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Scotland Prepares For Bank Runs; 'Quietly' Sends Millions Of Banknotes North
As the Scotish independence vote draws near and remains too close to call, some analysts are suggesting Plan B for Scotland may be to choose to opportunistically default. This has done nothing to calm concerns of the aftermath of a "yes" vote - despite US asset managers proclaiming it irrelevant. Nowhere is that more clear than, as The Independent reports, Britain’s banks have been quietly moving millions of banknotes north of the border to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote in Thursday's independence referendum, it has emerged. Bankers stressed there has been no sign yet of any increase in the amount of withdrawals from deposit accounts or ATMs, but the moves have been taking place over the past week or so in order to make sure ATMs do not run out on Friday in the event of a panic reaction to a “yes” vote.
Britain’s banks have been quietly moving millions of banknotes north of the border to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote in Thursday's independence referendum, it has emerged.
Sources told The Independent the moves have been taking place over the past week or so in order to make sure ATMs do not run out on Friday in the event of a panic reaction to a “yes” vote. There have been some suggestions that people will want to move their money to English banks in the event of an independence vote.
Bankers stressed there has been no sign yet of any increase in the amount of withdrawals from deposit accounts or ATMs, stressing that there was no need because the Bank of England has pledged to stand behind all accounts for at least 18 months in the event of a “yes” vote.
However, concerns about how safe is their cash still linger.
...
Sources at major banks said they had been issuing clear instructions to their Scottish branches to reassure customers there was no reason to panic.
One said: “We have seen a big rise in customers coming in and asking us what would happen, but there is no sign of any significant flow of deposits from north to south.”
...
Figures from the Bank of England show the number of notes in circulation has been creeping up steadily over the last year. This month there are 62.3 billion notes in the country, compared with 59.8 billion a year ago.
A source at one bank said: “This forms part of our contingency planning. We are, of course, monitoring the situation very closely from hour to hour.”
* * *
As Bloomberg reports, Salmond May Favor Opportunistic Default
Adopting sterling informally while reneging on debt might be Scottish govt’s plan B, Angus Armstrong, director of macroeconomics at Niesr, says in statement, citing comments from Scottish First Minister Salmond.
If Scotland refused to accept fair share of existing U.K. debt, it might be interpreted as a default, even if technically it wouldn’t be failure to pay
If Scotland were to not pay its share of debt, junk status is probable; it’s unlikely to be excluded from markets for the avg time of ~10 years, but there’s “no free lunch” from opportunistic default
Biggest hurdle for any Scottish bid for EU entry would be obtaining Germany’s “yes”
If Scotland sets precedent for EU membership after secession, despite debt repudiation, Germany would be exposed to other post-secession insolvencies
If Scottish govt chose to combine “sterlingisation” with reneging on fair share of existing U.K. debt, it would boost fragility of exchange-rate arrangement; Niesr economists expect currency arrangement would fail and Scotland forced to introduce its own new currency within 1 year.
* * *
Yet, American investors should not worry for some talking-head yesterday on CNBC proclaimed Scotland irrelevant (maybe he should tell the $30 billion in outflows that)...
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I guess the BOE shouldn't have dropped the reserve requirement to zer0-point-fuck-all.
Remember, friends, he that panics first panics best.
""Britain’s banks have been quietly moving millions of banknotes north of the border to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote in Thursday's independence referendum
What nonsense, the panic should come if they stay in the UK. After all, who had reason to panic on Titanic, the passengers that remained on the ship, or the ones in the rafts?
But not to worry, the scots will say yes to independence.
Run on ATMs? I'd be preparing for a run on the pubs! Beer laddies!
What's going on in Scotland? Hard to follow the news while camping out here in front of an Apple store for several days now. I'll be up to date soon though, as soon as I get my hands on the new iPhone6!
LOL!
"As the Scotish independence vote draws near .."
nigh
as the scotties independence draws nigh
draughts nigh
ere the scots independence draughts well nigh
http://en.wiktionary.org/wiki/Appendix:Glossary_of_Scottish_slang_and_ja...
This is the essence of loss of confidence that causes hyperinflation . This is what causes velocity to jump as bonds start to trade down.
I'm enjoying this episode quit a bit, and must declare I like the idea of people thirsting for independence and more control of their individual lives, so I'm in the Yes for Scotland camp!
However it's also amusing to watch from a cultural level, because those ol stif lipped English monarchs have always taken some pride in "claiming" Scotland" as there own! Almost in the same way America claims Hollywood or its pro athletes "as there own"!!! And I don't mean politically, I mean culturally on an ego level, like all Americans look like Brad Pitt and Scarlett Johansen or Marlon Brando and Elizabeth Taylor, right?:)
Scotland wanting out I'd liken to if on a personel level, you had a famous rich family member who everyone liked and they had your last name, then one day they announced they were changing their name and moving away!
That's what the British feel like right now!
Hey Scotland - the 1980's just called - they want their bank management back (along with "hourly" reporting)...
During the reign of Bubba (back before executive dashboards became ubiquitous), I had cash transactions and volumes piped to a TV monitor in my office... in real time. I also got to watch happy hour hit in three separate time zones in the US every evening by watching debit/card usage spike.
7pm CET, I think I'll be stepping out for a drink momentarily...
No shit. It isn't hard to bail once you see that your commitmment means continued servitude.
Hope the Scots are the first to wake up. Good people.
This vote disrupts the well oiled "all is well" propaganda machine that has been running "full tilt lie" since fall 2008.
Is it enough to tip the fragile lie construct (monetary system)????
On Thursday I'm guessing the vote will be "Chariots of Fraud".
The YES vote is actually yes to Ebola! Scared yet, you skirt wearing, ungrateful bastards?
how does that even make any sense?
Trolls went full retard. If the Scotts do not vote YES, they are coward fools.
The US zombies can't even vote to label the poisons inserted into our foods. The people vote the way they are told to vote.
Addiction to reactionary mentality.
Oh no! The roof is on fire !
Sorry. I don't identify sarcasm. I thought the comment was ridiculous enough to identify that I am making a statement about the continued veiled threats by the bankers and UK gubmint. I would love to see a yes vote and an actual, non-banker captured sovereign government. I just don't have much hope.
The bankers are prepared for either outcome. You can be sure of this.
Damn straight. Most people live to enjoy life, have some fun and raise a family. Banker scum live to fuck people over and cause pain. They will always be steps ahead.
Would you want any of your money in a bank that wasn't prepared for either outcome?
Exactly. People forget Bush sent Anthrax letters to the "Nay Crowd".
I would love to see a...non-banker captured sovereign government...
As soon as any soveriegn government begins issuing and using intrinsically valuable coinage / currency for setlling trade, that currency inevitably begins a massive exodus from within the confines of the geography of that nation. Paradoxically, it seems to flow most quickly to those places with the least presence of structured law as it itself becomes the standard for civil conduct.
The US experiment began with foreign specie and has matured through the cycle to where our current currency is now threatening to return to our shores in a tidal wave of unused sovereign oil trades. Those massive transactions will now be denominated in whatever the next less dirty shirt both parties can agree on. I wish it weren't so but intrinsically valuable currencies remain a pipe dream. Fiat is the only way to move such large expendatures quickly, that is until this tsunami of petro dollars has the inevitable consequence of revealing pms proper ratio of value.
I used to think the fed or treasury would / could just sop up these devices as they return, but they're not equipped to retire debt, they're only in the business to create more of it.
jmo.
Everything I've been reading the last 2 weeks to discredit Scotland's attempt to leave the UK I had the distinct impression there were like 15 people total in Scotland. Now there's going to be bank runs by millions, apparently.
NOW it matters. Not then, but now.
I'd be at that ATM machine already.
"Everything I've been reading the last 2 weeks to discredit Scotland's attempt to leave the UK"
Reading in media owned by whom? First question to ask.
Are those BRITISH notes ?
IIRC, Scottish Pound Notes are still in circulation ....
... even if they are designated as 'equal" to the GBP, who knows what's next ?
Exactly, the Scots already have their own different pound notes, although British ones are
used concurrently.Try using a Scotish note in the south of England,if you can.
Usually have to go to a bank to change it.
So which notes are they sending North ?
The PM holders don’t care what currency they use in Scotland b/c the silly yellow metal withstands all this tumult as it has for centuries.
Max-out the credit cards for silver bullion delivery, bury it under your favorite sheep, *THEN* hit the pub.
nonsense. the biggest hurdle for an accession of Scotland to the EU would not be Germany. it would be Spain, followed by Italy and the UK. France would also have a reason to say no, but France always loved Scotland, and viceversa
meanwhile, all this "strategic default" talk is pure nonsense. default, and rUK would have a good reason to grab all the oil
in the unlikely event that Scotland opts for a divorce, it's likely that it will be one of the most amicable ones ever
Amicable like Nothern Ireland, or even more so?
way more amicable. btw, the relation between Britons and Irish was quite amicable, too, as well as the official relations between Ireland and the UK after the split
example: 1917 Westminster made an Act that for all purposes gives nearly full citizenship to all Irish entering/living in the UK
since this is ZH: you know what made the IRA that damn strong and allowed so many to fight and die for that cause? Vast amounts of money collected in the US "because I have no idea what is going on there but in doubt I'm of Irish descent and I feel I have to help my fellow Irishmen in whatever they are fighting for"
when the money stopped flowing, the madness abated
The Irish history with GB is a little more complicated than that.
Makes your head spin when you really investigate it.
The Scots Lowlanders that populated Northern Ireland were the descendants of Irish invaders
settlers. So the foreigners in Northern Ireland are prolly more Irish than the Irish.
Makes the MENA positively easy in comparison.
"prolly" - wtf is that supposed to be?
"Probably".
It's as bad as 'yall'.
$1,000 fine for a first offence. Public floggings after that. Standards would soon be raised.
of course it is. as soon as you generalize about millions of pesky humans all gifted with free will (aka history) it's always "more complicated than that"
nevertheless, I think my statement is not that far from the mark, if you allow some leeway because of it's shortness. or do you disagree?
Ghordius, one of the things that has impressed me the most with you over the years is your willingness to confront the extreme over-simplification endemic to the Zero Hedge peanut gallery. I never think of you as dismissive, but that's how it read to me. Your statement might not be far from the mark, but only in the most superficial way.
I'll take that as a (mostly) compliment from someone I learned to respect
Perhaps something that would explain it to you: in my usual environment, for a gaggle of very special reasons, I have to be extremely guarded about what I say, and yet I'm very seldom confronted with criticism, at least directly, in my face
so ZH is a relief. yet I am a bore and and an extremely arrogant person. And I believe that every person that joins a club to which I belong has a right to be treated "in the way of the club"
I try to be civil and to throw facts at people, with a few opinions sprinkled on top. A classic case of people making gifts they themselves would like to get
I firmly believe that we are all born ignorant, and that this infernal delibitating illness has a slow cure
I'm sorry to hear that my "natural arrogance" translates in dismissivenes towards the "peanut gallery". This is not intended, and perhaps I can hide behind my weak English, which often causes misunderstandings, here
back to the point: it was that last century's divorce between Ireland and the UK was amicable, with exceptions. compared to what could have been. I note you haven't filled in yet any details to this albeit superficial statement. Is it perhaps because it's a really, really, really long and complicated story? ;-)
I was absolutely making a compliment, and *I* was the one being dismissive by using the term "peanut gallery," I was not projecting that on you.
I read ZH every day, but rarely have much to say anymore. I generally quickly scan through comments, but if I see you've written something, I slow down. I was surprised today, that's all. You can probably gather that I have some interest in Ireland, too, and I suspect you are well acquainted as well. I haven't had a discussion on Irish politics or history in nearly 30 years, and I would think for most people, Irish history must be really boring. My real interest is in Anglo-Irish literature, and I don't have a strong personal connection to Irish politics at all. For a tiny, tiny country, there have been countless volumes written. I imagine there are internet forums devoted solely to Irish topics, but I haven't looked.
Oh, and I certainly wouldn't call your written English "weak." I've often wondered what your native language is.
I have to admit that most of my knowledge about Ireland - besides the superb literature - is a by-product of my English/Scottish interests. but boring? not at all. it's full of very delicious details, for me in particular because the Irish had always an eye on the continental reaction to some of the English's foibles, and of course the whole Catholic politics nexus
take the title of the Irish PM, for example: Taoiseach. Old word for "chieftain", yet also related to a search for something different from a "minister", and in many ways more archaic. and the Irish constitution is one of the masterpieces, imho
I made once the exact same question, when I was a child. I asked: "when are you going to speak my language? I always have to speak yours or yours or yours...". You see, I thought everybody would have a personal and unique one, with the exception of whole villages sharing a dialect for lack of time or resources, or to highlight their commonality for local political reasons
Ghordius.
Good tidbit. I alway thought that the Plastic Paddy's had no reason to be upset. Well, nothing compared to what an American Jew would feel with respect to Israel. Seems weak in comparison.
The Irish Sweepstakes financed that war.
The “Yugo” got the Yugoslavia wars underway.
Similar to Boy Scouts going door to door collecting bottles, factions just give ISIS their spare weapons.
You need to keep reading Irish history. Your account is a massive simplification and thus greatly distorts the facts. Money collected in the US was no doubt of some benefit to the IRA, but they collected much more from bank robberies, protection rackets and shaking down drug dealers and major criminal figures. Look up Martin Cahill "The General", late of this parish and the subject of several movies, who succumbed to the tender mercies of "The RA" bcos he didn't like to share.
The reason the fighting stopped was because the more intelligent elements of the IRA/Sinn Fein could see it was going nowhere and John Hume helped them to come in from the cold. The Irish Peace Process was the result, climaxing in the Good Friday Agreement. The rest, as they say, is history. That process had, like success, many fathers. But reducing income from the US was not the reason, whether there was such a reduction or not.
van rompuy is that you, well at least ghordius when you are posting here it means you're not interfering with kids like the rest of your pro eu chums in brussels, plus you're way of the mark Gaddiefi gave way more arms to the 'ra than the yanks and where's your evidence for the last line, typical eussr fanatic always lying
I agree, the NO vote will win by a thin margin.
I am guessing no at about 60 percent.
Actual results may differ.
Yip - my prediction, which is worth fuck-all, is that the silent majority comes out and it's a No vote 60/40......
You heard it here first.........
More like England's official vote "counters" come out.
"It was really, really, really, close, but no, you can't leave, now stfu and get back to work"
France loves the Scots...they would absolutely want them in the EU for all sorts of economic and strategic reasons.
Now that's enough reason to remain in the Union
actually... no. it has more to do with the Auld_Alliance that still binds Scots and French hearts. Until 1903, for example, Scottish immigrants were granted French citizenship at sight. Various Scots and French groups claim that the Old Alliance between Scotland and France is still a valid treaty
I am not sure it has to do with something hundreds of years old. But still, you are right : because of lands, of peoples, of culture and everything else, french love scots. For me, it has to do with whisky (Oban and Islay is better), rugby (scots is the last nation still playing a national game, not the international variant in which every team has the same strategy, with some being better at it than others), writers (e.g. Iain Banks). But anyway, I guess that one nation liking another nation is something always irrationnal...
Ardbeg Uigeadail ... my go to scotch.
looks good, but never tried...
love can't be rational. when it's rational, it's called... interest
Ah well, maybe they can join the BRICS, imagine that.......
Which ever side wins they need to evict NATO, close NWO central banks and use sound money, get out of the EU, IMF, etc., and refuse to participate in wars that have nothing to do with Scotland. The root cause of this is the nest of non-British NWO scammers in The City who have turned England and Scotland into doormats for their vile projects.
Hopefully Scotland is enlightened enough not to enter the EU
But thanks for one of your many daily "talk downs" to us dopes.
"..to cope with any surge in demand by Scots to withdraw cash in the event of a Yes vote" - do they expect a mass outbreak of Diarrhea after a "Yes" ? Why else hoard toilet-paper?
Lots of LOndon apologists and anti Scotlandonians here....
Face it, long term it will be good for Scotland. London needs more competitors
FtUK. Scotland starts fresh. Longshanks' center not holding.
Pssst, here's a secret. There are never enough bank notes to cover deposits.
Anywhere.
pods
sssssh!
Here's another secret the scots aren't aware of - "freedom", or the concept of it, is now dead with a spike in its belly, and liberty at her side. Someone clue them in.
Face it, everyone hates imperial England and imperial Amer... Oh, sorry.
Hear that Texas?
"some talking-head yesterday on CNBC proclaimed Scotland irrelevant"
"some talking-head yesterday in Scotland proclaimed CNBC irrelevant"
fixed for youIn the end, the outcome won't matter as both sides aren't having enough babies to replenish their populations. In 20 years, both sides will have another fight for freedom on their hands.
Good thing they're all stuck on a damp, cold island.
You have reached the truth.
Immigration is the key to understanding the scot's wish for independance. The massive internal movement of impoverished peoples into countries with ample social programs will push out the indigenous population.
As long as all the hungry people hope that things will be better in _____ They will not riot in their home country.
Every first world country faces this now.
So when does the dollar break out as the only bastion of security in the world? Guess dollar strength will teach Russia a lesson. Maybe everyone will start dumping their USD into this move. Noticed China just spent a load USD in India.
WHO WILL COUNT THE VOTES?
Already, the bank-biased media and politicians are pulling out all the stops to stop Scotland’s "Yes" vote. First the BBC lied by omission and now Prime Minister David Cameron, Deputy Prime Minister Nick Clegg and Labour party leader Ed Miliband are offering carrots. RT has both stories.
RT: Power play: UK leaders pledge further devolution if Scots vote ‘No’September 16, 2014 -- “Westminster party leaders have signed a joint pledge promising “extensive new powers” for the Scottish parliament if voters reject independence in Thursday’s referendum.
http://rt.com/uk/188104-pledge-new-powers-scotland/Earlier, the BBC political editor issued a bank-biased report trying to defeat the “Yes” vote.
RT: BBC accused of anti-independence bias after editing out Salmond’s reply to ‘bank exodus’ question
September 12, 2014 -- The BBC faces accusations of anti-independence bias after its political editor, Nick Robinson, produced a report that wrongly claimed Alex Salmond had ignored his question during a heated press conference.
Calling into question the impartiality of the publicly-owned broadcaster, the veteran BBC correspondent edited out Salmond’s lengthy answer, in which the First Minister claimed the BBC had skewed facts and colluded with the Treasury to undermine the “Yes” campaign
The exchange between Robinson and Salmond came after the BBC reported that a UK Treasury source said the Royal Bank of Scotland (RBS) would move its headquarters to London if Scots voted for independence. …
http://rt.com/uk/187344-bbc-scottish-independence-bias/
For more on Rick Robinson: http://en.wikipedia.org/wiki/Nick_Robinson
Practical liquid, easily transmissible, inflation-proof option for Scots: bitcoin.
So is ebola...
I guess the outcome depends on what criminal agency has the contract to tally the Scottish vote.
I hope the Scots pull it off. Self Determination for Scotland! Why the fuck not? More power to 'em.
I hope they all bought silver over the last week, as things may get a little nutty over there.
"Biggest hurdle for any Scottish bid for EU entry would be obtaining Germany’s “yes”"
Nope. Spain will veto as it will create a precedent for Catalunya...
Hope I am buying a bottle of scotch on Thursday. Then Next a bottle of burbon
Why would Scotland ever want to belong to the EU?
I'm 1/8 Scot. I hope the YES vote wins, but I'm not optimistic.
fact is that a majority of Scots want to be part of the EU, while a majority of Englishmen want to exit the EU
I'm 1/8 Scot...
Me too, I think. That is if you add up all the mixed blood from both / all sides. Anyway, from what I understand, the Scots of today are nothing like the disembowed Freeeeedom screaming Willy Wallace, and are more like the US' FSA for the most part content to allow their mum to wipe their noses and provide them cradle to grave "free" health care.
jmo.
Scots are dumb if they have not already moved all their money out of UK and out of pound
BANKROBBERIES BECOME PROFITABLE AGAIN!!!
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!
If the Scots vote yes and then join the EU and keep the pound as their currency, they'd be wasting their time. The pound and EU is what makes you slaves. Get away from the euro-crazies and the rothschild central banks. Good luck, Scotty.
They will not be able to keep the pound if they go independent. Having the pound means being able to print government bonds demoninated in pounds, payable by the Bank of England. No surpises that England will now allow that.
explain what exactly about the EU "makes you a slave"... if you can. as you just mentioned, currency has nothing to do with it
what is it? fisheries? the metric system? the banker bonus cap? free trade inside the EU? free movement of EU citizens inside the EU? the blue flag? what is it?
note, btw, that many Scots wish to be out of the NATO, and in the EU
what makes me slave is that i am forced to pay taxes
that's a good one. though I have to note that in the EU, taxes are collected by the sovereign countries for the sovereign countries, which then give a little to the EU
further, if the national tax collector sees you are not paying taxes, he calls the national police, which brings you to in front of a national court which then condemns you to a national prison
in short, no EU whatsoever involved in all that. all this would apply to an independent Scotland outside of the EU, too
to put it differently, in Europe, the EU is not "the state"
...yet...
like that aint the (temporary) goal?
should it? if yes, why should it? it's whole purpose is that of a shared facility. like one regulatory environment instead of 28 national ones
you can debate as long as you want, some sovereign nations here are midgets, in the international arena. Scotland might join the "midget class", this week
What a completely sincere and erudite way of describing what not being like an American truly means!
Nemo Jr, Thanks.
War truly does begat war.
Buried headlines are the real news. Ukraine, Scotland, Iraq they are all humans seeking life.
Bank holiday in 3, 2, 1. Insiders get out before then, of course. Then comes the confiscation. How do you like that conversion rate, Scottie! Enjoy your sheep and whiskey!
Pssssst - get your cash out now while you can... You can always put it back, but you can't always get it out!
Maybe Scotland can impose scotch sanctions on the uk. The libation is getting quite popular in china.
"If Scotland were to not pay its share of debt, junk status is probable; it’s unlikely to be excluded from markets for the avg time of ~10 years, but there’s “no free lunch” from opportunistic default"
Sure, like thats even a problem. They'll have their country back and the slavering banksters will extend "credit" as soon as anyone will accept the debt. Same as ever...
I think the No vote will come out stronger on the day.
Shame really. I would quite like to see a Yes vote.
As long as they know they will not get into Europe (Spain will definitely veto that), and they may struggle for a currency; they will be OK in the end.
Best of all, no more Labour governments for a very long time after they lose their 58 Scottish seats.
"Britain’s banks have been quietly moving millions of banknotes north of the border"
So quietly that we're reading about it here...