Banking on success.

06 Jun

Ho Hum… a couple of days of sunshine and then back to grey and wet. What fun. Poor old Philip ended up in hospital following an extended period of standing in the cold on a boat in the middle of the Thames. Although, every cloud and silver lining all that, it could have been worse, he could have had to attend the concert at the palace and have to listen to Cheryl Cole once again demonstrating that she can’t sing a note never mind a song and the same for Will.I.Am.

But I digress. The thrust of todays post is independence, that’s Scottish Independence. Our wee pal Alex has clarified a point, which could be of vital interest and play a major part in a new Scotland following a resounding independence yes vote. We are to keep the pound, the English pound, the one in your pocket, the one you spend too many off, the one that politicians spend in such copious amounts that we would rise up and rebel if we knew the full extent of what they borrow and what they waste.

Anyone with half a brain is keeping a weathered eye on the Eurozone at the moment. Not content for the economies of Ireland, Portugal, Greece, Italy, Spain and Cyprus to crash and burn, the Eurozone will push more Eurozone countries in to follow suit. It’s inevitable. The differences between the various countries economies make it so. The imbalance between the economies of Germany and Greece is ludicrous. For Greece to need the same sort of fiscal management approach to that of Germany isn’t just silly, it’s ludicrous and damaging. It generates imbalance and feeds on it’s own failures.

Would this have happened if the Eurozone countries had stuck to their original rules of being right economically? Probably but then there would have been far fewer countries joining up. It would have taken forever to get everyone aligned correctly and fiscally, not to mention politically.

I mention this because Scotland using the English pound could well end up the same way. A country ten time bigger making the fiscal policies for a country ten times smaller. And this would be independence? Getting one seat on the Bank of England’s Monetary Policy Committee (MPC) is in someway going to help the cause of a new Scotland? The nine other members are not going to be particularly keen on Scotland’s cause. They may well take exception to Scotland performing badly and the effect this might have on the English pound.

Why keep the English pound? Apparently it’s tradable, so how do all the other small countries manage? Iceland, Norway, Denmark etc. They are established. Yes but what about Iceland? I’d suggest their model looks very promising. Their banks failed and they’ve made a good job of sorting things out. They did what was best for Iceland. The didn’t throw money at the banks

They threw money at their people, they cancelled mortgage debt, they defined a new constitution with heavy involvement form their people.

I can’t help but compare the arguments the Westminster Parliament has with the EU and Eurozone to the same things that the SNP say. England want more say in their own affairs, they want to maintain their independence and retain the pound, they want to control their own economy, they want to protect their biggest and most successful business sector from those who want to get their hands to it. Oh the irony of it.

Maybe the SNP have suddenly woken up to the realities of independence? Maybe that’s why they are looking less vital and less confident? It would be a giant step, a bigger step than it was to joining the union in the first place. It’s a bit scary, it’s a step into the unknown and it’s a huge risk. But so is remaining within the UK and within the EU.

We will NEVER address the poverty, the lack of good quality jobs and the development of robust and diverse economy unless we are in control of our own destiny.


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