Debt free Scotland Debt free Scotland
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  1. #1

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    Default Debt free Scotland

    If it goes independent...

    "UK Treasury had no choice but to give Scottish independence debt pledge

    In reality, the Treasury had little choice but to take responsibility for the UK's entire debt stock in the event of Scottish independence.

    That had always been seen as the preferred option, but as investors returned for the new year and the referendum was suddenly on the horizon they were hungry for reassurance. Their questions over who is on the hook for paying back UK bonds are answered: The UK continues to cover the debt and – this is the tricky question – it must separately agree with a new Scottish government how to share that burden.

    The announcement from the government on Monday that it would cover all issued UK government bonds, known as gilts, also makes for reassuring headlines for those voting in the referendum. With a whole list of economic uncertainties around independence and the potential unwinding of 300 years of constitutional union, it is one less thing to worry about."

    UK Treasury had no choice but to give Scottish independence debt pledge | Politics | theguardian.com


  2. #2

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    Quote Originally Posted by AtW View Post
    If it goes independent...

    "UK Treasury had no choice but to give Scottish independence debt pledge

    In reality, the Treasury had little choice but to take responsibility for the UK's entire debt stock in the event of Scottish independence.

    That had always been seen as the preferred option, but as investors returned for the new year and the referendum was suddenly on the horizon they were hungry for reassurance. Their questions over who is on the hook for paying back UK bonds are answered: The UK continues to cover the debt and – this is the tricky question – it must separately agree with a new Scottish government how to share that burden.

    The announcement from the government on Monday that it would cover all issued UK government bonds, known as gilts, also makes for reassuring headlines for those voting in the referendum. With a whole list of economic uncertainties around independence and the potential unwinding of 300 years of constitutional union, it is one less thing to worry about."

    UK Treasury had no choice but to give Scottish independence debt pledge | Politics | theguardian.com

    To me it sounds more like:

    "Dear Scottish Voters,
    We have been asked to drop a heavy hint to you that if you vote for independence you won't have a credit rating."

  3. #3

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    Quote Originally Posted by expat View Post
    To me it sounds more like:

    "Dear Scottish Voters,
    We have been asked to drop a heavy hint to you that if you vote for independence you won't have a credit rating."
    If Iceland can borrow then Scotland should have no problem.

  4. #4

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    Quote Originally Posted by BrilloPad View Post
    If Iceland can borrow then Scotland should have no problem.
    ISTM that the attempt to persuade potential creditors not to lend is secondary, the main aim is yet more FUD from the No camp so the voters are scared to vote Yes.

    Pity the referendum is before any EU referendum: an anti-EU vote from England would get a Yes vote to independence.

  5. #5

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    Quote Originally Posted by expat View Post
    To me it sounds more like:

    "Dear Scottish Voters,
    We have been asked to drop a heavy hint to you that if you vote for independence you won't have a credit rating."
    They won't have any debts too - 0% GDP debt ratio, best in the EU... AAA credit rating surely.

  6. #6

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    Quote Originally Posted by AtW View Post
    They won't have any debts too - 0% GDP debt ratio, best in the EU... AAA credit rating surely.
    I wonder - if the independence referendum is positive and the Scots go their own way, the day after independence will they take out a payday loan? :-)

  7. #7

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    Quote Originally Posted by AtW View Post
    They won't have any debts too - 0% GDP debt ratio, best in the EU... AAA credit rating surely.
    On day 1, yeah. But by day 2 they'll be heading down that slippery slope.

  8. #8

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    Quote Originally Posted by derek_c View Post
    I wonder - if the independence referendum is positive and the Scots go their own way, the day after independence will they take out a payday loan? :-)
    Don't you have to have a payday to get a payday loan?
    And what exactly is wrong with an "ad hominem" argument? Dodgy Agent, 16-5-2014

  9. #9

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    Quote Originally Posted by barrydidit View Post
    On day 1, yeah. But by day 2 they'll be heading down that slippery slope.
    Or some scots could maybe fill some contract roles in England and take all the money back up north to spend on haggis, whisky and kilts, therefore filling the government coffers
    On Desolation Boulevard, they'd light the faded lights.....

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    Quote Originally Posted by TestMangler View Post
    Or some scots could maybe fill some contract roles in England and take all the money back up north to spend on haggis, whisky and kilts, therefore filling the government coffers
    tulip, you've got a point there. If only there was some way of fleecing cash off them whilst they were down in England

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