have to have its own currency, as did the Irish Republic of Eire (the southern part of the island of Ireland) when it was declared an independent republic in 1922. The Irish Republic created its own currency, the Irish punt, which was floated at an exchange rate of 1:1 with the British pound & then rose & fell separately from the British pound like any foreign currency.

(the Rep of Ireland abandoned the punt & joined the Euro in Jan 1999)

 

An independent Scotland would have to create an independent Scottish currency, though they could "shadow" the pound, as Britain did with the German Deutschmark until 1992, when on "black Wednesday" it was forced to float independently & de-valued by 20% overnite.

 

Or they could apply to join the Euro - probably the simpler & safer option

 

Of course its all a lot more complex, but that's the bones of it.

 

Sorry, all a bit political (& I know the mods don't like politics ;) ), but just by way of explanation.

 

JB :)

Hi

Well thanks for the info. I read a Financial Times article that suggests that independent Scotland will have reapply to join EU. Also, it could in for hard times when the oil runs out. What are mods?

I visited Estonia in 2012 and I used Euro coins/notes left over from Spain/Italy/ Greece in 2011. Very convenient. No one ever refused me.

Merry Xmas and Happy New Year

Tom:)

[John Bull]

Hi

Well thanks for the info. I read a Financial Times article that suggests that independent Scotland will have reapply to join EU. Also, it could in for hard times when the oil runs out. What are mods?

I visited Estonia in 2012 and I used Euro coins/notes left over from Spain/Italy/ Greece in 2011. Very convenient. No one ever refused me.

Merry Xmas and Happy New Year

Tom:)

 

Yes, Tom, I guess they will have to apply to join the EU, though I'd have thought that a foregone conclusion. Joining the Euro is a little more tricky, there may be terms unacceptable to a Scottish govt and/or the Scottish people.

The potential loss of the pound may be a deciding matter in the referendum on independence.

 

Certainly the common currency is great for the tourist, I always have a stash of Euros at home & can spend them anywhere in Euroland. And it's a great currency for adjoining countries such as Denmark, Croatia, Turkey, even Israel, though not as widely acceptable as, say, the USD in the Caribbean.

 

All the best to you too for the festive season

 

JB :)