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Scotland Won't Keep Uk's Aaa Rating If It Gains Independence, Says Fitch


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#1 South Lorne

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Posted 24 April 2012 - 11:39 PM

http://www.telegraph.co.uk/finance/economics/9224182/Scotland-wont-keep-UKs-AAA-rating-if-it-gains-independence-says-Fitch.html

'Although the precise division of UK assets and liabilities has not yet been established by the Scottish Nationalists, Fitch told the Treasury Select Committee that the lack of a repayment track record could scupper Edinburgh's chances of inheriting the UK's rating.

Under sustained questioning from Michael Fallon, MP for Sevenoaks, the director of Fitch, David Riley, said: "I am not aware of any situation where we have awarded AAA rating to a newly independent sovereign nation."

The directors from Fitch, Standard & Poor's and Moody's were being grilled over their decisions to downgrade sovereign ratings, some of which have triggered turmoil in the stockmarkets. In a sometimes heated meeting, during which Bury MP David Ruffley stormed out, the agencies denied the downgrades were "marketing" decisions made to grab headlines.

Moritz Kramer, head of sovereigns at S&P, insisted his company's decision to strip America of its AAA rating last summer was not a "mistake", even though the yield on US Treasury bonds has fallen by a fifth since then.

Asked if it were really his "belief that the US's desire and capacity to repay its debts was lower than [the AAA-rated] Finland," Mr Kramer said: "I do." He said compared with Finland, America's debt ratio was higher, its debt trajectory worse, and its political policies for debt reduction less coherent. '




oh joy.Does that mean we get to keep them? :D


...no joy if you would like to get rid of their Labour MPs from Westminster..... :rolleyes:
The market goes up. The market goes down. It is all about timing. (unless it's rigged)

#2 billybong

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Posted 24 April 2012 - 11:49 PM

"I am not aware of any situation where we have awarded AAA rating to a newly independent sovereign nation."


A "newly independent sovereign nation".

Yeah right :lol:

That's just a total laugh if they don't have their own currency - and control over it.

Give me control of a nation's money and I care not who makes her laws.



#3 South Lorne

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Posted 24 April 2012 - 11:56 PM

A "newly independent sovereign nation".

Yeah right :lol:

That's just a total laugh if they don't have their own currency - and control over it.


...it could be a change from GBP to SPP..Scottish Petro Pound.... :rolleyes:
The market goes up. The market goes down. It is all about timing. (unless it's rigged)

#4 mfs1959

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Posted 24 April 2012 - 11:57 PM

A "newly independent sovereign nation".

Yeah right :lol:

That's just a total laugh if they don't have their own currency - and control over it.


But they will have their own money, the pound sterling. And they'll have control since Nicola Sturgeon said Scotland would expect to appoint a member to the MPC.

On the other hand, given the remit under which the MPC works, you're right.

#5 South Lorne

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Posted 25 April 2012 - 12:07 AM

But they will have their own money, the pound sterling. And they'll have control since Nicola Sturgeon said Scotland would expect to appoint a member to the MPC.

On the other hand, given the remit under which the MPC works, you're right.


...funny kind of independence she's after ...one with a parachute held with strings....typical....she's a joker..... :rolleyes:
The market goes up. The market goes down. It is all about timing. (unless it's rigged)

#6 billybong

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Posted 25 April 2012 - 12:17 AM

But they will have their own money, the pound sterling. And they'll have control since Nicola Sturgeon said Scotland would expect to appoint a member to the MPC.

On the other hand, given the remit under which the MPC works, you're right.


In the euro zone Greece has ECB representation - look what's happening to Greece.

They're currently pushing it around from pillar to post.

#7 Democorruptcy

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Posted 25 April 2012 - 06:50 AM

They print Scottish notes so why can't they have a Triple AAA?

Surely this ability to print means they can buy their own debt and so be a permanent safe haven?

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses. 

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people


#8 The Ayatollah Buggeri

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Posted 25 April 2012 - 07:00 AM

They print Scottish notes so why can't they have a Triple AAA?

Surely this ability to print means they can buy their own debt and so be a permanent safe haven?


If they were totally independent, they would not have the ability to print another country's currency. So either they'd have to use the GBP with the BoE controlling the money supply and the Scots having no say over it (as with Panama and the USD), join the euro (ditto, although in that scenario they'd have a small say in monetary policy decisions) or launch their own currency.

#9 AThirdWay

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Posted 25 April 2012 - 08:46 AM

An independant Scotland, in it's formative years, wouldn't give a flying fox what these jokers rated us at. The downgrading of the US being case in point. Did the markets care? Not a jot!

We've got a few years as an oil exporter to see us through. Should give us enough time to create a tax structure that manufacturing industries like....

#10 Democorruptcy

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Posted 25 April 2012 - 08:48 AM

If they were totally independent, they would not have the ability to print another country's currency. So either they'd have to use the GBP with the BoE controlling the money supply and the Scots having no say over it (as with Panama and the USD), join the euro (ditto, although in that scenario they'd have a small say in monetary policy decisions) or launch their own currency.


It's launch their own currency then they can print and be a triple AAA safe haven like us.

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses. 

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people


#11 cashinmattress

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Posted 25 April 2012 - 08:52 AM

What the heck difference does it make to anybody? Why all the Scotland bashing on this forum about house prices?

An independent Scotland would only mean a virtual border, not unlike it is now, and the rest of you could get on with your equally wretched lives here on this tiny exhausted continent.

#12 AThirdWay

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Posted 25 April 2012 - 08:54 AM

What the heck difference does it make to anybody? Why all the Scotland bashing on this forum about house prices?

An independent Scotland would only mean a virtual border, not unlike it is now, and the rest of you could get on with your equally wretched lives here on this tiny exhausted continent.


Misery loves company :lol:

#13 Peter Hun

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Posted 25 April 2012 - 09:05 AM

What the heck difference does it make to anybody? Why all the Scotland bashing on this forum about house prices?

An independent Scotland would only mean a virtual border, not unlike it is now, and the rest of you could get on with your equally wretched lives here on this tiny exhausted continent.



It would cut down English taxes and help the economy, so its relevant. Plus, its fun to bash the Independence movement as they demonstrate fiscal naivety on par with HPI.

An independant Scotland, in it's formative years, wouldn't give a flying fox what these jokers rated us at. The downgrading of the US being case in point. Did the markets care? Not a jot!


Case in point, the delusion that a socialist country of five million is as stable and comparable to a capitalist economy 100 time bigger.

Try a comparison with Panama instead

Edited by Peter Hun, 25 April 2012 - 09:08 AM.


#14 cashinmattress

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Posted 25 April 2012 - 09:06 AM

It would cut down English taxes and help the economy, so its relevant. Plus, its fun to bash the Independence movement as they demonstrate fiscal naivety on par with HPI.


I don't think you know what you're talking about, and your sentiment is biased to the point of bigotry I'd hazard.

Mods, put into current affairs please.

#15 Democorruptcy

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Posted 25 April 2012 - 09:06 AM

What the heck difference does it make to anybody? Why all the Scotland bashing on this forum about house prices?

An independent Scotland would only mean a virtual border, not unlike it is now, and the rest of you could get on with your equally wretched lives here on this tiny exhausted continent.


I didn't think this was a Scotland bashing thread. I think you might get more now though.

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses. 

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people





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