Currency conundrum: Scottish nationalists want monetary union with the rest of Britain but fiscal and political separation
Posted on 10/12/2012 11:52:40 PM PDT by bruinbirdman
A fatal financial contradiction lies at the heart of the Scottish National Party’s plan for independence
Currency conundrum: Scottish nationalists want monetary union with the rest of Britain but fiscal and political separation
'In or out” – that is the question. Scots, we now know, are to be presented with a simple choice when the referendum on whether to remain part of the United Kingdom is held in 2014, with the devo-max option traded in for a lower voting age. Only in practice, nothing is ever that uncomplicated.
What Scotland will in fact be voting on is whether to give its devolved government a mandate to negotiate independence. Precisely what form that separation takes is at this stage anyone’s guess, and is highly likely to remain so right up to the time Scots make their fateful decision. In that sense, they will be voting blind. Critical issues such as the share of national debt Scotland takes on, whether it is made liable for the tens of billions spent bailing out Scottish banks, what share of tax revenues from North Sea oil belongs to Scotland, and therefore what sort of a fiscal position it will be in after separation, are likely to remain unanswered.
Now obviously, Alex Salmond, Scotland’s First Minister, has his wish list. It goes like this. You keep all the national debt, we keep all the oil and, since it was London that messed up so spectacularly in regulating the Scottish banks, you can keep those liabilities too. Salmond is demanding a whopper of a divorce settlement, even though he is, as it were, the guilty party. That Westminster would just roll over and let its tummy be tickled seems unlikely. But it is the monetary arrangements that are the most problematic,
(Excerpt) Read more at telegraph.co.uk ...
An estimated 90% of the Scottich population is on the public dole - a number I think dubious. But then I don’t know whether ‘tis true or not.
Anyone?
It’s very simple. Scotland wants complete freedom and independenc, but paid for by someone else.
Sounds like my teenagers.
Can someone compare that 90 percent statistic with the rest of Britain?
Under European welfare state conditions, it’s become normal even for strong conservatives to accept government handouts on the grounds that their tax dollars are paying for it. Examples include some countries where stay-at-home mothers get government stipends comparable to what work-outside-the-home mothers get for child care, which were negotiated long ago in parliaments as ways to support traditional families in return for other welfare programs most conservatives would strongly oppose.
We have a parallel in the United States with social security. How many conservatives take social security checks upon retirement, and justify it by saying “I’ve paid into it my whole life?” I’m certainly not criticizing those who take social security, only pointing out that once tax rates become exorbitant, even people who oppose government entitlement programs in theory decide they need to take them to survive economically, noting (correctly) that virtually everybody around them is doing so.
That probably ought to be a warning for our own future. Once government taxation and spending reaches a certain tipping point, even people who in principle oppose government handouts start taking them.
Wish Puerto Rico would take this approach. I’d love to cut that cord.
I want it for Texas!
I have some English in-laws who live in Scotland. They claim only about one third of Scots favor independence. They, my in-laws, think it’s very doubtful that there will be an independent Scotland.
So far, they see Greece getting away with it. All being self-reliant does is make you a target for the socialist parasites.
We have visited with Scottish friends in Fife — Not much commerce, a lot of businesses shuttered, and all their relatives living in government apartments, sitting around watching TV all day. It’s depressing. Some of them had off the books jobs bartending and such, but kept it secret so that they wouldn’t lose their benefits.
It’s very simple. Scotland wants complete freedom and independenc, but paid for by someone else.
Sounds like my teenagers.
ROTFL! Hilarious
Fixed it for you.
The polls agree.
Some people just make their living in politics advocating this kind of stuff.
yitbos
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.