Scottish Currency – Update

Yesterday during a debate at Leith Academy concerning the referendum on Scottish Independence, the current Scottish Finance Secretary John Swinney, confirmed that if Scotland does not get a currency union with the rest of the UK, Scotland will not take on any of their proportion of the National Debt.

http://www.bbc.co.uk/news/uk-scotland-scotland-politics-28943041

Essentially they are having Conniption fit.

Let me pose some questions for those interested in the debate on Scottish Independence.

  1. If Scotland does not take its share of the national debt – Scotland should be considered in default from day 1.  How will Scotland fund its government going forward?
  2. As Scotland is not taking their national debt – Scotland will have NO asset. No Roads, No Schools, No Railways, No Air Traffic Control etc.
  3. What reaction do they expect from the population in the rest of the UK to do if Scotland defaults?
  4. Joining the EU, when you are defaulting – I can’t see the rest wanting a defaulter joining!
  5. British Banks should be banned from trading with Scotland!
  6. Setting up their armed services when you can’t pay your debt!  Is Scotland going to be satellite state of Russia?
  7. Trade with Scotland by the rest of the UK represents only 10% of total trade. But Scotland’s trade with Rest of the UK is 70% of trade.  What happens to their business if severe import duty are imposed, in part to pay their proportion of the debt.
  8. What currency is Scotland going to use – we still do not have any form of plan B.  If I were running a business in Scotland it would make planning very difficult.

Some of the likely reactions will be:

  • No Dual Nationality
  • Complete split of the pensions – Scottish National Pensions to be frozen from day 1 of independence
  • Border controls
  • No right of employment
  • No payment of redundancy for government employees in Scotland by HMG Government – as a result of independence.
  • Scottish MPs being emasculated in Westminster Parliament
  • Scotland will be treated as a Foreign Country – There will be no prospects of an equivalent of the Government of Ireland Act of 1948

The other consideration for Scotland is what happens if the vote goes against independence.  I don’t think that Scotland can expect that things will stay exactly as they are.  I as a non-scot would expect that changes are made in the way the UK is run and the ability of Scottish MPs to vote on bill which do not impact on Scotland should be removed.

Based upon the pronouncements of the SNP during the debate I can see the following not happening / being in place once Scotland going independent:

  • Membership of EU
  • Membership of NATO
  • Being a member of the UN
  • Having its own currency
  • Having its own passports

Other impacts for Scottish Nationals

  • All embassies operating for the rest of UK government will not offer support to Scottish Passport holders
  • Pensions for Scottish Nationals will be frozen on Scottish Independence Day
  • Employment in the rest of the UK should now be subject to a Visa Requirements

In summary, how can Scotland honestly expect the other EU members to agree to Scotland’s membership when:

  • Has no central bank
  • Has no currency
  • is defaulting on its national debt
  • Scotland is acting like a spoilt child who not only wants the cake but also to eat, otherwise it will continually throw its toys out of the pram!.

The behaviour of the SNP is such they have never learnt the basic manners, and are so used to acting as the school yard bullies.  NOTE to Alec Salmond and co.  We are fed up of your bullying antics and time for Scotland to go totally independent.  When you go bust – you’re on your own.

 

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