Posted on 23 Sep 2014 by

The great debate is over. Scotland remains part of the Union. Whatever ones politics maybe the financial markets are the best guide as to what every argument comes down to – ‘its the economy stupid’.

The poll shortly before referendum day that put the YES vote ahead not only galvanised Westminster politicians to sprint North but also saw the £ weaken and share prices in companies with Scottish connections fall. Post referendum one could argue that all three reversed!

The effect on the remaining countries in the UK has not really been discussed. Would YES lead to a downgrade of the UK’s credit rating leaving interest rates rising and borrowing (therefore liquidity) becoming more difficult? The impact on business is obvious. As for Scotland without a £ (despite Alex Salmond’s protestations) the effects could have been disastrous and would have impacted on the North of England without doubt.

We await and see what the politicians do in the future but in an increasing shrinking world standing strong and united as Britain has a strong argument.

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