A number of question have been coming in about Scotland. Yes, it has the capacity to become the real Switzerland of Europe where capital would be attracted if they are out of the UK and the EU. Why? The EU is looking to more than just tax financial transactions, they are looking to even outlaw short-selling thinking they can support the Euro and their economy that way. They cannot get it through their heads that if you prevent people from selling, you will prevent people from investing.
Scotland would be entitled to the North Sea Oil. It could actually end up with a surplus budget – one of the few around in the world. It would also be interesting but separating from the UK would disrupt the bond markets for the question would then turn to who get the debt. Traditionally, it belongs to the UK and if Scotland leaves the UK it belongs to England.
This post was published at Armstrong Economics on September 14, 2014.
Follow on Twitter
Recent Comments