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Brits use Scottish oil as collateral

George Washington's blog:

[A]s Max Keiser explained:

(1) The UK can now borrow cheaply using the giant Scottish oil reserves as collateral

(2) If Scotland leaves, the collateral (oil reserves) is no longer available

(3) So the cost of borrowing money for Britain skyrockets

Scotland’s North Sea oil reserves are slowing running out, and so oil won’t be such a valuable resource forever.

But for now, it is still invaluable (especially as collateral for British borrowing) … and the key to Britain’s panic over potential Scottish independence.

Not a lot of sympathy for British banksters here, and it would be a big plus for Scotland if the garbage barge that is the Royal Bank of Scotland were towed up the Thames and moored there.

NOTE Of course, the Shetlands are where a lot of the oil is, and they might have different views than Scotland proper, whether Yes or No. Complicated!

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CMike's picture
Submitted by CMike on
In addition, as Max Keiser explained:

(1) The UK can now borrow cheaply using the giant Scottish oil reserves as collateral

(2) If Scotland leaves, the collateral (oil reserves) is no longer available

(3) So the cost of borrowing money for Britain skyrockets

Isn't the MMT perspective that with less than full employment a central bank which controls its own currency is not constrained when setting the bond rates of the government it should be serving and, in fact, such a central bank could be financing some amount of national expenditures with key strokes all the while? What would a fundamental like oil reserves have to do with it?

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