Oil Fund

[wavy davy]

I rarely read Rob Gibson’s ‘Holyrood Diary’ in the Groat. It’s primarily a platform for SNP rhetoric, rather than reportage of the goings-on at Holyrood, which might be marginally more interesting.

However, this week my eye was drawn to the headline ‘Oil Fund would underwrite an independent Scotland’s future’. The Nats acknowledge that an independent Scotland would run at a fiscal deficit so I was interested to read how they would finance an Oil Fund.

It’s easy, they borrow the money. They would, Gibson says ‘....make early investments into an oil fund whilst in deficit....’

Smoke and mirrors – or am I missing something?

[Shaggy]

http://www.scotland.gov.uk/Publications/2009/07/28112701/0

All the smoke and mirrors you'll ever need!

[wavy davy]

You can't see the mirrors (clever bits) for the smoke (just smoke). Sad innit.

[weezer 316]

It's a compete non-starter. Borrow money (pay the ineterest) to save money, now a mainstream SNP position, all the while still being in deficit.

Utter lunacy. Imagine westminster decided to bank the proceeds of the city of london for a rainy day while we borrow money. The SNP nutters would go utterly butterly.

[macadamia]

They used to make fun of squaddies when they were first issued with cheque books, and one or two "clever" guys tried to make out cheques to themselves to get some money when they'd run out. Also, it doesn't take Einstein to tell you the way of the world is that you pay more for borrowing than you ever get from saving, unless you're a brilliant American pork belly futures hedge fund advisor or a simple crook.

Or indeed, a politician, who really believes you can borrow your way into a surplus.

A free unicorn in every pot, and a double helping of gold to all citizens!

[sam09]

Have a look here for U.K Govenment debt : www.debtbombshell.com/‎ and give us your comments.

[orkneycadian]

And just in case the UK figures are not scary enough for you, try the US one...

http://www.usdebtclock.org/

[wavy davy]

Sorry Sam09 and orkneycadian, Those figures are horrific, but I'm missing your point.

[joxville]

Have a look here for U.K Govenment debt : www.debtbombshell.com/‎ and give us your comments.Couldn't we reduce the debt by reclaiming the PPI paid out on it? ;-)

[orkneycadian]

One point that you should bear in mind, especially visible on the US clock, is the vast gulf between the widely reported $17 trillion of debt that everyone thinks is bad enough, and the $126 trillion of unfunded liabilities that no-one likes to mention.

Bear that in mind when anyone tells you what the UK's, or even Scotlands debt is...

[sam09]

At least any borrowing would be kept at a minimum and only used for Scotlands benefit. Nearly every government borrows. Who is it that says Scotland will run at a defecit? The skill is, to manage your income and only borrow what you can afford to pay back within your means.

A budget for Scotland will mean just that, a budget for Scotland and like any new economy will have to learn by its successes and mistakes. At least it will be for the benefit for the people of Scotland.

[weezer 316]

At least any borrowing would be kept at a minimum and only used for Scotlands benefit. Nearly every government borrows. Who is it that says Scotland will run at a defecit? The skill is, to manage your income and only borrow what you can afford to pay back within your means.

A budget for Scotland will mean just that, a budget for Scotland and like any new economy will have to learn by its successes and mistakes. At least it will be for the benefit for the people of Scotland.

Lol! Sam my friend........Sam.....come sit down, please.

"At least any borrowing would be kept at a minimum and only used for Scotlands benefit" - Almost all of our borrowing has been done to sustain social programs. Scotland benefots from this. Furthermore, and this is the tricky part for folk like you, most of out trouble was caused by labour who won 3 general elections in a row. Scotland, overwhlmingly, voted for them each time. Labour didnt hide that they were going to borrow hugely, especially from 2001 onwards, and we voted for it. We are therefore more implicated than most.

Secondly, this "borrowing" will be done using British pounds, a currency we dont control and cant print. If your unaware of the humongous issue this poses then I suggest you delete your account and start reading about the Eurozone for the past 5 years.

[sam09]

weezle you my friend are a stupid ignoramous. You are deluded in your veiws and seem to think you know more than others more educated than yourself. Succesive Westminster governments have squandered the income from oil no more than Maggie Thatcher did whilst in power. You say "this borrowing will be done in British pounds" That is Mr. Salmonds idea. Who is to say which party will be elected after a yes vote and what their choice of currency will be? If Scotland is to stay or indeed have to re-apply to join the E.U. we may be forced to join the Euro. Although I agree it would be foolish to retain the pound sterling as it would be tatamount to letting the Bank of England run our (Scotlands) economy.

Do your parents still handle your finances weezle or are you grown up enough to handle your own yet? Do not you silly person presume that you know which way I voted in the past or which way I will vote in the future.