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28 January 2012

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Gordon Kirk

A couple of things unsaid.

Firstly the independent Scotland would, by dint of population share, start the negotiations owning some 8.4% (of the shares?) of the Bank of England. That being both the share of assets and liabilities, share of gross profit and costs. The independence negotiations could change that up or down but they could not, in law, be taken from Scotland without consent.

Secondly, the existing "lender of last resort" arrangements for banks in relation to "overnight" lending used to be (not now sure) 1.5 times the worst rate which prevailed at any time during the trading day. Not infrequently that would equate to over 500% p.a. Unlikely that any finance department would welcome that (if that's still the arrangement).

For the first 254 years of its existence the Bank of England was not owned by the state and yet exercised "central bank" functions, it is not inconceivable that the Con/Dem government might extend the powers delegated in relation to interest rates by Labour to once again cover a much broader canvass and raise money from new owners. Osborne is fit for anything.

cynicalHighlander

Another 'red herring' article and to link it with AD who was part of the last government who had abolished 'Boom and Bust' in their disillusioned governance of the UK finances creating the biggest bust in its history as being creditable beggars belief.

As an aside one can only assume that the author is a fan of the continuing colonialist ruling of Scotland by Westminster.

http://www.bbc.co.uk/iplayer/episode/b01bbf9l/Newsweek_Scotland_28_01_2012/

Robert Peffers

More scare stories that have bo basis in truth. Keep up the good work, more such will assure the voters go for independence.
We are aware that the United Kingdom Government nationalised the Bank of England, that Brown then made it independent, that as there were only two signatories on the Treaty Of Union that created the Parliament of the United Kingdom, then on Independence day the Union ceases to be. AS it is not an Elected English Parliament, there will be no legal English Parliament and no Legal Union Parliament - who is going to stop the BofE doing what it is told by the Scottish Government, who after all have paid a portion of the costs of the bank when it was the State bank.

Don't try to scare the Scots. Remember the boy who cried, "Wolf"?

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