For now we are all in desperate mood of fighting Have no idea why

Having rejected independence and lost first minister Alex Salmond, Scotland woke up to an unsettled future Saturday as fears grew that new powers promised by London will prove a disappointment. Violent scenes in Glasgow's main square on Friday night may not been repeated elsewhere but many Scots see their nation as divided and are looking to the next few months with uncertainty. A key question is what fresh powers Conservative Prime Minister David Cameron and Britain's other main parties will now hand to the Scottish parliament in Edinburgh. Many people do not trust a Westminster elite preoccupied by a general election in May to honour a pledge of accelerated devolution made in the heat of the campaign. Salmond said Friday that the proposed timetable already showed signs of slipping and warned that "some of the people who voted 'No' will be incandescent" if it is not delivered.

The downside of deploying a separate currency with your main trading partner is that this increases transaction costs, as well as the risk of a destabilizing debt/currency mismatch. We witnessed this during the Asian financial crisis, while one lesson from the euro was that it was effectively forced to stay together despite devastating unemployment in Greece and Spain, as separate currencies would have made debt default inevitable. This in part explains why the common-sense choice is for Scotland to use sterling. It is also hardly controversial as it is how the independent Irish government arranged its currency post-1923 for over 50 years. It also illustrates why the Scottish government has taken the position that if Scotland is denied shared assets such as sterling, it is also relieved of shared debt obligations. Meanwhile, Scotland is not without its own hand to play in this currency standoff. It may have just one-tenth of the population but has one third of the land mass and a coastline almost double England and Wales. The oil and gas below Scotland’s waters contributed some 35 billion sterling toward the U.K.’s current account last year. With a formal currency union, Scotland helps to plug the U.K.’s trade deficit.