Scots who voted for independence showed us the way to go
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By the time this column goes to print, the outcome of the referendum on Scottish independence will likely be known. Still, it's worthwhile discussing the implications and the benefits for Scotland if voters now, or at some time in the future, say "yes" to
In fact, there is nothing to fear for the Scots, who number around 5.3 million and are blessed with abundant natural resources. They have oil and gas, coal, fisheries, beef, water, the sea and other natural resources. If these are managed properly, independent Scots will be among the wealthiest citizens on the planet. Take the case of oil: So far, some 40 billion barrels of oil have been extracted from North Sea wells. That leaves about 24 billion barrels to be exploited over the next 20-30 years. If you were divide that oil wealth equally among the population, each Scot would be entitled to more than 4,528 barrels. At about $100 per barrel, that would be $452,800 per person. And that’s just one resource among many.
The UK government has been warning Scots away from seeking independence. But the threats are a paper tiger – that they would lose the benefits of a stable currency in the pound, the guardian of the financial system in the Bank of England, national defence in the military, oil and gas exploration and production in the UK’s expertise, welfare benefits from the UK government coffers, continuing stability and prosperity within the Union, and so on.
The immediate “threat” frequently cited by the London establishment is loss of stability in the financial system should Scotland break loose. Uncertainty over the outcome of the independence vote has already spurred deposit runs on both Scottish and UK banks. If Scotland were to become independent, its US$260.9-billion economy would not be able to absorb the risks associated with the $2-trillion combined liabilities of the Royal Bank of Scotland and HBOS. How would the credit rating agencies assess the credit worthiness of Scottish government debt? Having the Bank of England safeguard the financial system, and enjoying the depth of the capital and financial markets that the Union offers, would be more advantageous for Scotland.
In fact all these arguments are groundless.
The first and most pressing order of business that Scotland is to downsize the banks so that their scope of operation lies within the risks that they or the country as a whole can absorb. Most countries have been stuck with “too-big-to-fail-banks”, which have extended their balance sheets to get involved in murky transactions that threaten shareholders’ capital and put whole economies at risk of meltdown.
Video blogger Ian R Crane offers a colourful presentation of the issues and possibilities surrounding Scottish independence:
“The people of Scotland have an opportunity to extricate themselves from the socio-psychopathic global corporatists and the temple of outrageous and excessive abject materialism. However, it is not going to be an easy ride.
If Alex Salmond and the SNP [Scottish National Party] are serious about keeping the pound as the currency of Scotland, there will be no independence. Likewise if Scotland embraces the euro, Scotland will rapidly become a vassal state of the euro-federalists, who will asset-strip the nation in the same way that Greece, Ireland, Portugal and Spain have been stripped of their entire national wealth and much of their national identity.”
To achieve true independence, Crane suggests the following, among other mandates:
l Establish an independent central bank of Scotland.
l Issue a new Scottish (debt free) currency.
l Settle any outstanding debt with new Scottish currency.
l Take Scotland out of the EU.
l Take Scotland out of Nato.
l Establish strict currency controls for the first three years of independence.
l Nationalise the Scottish oil and gas industry.
l Retake control of the National Health Service.
l Establish a state employment agency to provide work/training for all able-bodied residents.
These suggestions are also a model for any emerging-market country that wants to develop a stable economy and financial system. They mandate returning control of a state’s natural resources, businesses and industries to its own citizens, rather than letting international corporations and bankers run the show to the detriment of its people’s lives and livelihoods.
