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Sancho Panza

Bank Of England Would Be Lender Of Last Resort For An Independent Scotland, Says Snp White Paper

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Telegraph 27/11/13

'Taxpayers in the rest of Britain would be forced to bail out Scottish banks in the event of future crises, under independence plans published on Tuesday. The Bank of England would become the lender of last resort for an independent Scotland, the Scottish Nationalist Party announced in its long-awaited White Paper.

As a result, both Lloyds Banking Group and the Royal Bank of Scotland, both domiciled in Edinburgh, could theoretically call on support from taxpayers in England, Wales and Northern Ireland, even if Scotland were to go it alone.'

Edited by Sancho Panza

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The squid will be able to advise how to get loads of off balance sheet debt to fund a lavish lifestyle.

Spend years bragging about being a tiger economy then it's bailout time.

"Theoretically call on support"? - at some stage isn't it a cast iron certainty. A central bank and own currency would be best.

Edited by billybong

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And Scotland will continue to use the English Pound.

Right... :lol:

Ah yes - it is so convenient when shared assets quietly get appropriated by the dominant partner isn't it?

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Seems Salmond has looked to club med and liked what he has seen...

Keeping the £££ he can demand terms from the BOE for his forthcoming bailout and not have to worry about the punishing austerity terms.

After all that pretty much what they currently get!!

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Surely it is up to the UK Government whether the BoE would be the lender of last resort for Scotland; I seriously can't see that being the case if Scotland doesn't share it's assets (north sea oil).

If the BoE is not the LOLR for Scotland, then Scotland would suddenly be forced to run a balanced budget, or actually go bankrupt if they don't.

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Surely it is up to the UK Government whether the BoE would be the lender of last resort for Scotland; I seriously can't see that being the case if Scotland doesn't share it's assets (north sea oil).

If the BoE is not the LOLR for Scotland, then Scotland would suddenly be forced to run a balanced budget, or actually go bankrupt if they don't.

Is running a balanced budget a bad thing for a country?

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Can't help but think people are looking down the wrong end of the telescope with all this.

What's really needed is for everyone (Scots, North/Mids etc) to seceed from City of London/Parliament.

Rest of UK suffers from the same problem of 10% of population dictating terms to the other 90%, solution isn't to leave UK it's for UK to leave London.

The reason why London don't want this is 'cause the City would have nobody to lay their bad debts off on. Imagine 2008 without 60m other people paying off the bankrupt banks. City would still be bust, Queen's savings would have gone up in smoke, their multimillion pound homes would have collapsed etc etc.

UK only wants independence for other countries, never for its own 'provinces' else they would lose all their power and wealth in an instant.

Edited by R K

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Is running a balanced budget a bad thing for a country?

Of course not, but I cannot see any politician being capable of it!

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Seems Salmond has looked to club med and liked what he has seen...

I think he's looked to Germany and liked what he's seen - trade surplus in a currency union OR tell London to piss off while repudiating the debt (including the banks, which are really London entities).

London loses either way.

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Scotland obviously looked to the EU and saw how successfully ceding your sovereignty and moving to being the weak partner in a currency you didn't have full control of can work out.

Edited by terryturbojr

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Ah yes - it is so convenient when shared assets quietly get appropriated by the dominant partner isn't it?

Scotland abandoned its currency upon union. The Pound is English.

However, its not an asset. Its a guarantee to pay, whoever guarantees it owns it.

The UK is not going to guarantee a Scottish currency or Scottish banks, there is no chance of that.

Edited by Peter Hun

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