In the film There Will Be Blood, Daniel Plainview, a monomaniacal oilman played by Daniel Day-Lewis, tries to lowball the Sunday family, whose hydrocarbon-rich land he covets, by claiming that he wants their acreage for quail-hunting. But Eli Sunday knows Plainview’s real intentions. He asks for $5,000, ostensibly to invest in his evangelical church. Many years later, Eli, who never received the money from Plainview, tracks the multi-millionaire oilman down in his Xanadu. Eli complains of past grievances and brings a quixotic plan for future exploration of the Sunday land.
I won’t spoil the ending but there is something – an admittedly tenuous something – of the Eli Sunday in the Scottish National party’s arguments about North Sea oil and gas. Alex Salmond’s party is right to be critical of how opportunities were wasted but it is too sanguine about what oil and gas would offer an independent Scotland. Read more
An independent Scotland would be refused entry to a monetary union with the rest of the UK, according to reports on Wednesday. George Osborne, Ed Balls and Danny Alexander – a Cerberus of currency doom – are later this week expected to individually reject the Scottish National party’s proposal for a formal sterling union. I do not know whether this means a monetary union would be ruled out under any circumstances – but words being used by those involved in the interventions include “definitive” and “emphatic”. So far, the chancellor has said that a monetary union would be “very difficult”. Read more
On Wednesday, Mark Carney made a speech about the issues an independent Scotland would have to consider if it were to seek a currency union with the rest of the UK.
Although the Bank of England governor insisted that his remarks were of the technocratic variety, their political implication was obvious: a currency union would require the ceding of sovereignty by the newly independent country. There would need to be a banking union, “shared fiscal arrangements” and an agreement over how the BoE would provide facilities to Scottish banks as lender of last resort. The history of the eurozone gave Mr Carney’s speech its context; it was one of the best that Jean-Claude Trichet never gave. Read more