British Government Publishes UK, Scotland DevoMax Smith Report Suicide Note
Politics / UK Politics Nov 28, 2014 - 09:47 AM GMTBy: Nadeem_Walayat
The consequences of the panicking Westminister politicians making unlimited promises of DevoMax in the last days of the Scottish Independence Referendum campaign that sowed the seeds for the destruction of the United Kingdom have now started to become manifest in the Smith report that details the transfer of tax and spending powers to the Scottish Parliament which will amount to approx 50% of governance that would still be coupled with a NET subsidy to Scotland of approx £9 billion per year to be born by predominantly England's Wage slaves where now the Scottish parliament will also be allowed to print billions in debt without inflation or interest rates consequences as the debt will be underwritten by the United Kingdom that sows the seeds for stealth destruction of the United Kingdom as Scotland effectively sucks dry the financial blood of the United Kingdom. Furthermore the whole basis of the SNP argument of an Independant Scotland living off of North Sea Oil has already gone up in smoke following the collapse in crude oil prices!
Key New Scottish Powers
- Total control over income tax - set income tax rates and bands.
- All income tax raised in Scotland stays in Scotland.
- Powers over other taxes such as VAT
- Amend existing and introduce new benefits
- UK Barnett Formula block grant subsidy to Scotland to continue.
- Scotland to be allowed to borrow money in UK / England's name.
- Power over a whole host of regulations such as motoring.
Delusional Scottish Nationalists who keep forgetting that Scotland voted NO to independence, response was as expected to claim that it was Scotland's right to both have ever greater powers all the way towards FULL independence but coupled with a continuation of the Barnett formula block grant that soon will be coupled with the ability of the Scottish parliament to borrow money (print debt) that would be underwritten by the United Kingdom and therefore results in the financial blood being systematically sucked out of England before the Scottish Parliament declares itself independant that risks leaving behind a hollow husk as Scotland will have succeeded in effectively stealing much of the wealth of the United Kingdom by means of printing tens of billions in additional debt on top of the £125 billion of Scottish debt that the UK is already saddled with, something that Scotland could never have done if Scotland were independant as I have often warned the consequences -
29 Sep 2014 - UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over!
The Damage Has Been Done
My series of articles whilst warning of the catastrophic consequences for scottish independence also warned that the damage had been done in that Britain was now been destabilised and may yet break apart.
Whilst a NO vote will prevent the United Kingdom from immediately disintegrating, unfortunately the damage has been done by the three westminister clowns who have promised DevoMax to Scotland which means England's wage slaves will be forced to pay even higher taxes for Scotland's socialists to squander on a bloated public sector and a whole host of freebies that would likely add another £500 on per capita spending to the current subsidy of £1600 per head (£1730 full account).
Source ONS
The bottom line is that there is going to be a day of reckoning for the Westminister clowns as England is no longer going to put up with the current gross inequality between the UK's four countries and will demand equity, a fair share, and devolved powers which means an end to Scotland, Wales and Northern Ireland's subsidies, which ironically means it will be the English who will END the United Kingdom but on their terms and not on today's Scottish Independence blackmail.
Unfortunately nothing will satisfy scottish independence fanatics other than the destruction of the United Kingdom, it does not matter even if Westminister politicians doubled the annual billions in bribes the cost of which to be born by English wage slaves for the tunnel vision fanatics will do what all fanatics tend to do which is to destroy that which they most profess to love. Therefore, as I have often voiced that the rest of the UK, England needs to take urgent action to protect itself from a Scotland that is determined to commit suicide else the UK, England will go down the same route and start to literally disintegrate into fragmented competing regions.
29 Sep 2014 - UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over!
The bottom line is that Britain has been seriously damaged, it remains to be seen the degree of damage as it manifests itself in the financial markets and economy as there is no workable solution to the West Lothian question as all of the proposed solutions result in a worsening outcome, where eventually the only workable solution I see will be to eject an ever more greedy and disruptive Scotland from the UK that will probably happen within the next 5 years.
Concluding UK / Scotland Long-term Forecasts
1. That Westminister will fail to deliver on any significant Scottish DevoMax due to the instability it will bring to the rest of the UK demanding similar powers.
2. That there will be no significant devolution in England, no English assemblies or English Parliament.
3. An outraged Scotland will increasingly demand a second referendum that would be agreed to within the next 3 years or that the Scottish parliament may just declare Independence without an referendum.
4. That Scotland will become independent within 5 years and that it will wreck havoc with the Scottish economy and social fabric of the border lands.
5. That the markets will start to heavily DISCOUNT Scottish Independence probably starting just after the May 2015 general election which will manifest itself in a relatively weaker sterling currency and much higher inflation that will average at least TWICE the inflation rate of the past 5 years i.e. At least 4% per annum with spikes of double that rate. Whilst Scotland will increasingly see businesses relocating south of the border.
6. That Northern Ireland, Wales and places such as Cornwall will see the catastrophe taking place in Scotland and put their own secession movements on hold for decades as they realise that they are far better off within the United Kingdom.
7. That within 2 years of gaining independence parts of Scotland will demand that they are allowed to rejoin the far more stable United Kingdom.
As things stand Scotland gets everything it wants in terms of spending but the bill is not being born by Scottish tax payers but English tax payers, a huge injustice that Westminister politicians will pay a heavy price for at the May 2015 General Election as voters in disgust to this and continuing out of control immigration turn to parties such as UKIP.
Source and Comments: http://www.marketoracle.co.uk/Article48400.html
By Nadeem Walayat
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Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
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