• With: Dan Quayle

    This is a rush transcript from "Your World," September 17, 2014. This copy may not be in its final form and may be updated.

    NEIL CAVUTO, HOST: This coming into us now, though. If Wall Street is concerned about a sudden shakeup in Western economies, it had a funny way of showing it, the Dow sprinting to a record today, 17156.92.

    Now, a lot of that was buoyed by the Federal Reserve and very, very pro-dovish comments about interests rate not going up any time soon. But a lot of was a lot of sanguine kind of reaction to what is going on in Scotland, that it won't happen, that Scotland will not leave her majesty's kingdom.

    The former Vice President of these United States Dan Quayle on the fallout if just the opposite occurs.

    Mr. Vice President, good to see you.

    DAN QUAYLE, FORMER VICE PRESIDENT: Good to see you as well.

    CAVUTO: You have Scottish blood in you, right?

    QUAYLE: I do have a little Scottish blood. I like your -- the way you speak a little Scottish.

    CAVUTO: Well, thank you.

    QUAYLE: I won't try to do it.


    CAVUTO: I watched a lot of "Austin Powers" movies.


    QUAYLE: There -- there you go.

    CAVUTO: But what do you think? The president has already indicated he hopes the United Kingdom sticks together. Our official policy is that that should be the case. Most global leaders say the same thing.

    What do they fear?

    QUAYLE: I think they fear, if Scotland does vote for independence, which I hope they don't -- and I don't think that they will -- they're going to go right up to the abyss and look into it and vote no.

    And the reason is because it will start a domino effect. Who is next? Is it Northern Ireland? Is it Wales? Is it Catalonia? There's a rise of national...


    CAVUTO: Catalonia and Spain, that's -- that's been bubbling for a while.

    QUAYLE: Well, yes. We will revisit Quebec again.

    So I don't think it's going to happen. There are a couple things. I do not believe that these referendums on something this important should be decided with 51 percent. Let's just say it passes. That means 49 percent -- or say it's 50-50 -- are absolutely opposed to it.

    To do something like this important, you should have at least 60 percent. Therefore, the country really wants to go in this direction. And just simple majority, I don't think, really works.

    CAVUTO: Well, what is your fear, Vice President? Is that all of a sudden -- we hear talk it's going to lead to a run on the euro, that currency is going to feel it. The Brits could feel it. It might lead to Cameron's resignation in Britain.

    I understand and hear a lot of that, but maybe none of that happens.

    QUAYLE: Well, forget about the political ramifications, you know, whether Cameron would stay or go. It wouldn't be a good thing for his administration to preside over this.

    But you had this earlier run on the banks. What are you going to do about the currency? What are you going to do...


    CAVUTO: Well, the Scots want to stick with the pound. That's a lot easier said than done, right?

    QUAYLE: Well, London's not going to allow that if they leave.

    CAVUTO: Yes.

    QUAYLE: And the way I understand it, there's actually an 18-month transition period.


    CAVUTO: That's right. That's right.

    QUAYLE: And my guess, if it does pass -- I don't think it will, but let's -- it might. There's a lot of libertarians up there, and they had the Scottish parliament in 1998, so this is sort of the next step.

    Once you get the parliament, then you get to full independence. But that 18-month transition period, my guess is if they would say yes, within that period of time, they will figure out how to say no, because it's not good for the Scottish people...


    CAVUTO: Well, who would take advantage of the vacuum then? Is there a fear that Russia tries to meddle in Scottish affairs or what?

    QUAYLE: It's just -- it's just chaos.