Collapse of the pound is not due to uncertainty, rather it’s predicated upon the certainty that on Scotland’s exit, iEngland will be skint
by Christian Wright
The run on Sterling is a testament to the robust nature and rude health of an iScotland economy. As pandamonium ensued, in a roused twittersphere we ourselves asked:
Were Scotland a great financial burden about to be lifted from England’s shoulders do you think Sterling would be in a nosedive? “Of course not” was the overwhelming response of #indyref’s informed twitterati.
The pummeling the pound is taking is not due to uncertainty, rather it is the discounting of the currency in the sure and certain knowledge that upon Scotland’s departure, iEngland/rUK will be a poorer state, with not only a greatly reduced GDP, but a greatly diminished per capita GDP.
The financial markets see a future where sterling is not propped-up by Scotland’s petro-dollar assets, and where an iEngland is no longer bankrolled by annual contributions from Scottish combined annual revenues which for at least the past 32 years have exceeded expenditures in Scotland.
This collapse of the pound is dispositive evidence that the markets view Scotland as a substantial net asset to the UK, completely debunking the 20 years narrative of Scotland as an economic basket case, and Scots as indolent, feckless subsidy junkies.
Again, as we tweeted all day during the panic selling, to stem this financial collapse, Chancellor Osborne needs to concede that if YES prevails there will indeed be a currency union. He needs to do this, and he needs to do it now.