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To: GeronL

Wrong.
The Treasury borrows from the international money markets on behalf of the whole of the UK and then gives Scotland 9.3% (£64.5b from a UK total of around £693.5b in 2011/12) of that borrowing. However, Scotland contributes 9.9% (£56.9b from a UK total of around £574.7b) of the tax revenues to pay the debt back including around 3% compound interest. So Scotland (as part of the UK) has to pay relatively more to borrow than the rest of the UK (9.9% being a higher figure than 9.3%). Therefore, Scotland subsidised the UK (in 2011/12) to the tune of around £4.1b (9.9% of £693.5b=£68.6b).


18 posted on 06/09/2014 3:04:18 AM PDT by MadMitch (nemo me impune lacessit)
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To: MadMitch

Scotland benefits from being part of the UK because it can borrow money at favourable rates. If Scotland becomes independent, it will probably be rated something like BBB and be forced to borrow money at usurious rates of interest that will cripple the economy, especially given that the YesNP is committed to sky-high public spending on all these socialist goodies that they’ve promised the Scottish people, unfunded by revenue from the shipbuilding/defence and financial industries that have said they will flee accross the border to England to shelter under the proven currency and economy of England.

Oh, and the SNP’s assumption that they will get a currency union or simply adopt the pound without a lender of last resort is pure genius (not), and will terrify most investors who fear an almost inevitable Scottish default. In any case, how can anyone possibly be right-wing and in favour of Scottish Independence? It will basically entrench socialism in Scotland and its usual ruination of the economy and statist social policies.


28 posted on 06/17/2014 4:10:28 AM PDT by sinsofsolarempirefan
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