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Scottish Referendum

Scottish Independence – Sterling and the Bank of Last Resort – Ignore the Reckless Ranting of Desperate Unionist Politicians – This is the Definitive Position

 

 

 

 

 

 

 

When Northern Rock, RBS, HBOS  and other UK banking institutions failed, the UK Government belatedly stepped in with a financial bailout. But with Scotland independent, could Scotland expect English taxpayers to stand behind a failing Scottish institution?

George Osborne and his “Better Together” lot repeatedly broadcast, in the course of the referendum campaign, that in the event of a Yes vote the Bank of England would not allow Scotland to use sterling and would not act as the lender of last resort should Scotland experience financial difficulties in the future.

In the course of a “face to face” meeting on National television in Scotland Alistair Darling accepted Scotland had every right to use sterling and this would not need the authority of the Bank of England.

But he repeated the “mantra of fear” that the Bank of England would not provide bank of last resort support. But in reality Osborne and Darling were only intent on providing substance to their mendacious propaganda since they were well aware that provision of financial support to Scotland, if requested would not be withheld.

Precedence for such support had been established, at the time of the World financial crisis in 2008 when, the UK loaned Ireland £20 Billion, (at a knock-down rate of interest). In a statement, seeking understanding of his decision to, “prop up” the Irish economy George Osborne, UK Chancellor said, “Ireland is our very closest economic neighbour and we must assist.”

 

 

Last week,, said Labour “massively overpaid”, while

 

 

Bank of England officials and Grant Shapps (Conservative Party chairman)  claimed the UK Chancellor had botched the banking bailout and the Bank of England would never match the £10bn profit (out of the crisis) made in the US.

Sir Mervyn King, Governor of the Bank of England, said  “The sad truth is, in 2008, the idea of focusing efforts on recapitalising the banking system was a UK idea. We got there first but, like many UK ideas, the Americans developed it faster and better.”

The US forced all major banks to take State money, buying the stakes at about half their book value. The UK paid roughly twice the US rate, taking positions in the three worst-affected banks – RBS, Lloyds and HBOS.

A Treasury source said: “The Government judged that without a taxpayer injection the banks would have collapsed, with consequences for financial stability and people’s money, and it judged that was an unacceptable risk to take. The Government was bailing out UK banks with global operations.  Ireland was one international business, but not the only one.”

 

 

 

 

80% of the peak losses at RBS stemmed from its London-based businesses. The financial crisis shows us that bailing out the banks – like reinsurance – is a risk that is global in nature and shared between countries, and any tales about Scotland having to accept the burden all by itself are pure myth.

 

 

 

 

 

Bankers know perfectly well how the system works.

When Sir Philip Hampton, chairman of RBS gave evidence to the House of Lords in November 2012, he was quite clear:

“We have used many central banks as a lender of last resort for the many operations that we have in the many jurisdictions in which we operate. That is a key part of what central banks do in the jurisdictions that they control. Just because there might be an independent Scottish Government does not mean that all our lender of last resort facilities would disappear; they would be continued.”

This works when a country has a banking and a fiscal union, as the UK does.  And is supportive of the SNP’s plan for  “two governments one central bank” in the event of a Yes vote in the referendum.

The Bank of England would provide “bank of last resort” support to Scotland, if necessary. But should difficulties arise with the foregoing arrangements the final fall-back position (assuming both  rUK and Scotland retained membership of the EU) would be to seek assistance from their EU partners. Successful requests simply require a majority vote in favour, but the decision is binding on all EU members.

Provision of financial support would not be breaking new ground since this is exactly what occurred  when Ireland, Spain, Portugal and Greece were extended bank of last resort backing from the EU and the Bank of England donated its share.

 

 

 

 

Categories
Scottish Referendum

Gordon Brown Launches in Scotland

Gordon Brown Launches in Scotland

His speech on pensions was meant to re-launch the Better Together campaign as a positive movement, but his contribution simply continued Better Together’s negativity and scaremongering, as well as being repetitive and lacking in credibility.

The former Labour Prime Minister simply repeated claims made by former UK Government minister Michael Moore in September 2011 and by Tory Leader Ruth Davidson in February 2012. It is also surprising that Brown was chosen to speak about pensions, given his own record on pensions as Chancellor and Prime Minister.

The 1979 Conservative Government reduced the long term value of the State Pension when it abolished the link between the State Pension and earnings.

As Chancellor and then Prime Minister, Gordon Brown did not restore this link.

Brown introduced the notorious “pension stealth tax” which reduced the value of retirement funds by at least £100 billion.

And despite stating the Labour Government was helping the poorest pensioners, as Chancellor, Brown increased the state pension by just 75p in 2000.

With a Yes vote pensions will continue to be paid in full and on time, just as they are now. Scotland is also better placed to afford our pension costs than the UK as a whole.

Expenditure on social protection, which includes pensions, has been lower in Scotland than the UK over the past five years. In all 42% of Scottish tax revenues were spent on social protection in 2012-13, in comparison to 43% for the UK as a whole.

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Scottish Referendum

Gordon Brown and the Labour Party – Friends Of Scottish Pensioners – Not on Your Nellie!!!!

 

 

 

 

Gordon Brown: Sentenced Scottish pensioners to ever decreasing pensions in refusing to restore the link between the State pension and earnings.

 

Gordon Brown : Removed £5 billion, (recurring annually) from pension funds.

 

Gordon Brown: Created the obnoxious, stealth tax decimating the value of retirement funds by £100 billion.

 

Gordon Brown: Flogged 60% of the UK gold reserve for a pittance.

 

Gordon Brown: Increased pensions by a stupendous £0.75p in 2000.

 

Gordon Brown: Bailed out the banks in 2008 purchasing shares at 3 times the going rate.  The R.B.S. bailout cost the UK taxpayer £45 Billion. But if Alistair Darling and Sir Nicholas MacPherson had acted timeously the bailout would have cost the taxpayer  £15 Billion.

 

Gordon Brown: Spouts about the excellent work of Westminster with an attendance record of less than 13%.

 

Gordon Brown: Voted in the Commons on Scottish matters less than 13% of the time.

 

 

 

 

 

 

Categories
Scottish Referendum

Lender of Last Resort – A Timely Reminder For the Future

 

 

Lender of Last resort

Bankers know perfectly well how the system works. When Sir Philip Hampton, chairman of RBS gave evidence to the House of Lords in November 2012, he was quite clear:

“We have used many central banks as a lender of last resort for the many operations that we have in the many jurisdictions in which we operate. That is a key part of what central banks do in the jurisdictions that they control. Just because there might be an independent Scottish Government does not mean that all our lender of last resort facilities would disappear; they would be continued.”

 

 

 

 

Categories
Scottish Referendum

Carousel Banking RBS Losses

Let’s get back to 2007.

At the time RBS, HBOS and others were in danger of failing, the UK Treasury finally stepped in, (after much dithering on the part of Alistair Darling et.al.) with some financial assistance.

The main package of financial support, had been provided, to the Bank, (at least 3 weeks before) by the USA.

80% of losses in the market, were attributed to RBS London based business operations.

Lets look forward, (to an independent Scotland)

Westminster politicians, (in a rather purile fashion) continue to broadcast that an independent Scotland, should not expect English taxpayers to stand behind failing Scottish banking institutions.

A reminder; 80% of losses at RBS in 2007 were attributed to (Carousel Banking) in London. That would be one liability removed.

All banking crisis, (in a world free trade market) are global and losses will always be shared between countries. Myths, (mischeviously circulated by Westminster politicians) are pure piffle.

In a banking crisis banks will call upon many Central Banks as a lender of last resort. That is the over-riding role of Central Banks in the jurisdictions that they have control over. e.g. 80% of losses attributed to London in 2007 would still be the responsibility of a UK government.

Don’t let them scare you into submission. Vote, “yes” to independence

Categories
Scottish Referendum

Student Loans Universities

They need an “overhaul” BBC propaganda says, Public Sector sells off like this to the City is great but bankrupt universities in England will be able to;

1. Buy a share of the loan book, not all of it. They could also be paid for their services in part in debt.

2. Even a strong university like Leeds would go from having debt equivalent to about 38% of its current annual income to well over 100% within three years.

3. The idea is still in early stages and would also require careful design to avoid unwanted consequences – for example, the easiest way to cut loan defaults would be to, ADMIT FEWER WOMEN AND STUDENTS FROM POORER FAMILIES, since both groups tend to have lower lifetime earnings.

4. But if universities were to share some risk, the Treasury might allow them to charge more.

The student loan system is in crisis. A significant number are not being paid off, (£billions) and they will need to be treated in the same way as sub-prime assets. This means some financial body will take the outstanding loans on and pursue ex-students for the money +interest on the default.

http://www.bbc.co.uk/news/education-28528824

Vote Yes Scotland to keep us out of the madhouse.

Categories
Scottish Referendum

Fracking

Fracking. It appears licenses have been awarded and drilling has begun in Scotland. All new to me. Very worrying.
Find out if your home is likely to be affected check the excellent site which provides full details of fracking activity in the UK.

Map of UK Fracking Sites


Also check out the experiences of members of the public in the USA
http://rt.com/usa/154408-fracking-trial-family-sued/
http://rt.com/usa/gag-order-children-fracking-settlement-982/
http://rt.com/usa/oklahoma-earthquake-record-fracking-961/
http://rt.com/usa/barge-shipments-fracking-waste-297/
http://rt.com/usa/california-fine-vintage-fracking-727/
http://rt.com/usa/study-methane-fracking-water-280/
http://rt.com/usa/fracking-rules-gas-oil-443/
Also check out the views of the Chief Exec of Exxon
http://rt.com/usa/exxon-ceo-fracking-lawsuit-180/ Not in my backyard. Exxon Gas chief exec

Categories
Scottish Referendum

The final word – An Independent Scotland Can Retain Sterling as Its Currency If It Wishes To Do So – Official – Yet Another Westminster Scare Rebuffed

 

 

Image result for Scottish independence finance images

 

 

 

 

 

Currency in an independent Scotland

The Financial Times revealed the true extent of an independent Scotland’s riches and the Scot’s are not the, “subsidy junkies” the BBC and, “Bitter Together” campaigns would have you believe. In an independent Scotland prudent bankers will accept there are solid business reasons for spreading the risk of any future failure. This they will achieve by retaining their businesses in a proven energy rich Scotland.

In the event of an economic collapse and bankruptcy in England, perhaps brought about by a run on sterling by investors following an implementation of BREXIT. many, faced with large increases in interest repayment rates and a massive property crash, coupled with a large increase in unemployment, will move their capital and souls to Scotland.

The chief executive of Royal Bank of Scotland made it clear the bank will adapt its business for an independent Scotland. Pointing out that RBS has been in Scotland for nearly 300 years he said: “It’s really important that the Scottish people get the opportunity to vote, and then if I need to adapt my business to serve England, Scotland, Wales and both the Republic of Ireland and Northern Ireland, then I will.”   http://www.theguardian.com/business/2014/feb/12/scotland-independence-rbs-london-ross-mcewan

Related image

 

 

 

 

Official – Scotland Can use Sterling without a currency union – Guernsey and Jersey do it

In the 2014 referendum the UK Chancellor and others supporting “Better Together” repeatedly stated that Scotland would not be allowed to retain sterling as its currency without asking permission of the UK government. But Alistair Darling, (leader of Better Together) finally admitted, on national television (In his final debate with Alex Salmond) that Osborne was talking p**h. Scotland could use sterling if it wished to do so.

Peter Spence, (an acknowledged expert in the fields of; Central banking, financial markets and wider issues in economics) writing for the respected financial journal,”Cityam”  rebutting the Chancellors statement said “Proponents of Scottish independence might prefer an example closer to home. The British crown dependencies of Guernsey and Jersey have just such an arrangement with the UK, and has been managing just fine since the pound became its currency in 1834.”

His position was further clarified by Sam Bowman, (Research Director at the Adam Smith Institute), who said “an independent Scotland would not need England’s permission to continue using the pound sterling, and in fact would be better off using the pound without such permission.”

Rules were published by the EU in 2006 – “Monetary and exchange-rate agreements between the European Community and Third Countries.” The paper states: Guernsey and Jersey are “sovereign with regard to their monetary regime”. See: http://ec.europa.eu/economy_finance/publications/publication658_en.pdf”

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Image result for Scottish independence finance images

 

 

 

 

 

 

 

Categories
Scottish Referendum

Commonwealth Games

Woman removed by police from Tollcross swimming venue

Word going round is that the woman was, “spotted” by the BBC camera’s. The police were reminded of the Games rules and asked to remove the lady from the venue so that the BBC would be able to, “pan” the crowd freely.

Police Scotland explained their heavy-handed approach by saying “flags from non-competing nations or flags affiliated with to other organisations or causes, political or otherwise, are restricted.”

http://dailywales.net/2014/07/29/police-clamp-down-on-yes-stickers-while-team-england-invades-wales/

Categories
Scottish Referendum

NATO and the Nuclear Umbrella – A View

NATO and the Nuclear Umbrella – A View

“One of the ironies in the whole debate about nuclear weapons in the UK is that Scotland, who have them, don’t want them, and England who don’t have them, want Scotland, who don’t want them, to keep them”

George Robertson, other Unionist politicians and the, “Blether Together” campaign have been, spreading their usual gloom and doom lies making great play on the stated intention that an independent Scotland would require an early removal of Trident from the Clyde. Their, “cry’s of foul play” have added threats that Scotland is applying double standards, removing Trident then asking that membership of NATO and it’s “nuclear umbrella” be extended to Scotland. George Robertson and a few right-wing US politicians have issued grave warnings that Scotland would be denied NATO membership, if they followed through and forced removal of Trident. Dismantling the foregoing piffle is not difficult, since George and his pals have been at it before;

George Robertson, former Secretary General of NATO, (in 2010) criticized a German government proposal to withdraw all remaining American, (tactical) nuclear weapons from German territory as damaging not only to Germany, but to the NATO alliance as a whole. He said that the proposal was driven more by populist sentiment than any long-term strategic goal. In response critics of Mr Robertson stated that Robertson’s opinions were based on outdated perceptions.

Recent U.S. – Russia bilateral negotiations to reduce long-range weapons did not cover B-61s in Europe. There are an estimated 200 B-61 thermonuclear-gravity bombs, (tactical weapons) scattered across, Belgium, Germany, Italy and the Netherlands. Under a NATO agreement struck during the Cold War, the bombs, which are owned by the U.S., can be transferred to the control of a host nation’s air force in time of conflict. Twenty years after the fall of the Berlin Wall, Dutch, Belgian, Italian and German pilots remain ready to engage in nuclear war.

In 2001, when the Greek air force ordered a new fighter jet, it chose a model that could not carry the B-61, forcing the U.S. to withdraw its weapons there. The U.S. still stores weapons in Turkey, but some experts say the Turkish air force is no longer involved. Canada gave up it’s support of nuclear weapons many year’s ago. All three countries remain to be full members of NATO. Up your’s George !!!

Another spoiler. Forming part of a rolling replacement programme, to be completed before 2020 all Tornado jet fighters that are equipped to carry tactical nuclear weapons will be scrapped. The successor aircraft, The Eurofighter,(Typhoon) a joint European development, now in service in, The UK, Germany, Italy, Spain, throughout europe and sold worldwide in ever increasing volumes, is not capable of carrying nuclear bombs. Howszat George!! Not one of the countries concerned is threatened with expulsion from NATO.

Heather Conley of the Center for Strategic and International Studies stated, “we are allowing aircraft selection to determine our posture,”. “Given that Europe’s hidden nuclear arsenal is unpopular, potentially unsafe and a hindrance to global nonproliferation efforts, it’s time for it to go.

http://content.time.com/time/world/article/0,8599,1943799,00.html
http://www.armscontrol.org/print/1818
http://www.nti.org/gsn/article/nato-should-use-summit-address-us-tactical-nukes-europe-experts-say/