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Re: Will Scotland Leave the UK?
Quote:
Originally Posted by Mr Angry
As with every debate there are many takes.
"Scotland would not need permission to continue using the pound despite the Chancellor's view on the issue, and could continue with the currency in the same way countries like Panama and Ecuador use the US dollar, Sam Bowman from the Adam Smith Institute said today."
This will prove interesting whatever the outcome .
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Some people in Panama may disagree with you....
http://www.sovereignman.com/expat/a-...ncy-wars-6161/
Quote:
Decades ago when the dollar was actually a respected store of value, Panama’s dollarization really meant something. Today is a different story. Yet while Panama is still unable to print its own currency, Ben Bernanke obviously has no such restrictions.
The trillions of dollars that Bernanke has created over the last few years have made their way into the financial system and reduced the purchasing power of US dollars. Right now this is being felt acutely with respect to fuel prices denominated in USD.
The consequent rising prices hit dollarized countries like Panama very hard because there is no central bank here to monetize the debt and finance populist deficit spending.
Case in point– Ricardo Quijano, Panama’s Minister of Industry and Trade, confirmed this morning that the government’s fuel compensation fund has completely run out of money. In the face of rising fuel prices, the government is now no longer able to subsidize gasoline.
As Quijano said, “We are almost in a national emergency. Oil prices are not going down.”
It seems clear now that the Panamanian government recognizes the challenges of being dollarized and is exploring a number of options to circumvent its limitations.
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btw, it will be amusing if the SNP use a libertarian think tank to back up their arguments... 
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