"The best case scenario would be devo-max or the federalization of the UK, but Westminster would not allow either to be on the referendum ballot. The prospect of full scale constitutional reform is not even under consideration outside of a few Lib Dem committee meetings. Scots have been put in a position where the status quo is unacceptable to them, and in which viable alternatives - devo-max and federalization - have been expressly refused as options. It is often said that, if devo-max were on the ballot, it would win. It isn't on the ballot, because Westminster knew that and hoped that by denying a third choice, Scots would choose the status quo. Is that manipulation the kind of government you would want to live under?"
-- James Fallows, The Atlantic
"But Canada has its own currency, which means that its government can’t run out of money, that it can bail out its own banks if necessary, and more. An independent Scotland wouldn’t. And that makes a huge difference.
Could Scotland have its own currency? Maybe, although Scotland’s economy is even more tightly integrated with that of the rest of Britain than Canada’s is with the United States, so that trying to maintain a separate currency would be hard. It’s a moot point, however: The Scottish independence movement has been very clear that it intends to keep the pound as the national currency. And the combination of political independence with a shared currency is a recipe for disaster.
I find it mind-boggling that Scotland would consider going down this path after all that has happened in the last few years. If Scottish voters really believe that it’s safe to become a country without a currency, they have been badly misled."
-- Paul Krugman, NYT
I am with Paul Krugman. Scottish Independence Leaders must spell out what transition they want to propose from British Pound to their own currency. Whether Independent Scotland can take its fair share of British Debt is secondary - what is primary is Independent Scotland is going to have its own currency very soon or not. Otherwise I am all with Krugman's analogy between Spain and Florida.
For all the talk of enlightened talk of this debate, as a friend of James Fallows indicate in his post; it is amazing how Scottish Independence folks have not been grilled about this Spain versus Florida dichotomy.
Above all, what amazes me most is the mendacity of London and Westminster in not being more accommodating and more federal. There were few last minute announcements, but one gets the feeling of too little too late. In absence of wholesale reforms of UK, Britain as is in a trouble. British Empire was never accommodating to its subjects all over the world. The British Queen and her forefathers lost not just America, but crown jewel India; failed to keep Canada and Australia. But still the House of Windsor and Ten Downing Street do not get the message - how to be federal to keep the United Kingdom intact.
If in coming days Scots indeed vote to be independent, sure they will face misery; but the bigger failure will be of London due to its arrogance. UK will be lot more diminished power on the global stage, kind of mere City State of London (like Singapore or say Dubai). It should loose its UNSC seat in that scenario and more humiliation will be in order.