www.bbc.co.uk/news/business-25710129
It looks like the UK is going to guarantee govt bonds and "hope" that Scotland takes their fair share if they win independence.
If they do gain independence, what's the betting that they will say "tough it's all your debt"?
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"If they do gain independence, what's the betting that they will say "tough it's all your debt"?"
About a million to one I'd say. Would be economic suicide for Scotland.
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>> "If they do gain independence, what's the betting that they will say "tough it's all
>> your debt"?"
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>> About a million to one I'd say. Would be economic suicide for Scotland.
would have been suicide for the UK right now, right this minute, in the next eye blink, if the answer had been "Well, err, we are not sure who will be responsible for this trillion pound debt pile"
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>> would have been suicide for the UK right now, right this minute, in the next eye blink, if the answer had been "Well, err, we are not sure who will be responsible for this trillion pound debt pile"
Since the UK is slowly heading towards fiscal balance (unless Labour get back in 2015), I presume the general hope is for inflation to slowly erode this enormous pile of debt (at least its value in real terms) at the expense of savers and pension funds.
Something feels strange about how the world is attempting to balance its books - currently UK plc can borrow money at such a low rate (as can most other countries not on the brink) that I feel there is an economic stitch up going on between the developed economies.
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You omit to mention that the managed state of UK economy, until 2008, was disrupted by Tory pals: the bankers. The IMF confirmed, the increase in national debt was NOT due to excessive public spending! Despite the propaganda from the right, the scale of the fiscal damage seems so large that many have forgotten the need for the Government to bailout banking incompetence and criminality.
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And exactly who was in government for the 10 years prior to 2008?
And if the National debt wasn't caused by overspending, I guess it was caused by undertaxing.
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Undertaxing in part: that is what happens when a slump hits. GDP drops, as do tax receipts, when vast amounts of capital has to be used to counteract bank instability.
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>> I feel there is an economic stitch up going on between the developed economies.
What, you mean using control of the world economy to maintain a complex system of interweaving inequalities with themselves floating on top? No, no, surely not. They could never do anything so immoral.
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>> If they do gain independence
Does that seem likely? It doesn't to me. But I am often wrong about what's going to happen. Fingers crossed, because a vote for Scottish independence would be a frightful nuisance and unbelievable bore.
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1. I can't see the vote going the way of the Nats.
2. If it somehow does I expect Scotland will guarantee a portion dependent on population or as a slice in proportion to the money it has received over the past 30 years. The 'actual debt' will remain with the Bank of England.
3. Noone will lend to Scotland if they default - anyone want to invest in Icelandic bonds?
I think you only need to read 1. above.
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>> I think you only need to read 1. above.
Agreed
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Ok, but I bet they will argue for the absolute minimum, leaving us with the lion's share.
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Considering 20% of Scotland's population live in Glasgow where half of the people fly red/white/blue (FTP 1690 No Surrender) and the other half green/white/gold (Up the RA) there's precious little chance the rest of the country can sway an Independence vote.
The Highlands, where a majority would vote for independence has a population of about 7.
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>> who is us?
Those south of the border!
:-)
Last edited by: zippy on Mon 13 Jan 14 at 21:05
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Guarantee to Bankers - CGNorwich
