Thursday, 11 September 2014

Will England have to repay Scotland's debts?

Will England have to bail out Scotland.if the independence referendum goes the SNP's way? The SNP thinks so -

"Alex Salmond has been accused of laughing off the prospect of repaying a share of national debt should Scotland become independent by allegedly joking: 'What are they going to do - invade?'.....[he] insisted that the country would continue to use the pound after a Yes vote, warning that it could default on its share of the national debt if the UK Government did not agree to a currency union."

So if Scotland gains independence (within the confines of the EU, of course) then either the Bank of England continues to prop up Scotland's failing economy, but this time without the UK Treasury being able to impose any sort of financial discipline on Edinburgh.....or the rest of the UK continues to bail out the Royal Bank of Scotland - registered in Edinburgh until the board heard the news - only this time without any help from the Scottish taxpayer.

I expect Salmond is also thinking of repudiating Scotland's share of the national debt if English taxpayers stop subsidising his country's bloated public sector, too.

Tell you what, why doesn't the UK just repudiate the national debt, much of which was run up after Salmond advised RBS on how to run a bank? And let Scots finance their own public services in future - in euros? They won't have to pay too much extra tax once their masters at the ECB impose their swingeing public sector cuts, after all.

4 comments:

  1. Just tell wee eck to blow it out!
    I bank with Lloyds and RBS, won't if the sweatys leave.I work in oil and gas, no contracts taken above the border; they can work it out themselves!
    They want to be careful what they wish for, they might just get it good and hard!

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    1. Aye, and wee eck will blame us Sassenachs. the noo!

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  2. He should remember the Clearances.

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    1. As a modern laird he's clearing Scotland of its major employers....

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Keep it clean.....