Voting Yes is like choosing to play Russian Roulette with - TopicsExpress



          

Voting Yes is like choosing to play Russian Roulette with Scotlands finances, except every chamber is loaded. The UK national Debt is £1,377BN over 80% of GDP but because we have a AAAcredit rating it costs us just 3% of our GDP to service. It costs £47BN in interest payments on an annual basis. If we we had a BBB rating it would cost us £60BN. Alex Salmond has consistently claimed that we will have a Currency Union, as the UK need the £5BN Scotland contributes annually towards the UK interest rate payments. He says we have two choices, the first and preferred is: we achieve Independence and a Currency Union with the UK and take on our share of the debt. Scotland has a strong economy and we would almost certainly be rated as Investment Grade- Which would be one of the grades in the table below. We cannot better the UKs AAA- so theres one big positive for saying NO. The most likely grade for a new Country, with a strong economy, would be BBB, which is more than respectable, in fact its very good indeed. Unfortunately it would mean that our debt servicing costs would rise from Mr Salmonds £5BNannually to £6.5BN-- That is £30 Million pounds per week, every week and we get nothing for it. Thats £30 million poundes per week not being spent on Schools, Welfare, NHS. And this is the supposed best solution for Scotland. See below: The general meaning of Standard and Poors credit ratings is summarized below. ‘AAA’—Extremely strong capacity to meet financial commitments. Highest Rating. ‘AA’—Very strong capacity to meet financial commitments. ‘A’—Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances. ‘BBB’—Adequate capacity to meet financial commitments, but more subject to adverse economic conditions. ‘BBB-‘—Considered lowest investment grade by market participants.irst _______________________________________________________________________________________________________________________________________________________________ Mr Salmonds Plan B is keeping the pound come what may without a Currency Union or permission from the UK Government. So called Sterlingisation. He says we will walk away from our debt, as the Bonds were issued by the UK Goverment and are not legally ours. Thie would save us £5BN annually. However, there is a problem. The Investment World would not see it that way and we would be graded as a Speculative economy , one of the Grades below. I will allow you to choose which one you think is most appropriate. It doesnt matter, as in the first two years we are forecasting a deficit of £20BN. No market participants would lend to us, we will be bankrupt, very quickly. We would become a rescue economy. Thats your choices if you vote Yes. There wont be a bean to spend on social justice or hospitals or anything else. Reality hurts.Voting Yes puts the very future of our Country in extreme peril. See below: ‘BB+’—Considered highest speculative grade by market participants. ‘BB’—Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions. ‘B’—More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments. ‘CCC’—Currently vulnerable and dependent on favorable business, financial and economic conditions to meet financial commitments. ‘CC’—Currently highly vulnerable. ‘C’—Currently highly vulnerable obligations and other defined circumstances. ‘D’—Payment default on financial commitments. ________________________________________
Posted on: Mon, 01 Sep 2014 20:24:43 +0000

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