SCOTTISH NATIONAL DEBT WOULD FORCE SPENDING CUTS OR TAXES RISES, OR BOTH This has been said time and time again, but it still needs to be said even more, despite a majority of Scots realising that separation will make Scotland less prosperous, or worse, poorer. Why these constraints? Because Scotlands inherited debt from the U.K. would be a very significant proportion of its national income, meaning that interest on the debt would be one of the SNP governments largest items of spending. And probably in a few years its largest. Its made worse because the interest a separate Scotland would pay would be higher than the interest the U.K pays. Britains credit rating will be much better than a separate Scotlands And if Salmond ever carries out his threat to renege on paying the U.K., there may be no loans at all, or they would cost even more. (Higher interest yet again). This interest rate is a major determinant of all others, including Scottish mortgages, personal loans and business loans. But before all this comes out of the washing machine, you need a currency. Oh dear. telegraph.co.uk/news/uknews/10929044/Independent-Scotlands-debt-would-force-spending-cuts-or-tax-rises.html
Posted on: Fri, 27 Jun 2014 05:16:26 +0000
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