HAHA really?

lets hear it mate

the whole child care thing which is currently a devolved power so why is it in this paper? They have the power now to do what they say they will do in this white paper

Plus the whole paper is based on the assumption of using the £, which isn't Scotland's decision as Westminster will be the one that decides that

also there was nothing about the issue of EU and NATO membership

Plus the whole paper is based on the assumption of using the £, which isn't Scotland's decision as Westminster will be the one that decides that  

The No Camps fraudulent argument

So what argument are the No Campaign using to suggest we shouldn’t have an oil fund, now that at last someone has had the common sense to suggest setting up one before its too late?  Well they claim we can’t start one because the UK is in deficit!  Lets be clear – Scotland is only operating a deficit because we are part of the UK.

We have reliable independent and official Scottish Government income and expenditure figures for 32 years which show that without having to pay for debt generated elsewhere in the UK Scotland would be in surplus right now even allowing for our share of the banking bailouts and despite the impact of losing two banks as a result of poor regulation at Westminster. Indeed, it is a credible argument that because there may be no recovering from the UK’s present fiscal position, Scotland will always be in deficit for as long as we are part of the UK.

Let’s imagine for a moment that an independent Scotland does accept its population or GDP per capita share of debts run up by the UK. The No Campaign claim that if Scotland runs a deficit then you can’t save as you are borrowing to save. However, there are several problems with this flawed contention.

1) Scotland is likely to have returned to surplus in the year before it officially becomes independent in 2016. The UK Chancellor George Osborne cant argue with that as he is predicting that the UK as whole will return to surplus in before independence is declared in 2016.

2) As explained above, Scotland’s fiscal position is better than the rUK’s last year by £4.4bn (coincidentally equivalent to 60% of the Scotland nominal deficit) and so Scotland can return to surplus far more quickly than the UK by merit of simply having a far higher GDP per head.

3) The debt that Scotland will inherit from the UK could be structured at approximately 3.0% interest and last year the Norwegian oil fund returned a staggering 14% profit. So do you pay your long term structured debt back at 3.0% or invest for the future at up to 14%?

Equating the national finances to those of an individual or household makes it easier to understand so I’ll have a go.  Many people have long term structured debt at low interest in the shape of a mortgage but they also have savings accounts, sometimes an investment account and usually a pension. How secure a financial future will you have if all your money goes into a mortgage, none into your pension and none into a savings plan?

You know the answer. And that’s exactly the No Campaign’s proposition – put all your money into your mortgage and don’t put anything into a pension or savings.