cartoon Ralph Steadman
Top Westminster politicians, top banking executives and the mainstream media have all told us that a currency union between an independent Scotland and the Rest of the United Kingdom is impossible (the list is so long and the posts so easy to find that I’m not bothering with one reference here). It seems they have not read a calm, well-argued paper from Deutsche Bank experts Oliver Harvey and George Saravelos (http://www.voxeu.org/article/well-designed-sterling-union-will-be-needed-if-scotland-votes-independence) that was published in May 2014. The conclusion is:
A practical analysis of an independent Scotland’s currency options shows that a unilateral breakup, by either side, would be close to impossible because of the costs to financial stability. Even a mutual exit would be extremely complicated and risky, and would require policymakers to be planning already. A currency area would thus be the only viable option in the short term. However, as the Eurozone demonstrates, if badly designed this can be an exceptionally costly outcome.
There you have it. A currency area while calm heads work out the best options for both sides in the long term. For example it has been suggested that Scotland might use the Norwegian crown, which could be a good option if Scotland develops into a country rich in renewable as well as fossil energy (https://theconversation.com/the-best-currency-for-an-independent-scotland-would-be-norways-krone-25036 and this blog).
So the top brass have been talking against the best interests of the rUK, which they must have know, but that was less important than shoring up the neo-liberal alliance of Westminster to keep jobs for the boys (neo-liberal in the sense of Hayek and Friedman). Senior staff of the Deutsche Bank seem to have missed this too (http://www.craigmurray.org.uk/archives/2014/09/neo-cons-of-the-world-unite-you-have-nothing-to-lose-except-your-slaves-mansions-and-huge-pots-of-money).
Recent comments and even some mainstream media articles have swung in the last week from details to principles. This campaign is not only about an independent Scotland but also about the principle of “One man (or woman), one Vote” against the rampant misuse of wealth and power by a system that delivers benefits to themselves instead of to the populace .
George Orwell would have applauded (http://www.theguardian.com/society/2014/aug/26/the-establishment-uncovered-how-power-works-in-britain-elites-stranglehold).