Salmond "We can take Scotland in two weeks"

[BrilloPad]

Even in the best case scenario, there is zero chance of that. AAA means it's virtually impossible that a country would renege on it's commitment in the short or medium term - and to do that, it needs to build up decades of reputation of paying all it's commitments on time.

Just Salmond's threat to renege of the share of the UK debt will bring it down a few notches - even if they don't follow through on it, because investors can't have the rock solid confidence of AAA.

And yes, reneging on the share of the UK debt is almost certain to be regarded as a default by credit reference agencies. A default isn't just a failure to pay government bonds, but failure to make any reasonable obligation. The US were threatened with default just because they might have paid some pensions late.

Whether they get AAA or not who cares. Iceland was able to borrow in 2010 - just 2 years after going bust.

Well the banks had loads of printed money to habd out - you didn't actually expect them to get the economy going did you?

[minestrone]

This is the SNPs official line on a Scottish deficit which they constantly repeat. You can check the figures that I posted above.



Truly frightening that they can get away with saying this over and over and that so many people believe it.

[centurian]

Again Business for socitland cannot be trusted, they don't link to the report as it says something quite different, the FT gives a more honest appraisal...

It's worse than that. S&P never said Scotland would be AAA. Read the actual quote that BfS have lifted out of the report.

[QUOTE]benefit from all the attributes of an investment-grade sovereign credit[\QUOTE]

"Investment grade" and "AAA" are not interchangeable terms - not by a country mile. Here are some countries with "investment grade" credit rating.

Iceland
Uruguay
Romania
Russia
India
Namibia

And that assumes they don't default on the debt.

Business for Scotland (not S&P) justify that Scotland "could" be AAA - simply because it meets one of the many metrics required.

Much like I "could" win a Nobel Prize on the basis I meet one of the criteria (I am a living person).

[scooterscot]

Even in the best case scenario, there is zero chance of that. AAA means it's virtually impossible that a country would renege on it's commitment in the short or medium term - and to do that, it needs to build up decades of reputation of paying all it's commitments on time.

Scotland has much wealth in both resource and capability. The world knows that. In either case it's quite unlikely Scotland would be saddled with debt like the UK.

[shaunbhoy]

Truly frightening that they can get away with saying this over and over and that so many people believe it.

The frightening bit is not that they get away with saying it. The frightening bit is, firstly, that there are such large numbers that DO believe it and, secondly, that those muppets are actually allowed to vote on it.

[BrilloPad]

Scotland has much wealth in both resource and capability. The world knows that. In either case it's quite unlikely Scotland would be saddled with debt like the UK.

They used to. More recently all their energy has been channeled into whining.

Hopefully they will FO soon then they might have to use what they have got to survive.

[scooterscot]

Well the banks had loads of printed money to habd out - you didn't actually expect them to get the economy going did you?

WHS+1

[minestrone]

Whether they get AAA or not who cares. Iceland was able to borrow in 2010 - just 2 years after going bust.

Well the banks had loads of printed money to habd out - you didn't actually expect them to get the economy going did you?

Until 2008 Iceland usually ran at a surplus, they are running at a 1.7% deficit right now.

Scotland is running at 8.3% just now and that will go up as we lose business and oil revenue drops.

Scotland does not have as strong an economy as Iceland.

[scooterscot]

They used to. More recently all their energy has been channeled into whining.

Hopefully they will FO soon then they might have to use what they have got to survive.

And if Scotland becomes like the Norway of those isles? High taxes, much wealth, amazing standard of living, it's going to put some pressure on those living in the south.

[shaunbhoy]

And if Scotland becomes like the Norway of those isles? High taxes, much wealth, amazing standard of living, it's going to put some pressure on those living in the south.

Oh yes, that is a real vote winner!! Where do I sign up for high taxes and a pint of beer at £5+ ?