Can An Independent Scotland Become Prosperous?
Cam Hui | Sep 14, 2014 12:47AM ET
For your consideration as we approach the weekend: As we approach the Scottish Referendum on September 18, there have been lots of stories of the negative repercussions of a Yes vote. I had written from a Canadian's perspective about how a Scottish-UK currency union Lossiemouth , etc., why not negotiate leases for basing rights with rUK? Such a move would instantly transform those military assets from cost centers to profit centers.
In fact, a neutral Scotland could put the leases at its major bases such as Lossiemouth (air base) and Faslane (Trident) up for bids. What would the Russian navy pay for basing rights at Faslane? It would a Russian military planner`s dream. Russian SSBNs in the North Sea would give Moscow the option of launching a decapitation strike to take out the leadership in European capitals and NATO headquarters with little or no warning.
Notwithstanding the uproar in Westminster, how would Washington react (and pay) to avoid Su-27 squadrons at Lossiemouth and Russian ballistic missile subs roaming freely in the Atlantic and the North Sea?
I had suggested that there was a geopolitical risk element to the Greek crisis in 2011 (see planting stories like Economic Benefits of Faslane Nuclear Base in Scotland “Overplayed” - Official. What comes next? After all, are we not all good capitalists now?
While what I have outlined is tongue in cheek and fantasy (worthy of ZH), it nevertheless does illustrate the point that if an independent Scotland gets pushed too far economically, the gloves could come off and anything can happen.
Disclosure: Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.
None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions. Past performance is not indicative of future results. Either Qwest or Mr. Hui may hold or control long or short positions in the securities or instruments mentioned.
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