Yesterday, The Slog opined as follows in relation to the UK Chancellor’s challenges:

‘I suspect a Scottish Yes vote is what Little Squeaky [Osborne] fears most. While Scotland ‘got’ £16.5bn more in UK public spending than it contributed to total UK revenues in 2009-10, this is no longer true, and the Chancellor knows it: Scotland now pays more in tax per head than the rest of the UK. Out of just under £560 billion of public spending in 2012-13, England accounts for £456bn – with just £54bn spent on the Scots….a shrinkage in the Sterling Area may well play very badly for the Pound….a cheap Pound gives you a head start in exports….briefly. Then, when the time comes to buy the next round of raw materials and food, it bites you in the backside. Also a steep fall in the currency could set off a panic.’

Well, since then Sterling has fallen to a 10-month low against the dollar amid a sell-off of Scotland-linked companies. And the panic has presented in terms of all three Party leaders cancelling PMQs to head North and salvage the situation.

An awful lot of squitty bottoms are now at risk in this scenario, but for the life of me I don’t understand all of it.

For example, I keep reading in the Mail that Cameron’s job is at risk if the Scots vote Yes. But if the Scots vote Yes, Labour will lose 50 seats, and the Tories none. This would leave the Ed Miller Band in permanent opposition. And yes, the Mail says Ed Miliband’s job is at risk if the Scots vote Yes. How can both things be true?

Is the Queen’s job at risk? Some on the Right are clamouring for Brenda to wade into the sh*tstorm, although I’m sure she has more sense.

What we are witnessing here is a coop of headless chickens. I can tell you categorically based on solid sources approached today (a) there is no Whitehall contingency plan for a Yes vote: none whatsoever. And (b) Brussels is all over the place on the subject of what the Scottish currency should be…thanks to George Osborne saying under no circumstances would an independent Scotland be allowed to share the Pound.

Typically, the markets are already adopting full panic mode, and all Caledonian companies suffered share falls today. With relative ease, what Camerlot was seeing as a pr exercise three months ago could turn into the obscure catalyst that finally dooms the EU – and perhaps Western banks as a whole.

It beggars belief….and yet suggests a certain insane familiarity.

Earlier at The Slog: Greece stumbles from surprise to surreal