a reply to: ScepticScot
I'm a bit confused as to how they can quantify a "Scottish share" of defence anyway, besides, that isn't really relevant. They spend £3 Billion now
(regardless of "share") and intend to spend £3 Billion in the future, ergo, no budgetary difference. It was you who brought up how the Scottish
Government includes defence in it's accounts, so we should ignore it for iScotland but actually we can't, as they plan on spending the same.
And yes, the Yes campaign do paint a picture of a Scotland that would be "prosperous", "one of the richest in the world", "held back by Westminster"
etc etc, so they do indeed paint a false picture. It isn't a "strawman" in the slightest, this is word for word what Salmond et al have been saying
for months. My question is still how do expect to operate with an 8% budget deficit? This is still not being answered by any of you, instead you dance
around the subject like it won't be a problem - it will.
As for the credit rating - leading on from the deficit question - it has already been pointed out by the ratings agencies that an iScotland would have
a poor rating, simply from being unknown. This will lead to higher borrowing costs.
You seem to think I am some idiot who doesn't understand how these things work, but it seems there are plenty here who live in cloud cookoo land with
regards to finances.
Now, if Scotland doesn't get a CU (it probably won't) and it walks from the debt (like Salmond et al have said they would) the ratings agencies have
said Scotland's rating would be junk. Scotland benefits now from the UK's excellent rating - Scotland will not enjoy the same, regardless of a CU
happening or not.
So, coming back to the 8% deficit- how are you going to finance the deficit if you find it hard/costly/impossible to obtain funding?
It's all very well trying to dance around the issue, but at some point you have to face the music.
EDIT: And yes, Scotland will have to "run a catalogue" to build up a credit rating - they have no track record with regards to debt repayment. Yes,
you would be able to sell bonds, but owing to a lower rating, you'll have to issue them at a higher rate, costing more to borrow than it already does.
And running an 8% deficit certainly won't help.
The fact you seem to think Scotland is going to get a AAA rating on Day 1 and full access to the bond market at preferential rates is just
edit on 12/9/14 by stumason because: (no reason given)