Showing posts with label credit crunch. Show all posts
Showing posts with label credit crunch. Show all posts

Sunday, October 4, 2009

What the Irish Result Means for Scotland & England

With the YES vote in Ireland and European Union integration back to full steam ahead, we are quite possibly living through the last days of UK sovereignty. Interestingly enough though, during these momentous times many UK nationalists can still be heard to argue that even though the UK should be independent from the EU, that Scotland should not from the UK.

The irony of this should not be lost on Scots.

England’s Future in the EU
The UK nationalist argument is that on the one hand Scottish nationalism is narrow-minded, parochial and a recent construction of the SNP, but that UK nationalism is ancient and noble and somehow the way things ought to be, despite it being entirely a creation of the years since 1707. The key to understanding this thinking is that most anti-EU UK nationalist arguments are in fact borrowed from Tory ideas of Englishness, and that almost all the UK’s anti-EU groups are also English. Englishmen are in effect trying to intellectualise what is in reality a visceral aversion to their absorption of English national identity into the EU international soup.




What will the Lisbon Treaty mean for the UK as it stands? If you want an idea of what will happen if Project EU is completed, look no further than Scotland’s history within the UK. The parallels with the UK's coming absorption into the EU collective are striking.

For some time before Union happened for Scotland, there was a loose form of union in place (regal Union in 1603). This generated much conflict with England, and serious doubts from both nations about whether to take it further. Then Scotland suffered from a financial disaster that almost bankrupted the country - the fallout of the failed Darien Expeditions in the late 1690s.

Sound familiar?

Eventually, after much heated debate and venting of spleens, England offered to compensate Scotland in return for incorporating union. The Scottish common people were utterly against it. Then a massive English campaign of pamphlets and propaganda was launched to get it over the line.

Sound familiar?

Daniel Defoe was an English agent in Scotland at the time and a key player. England spent big to bribe Scotland's political elites and, in the end, most of those who were against it changed their minds. Scotland was sold out and the Scottish parliament voted itself out of existence.

Full incorporating Union was then finally enacted, without a referendum, and against the wishes of the Scottish people. How do we know this was the case? The result was rioting in the streets of several Scottish cities.

Scotland’s sovereignty was lost but her national identity persisted stubbornly throughout the Union, during which time her political elites and much of her population threw their weight behind the British Imperial project which, as many Englishmen will admit, was heavily influenced by the Scots. In the 300 years since, Scotland was transformed beyond recognition as hundreds of thousands of Scots scattered themselves across the Empire as soldiers, governors, settlers and merchants. She entered the Union with a fifth of England’s population, and is threatening to leave with barely a tenth.

Her people helped found and populate many of the nations that grew out of the Empire. Conversely, most of her land at home is today under foreign ownership. That is the nature of junior partnership in an empire.

What does this mean for England? Her population stands today at 51.7 million, barely more than a tenth of the population of Europe. With this in mind, the question on the lips of many Englishmen is this: once we have lost our sovereignty, will our island location be enough to preserve what’s left of England’s national identity in a teaming sea of 499 million Europeans, or is our population destined for dilution and depletion as the English are scattered throughout Europe, and European migrants pour in?


Scotland and the EU
In Scotland, many Scots may be sorely tempted to say, “see how you like your own medicine”, but for us the baton change from Westminster to Brussels would be fairly straightforward. It will be something for which 300 years of union with England has prepared us. In reality, we are already part of the EU labour market, while receiving none of the benefits of direct membership. But will full membership of the EU be the best arrangement for an ‘independent’ Scotland?

Will it be a case of ‘out of the frying pan, into the fire’?

Personally, after independence I would prefer a transition period of about twenty years to get our house in order and enter Europe on our own terms - if ever, instead of joining as an oil-rich-but-penniless escapee from the financial basket case that is Britain today. Norway’s associate membership via the EEA and EFTA has allowed it to opt into European programs on its own terms, and – through its massive oil revenues – to build a $400billion sovereign fund, giving it one of the hardest currencies in the world (as the UK Govt predicted 35 years ago would happen in Scotland after independence) instead of propping up the Euro.

This is probably the best path for Scotland.

Unfortunately, from where we stand I don’t think EEA membership is something that can be sold to a cautious Scottish public, in whose collective mind the act of breaking away from London will be difficult enough, and for whom the idea of Brussels acts as a safety net. In other words, if we want to get Scottish independence over the line, the SNP policy of independence-in-Europe is the most likely way it will succeed.

Independence-in-Europe has long been SNP policy, and although I’ve recently had my reservations, I now realise that these will only play into the hands of those who wish to keep Scotland in the UK. Make no mistake: for those Scots unsure of independence, cold feet about the EU will not lead them to choose the alternative model of EEA/EFTA-style of Norwegian nationhood.

It will keep us locked in this godforsaken Union.

Europe may have its problems but, as the expenses scandal has clearly shown, these issues are dwarfed by the systemic venality of Westminster and Whitehall. And the suggestion of Tony Blair as EU president should be seen for what it is: a distraction. Removing the corrupting influence of London’s tentacles from Scotland should remain our top priority and can only be a Good Thing.

If the last few weeks of Irish referendum coverage have taught us anything, it’s that most EU scaremongering in the UK has been by disaffected English Tories and the English Tory media, watching as the last vestiges of their national identity – dressed up as the UK – disappear.

That same UK sovereignty has allowed the British parliament to control Scotland since 1707 and, not to put too fine a point on it, the game is up.

So it’s important for Scots not to be taken in by English Tory protests at the loss of UK nationality to the EU. As part of the UK, Scots have no nationality to lose. We already lost that three hundred years ago, and now it's time to take it back.

Norway offers us the model, but even direct membership of the EU is more than what we've got now, which is nothing.

Sunday, May 24, 2009

Scotland Independent by 1950


What would Scotland be like today if the Home Rule Bill had been passed on its second reading in 1913? It was a very close thing, only prevented by the outbreak of the carnage of the Great War.(1) If Home Rule had happened then - rather than 85 years later in 1998 - it is safe to assume that independence would have followed within forty years, say by 1948, fifty years before devolution was grudgingly granted.


Comparing the history of Scotland to that of independent European states over the past sixty years, what follows is an attempt to construct what an independent Scotland's history would have been, had this happened.

1. Scotland declares independence in 1948, a year after India. The general feeling in both England and Scotland is that with the Empire winding down, the Union has served its purpose. It joins the UN the same year, the Scottish member sitting between the representatives for the 3.9 million people of Saudi Arabia and 13.3 million of South Africa.

2. The Stone of Destiny is returned to Scotland after the independence celebrations. Scottish Police hold back the jubilant crowds as the stone is welcomed at the border. A piper welcomes it home to Arbroath Abbey.

3. Queen Elizabeth's second coronation takes place over the Stone of Destiny in a refurbished Palace of Holyrood in 1953. The Scottish Government celebrates the event with new blue 'E1R' letter boxes. The English press label it a stunt.

4. Scotland re-establishes its east coast burghs’ European trade contacts from the time of the Hanseatic League. On March 30th, 1956, mayors from Flemish towns take part in an emotional ceremony in Berwick to remember the Flemish merchants killed when Edward I of England ordered his men to slaughter all 17,000 men, women and children there 660 years before.

5. Scotland a signatory to the Treaty of Rome in 1957.

6. Edinburgh rapidly expands as the population and services around Scotland’s government grows there.

7. The Scottish government invests in Glasgow to give it a facelift. It loses its grim post-imperial waterfront to be reborn in the architectural style of Charles Rennie Mackintosh (See above). The Highlands complain that too much investment is happening in the south.

8. Reverse emigration begins and children and grandchildren of Scots who emigrated in the last decades of Empire return from around the world. Gaelic speaking grandchildren of Nova Scotian émigrés, speaking English with strange Canadian accents, begin to resettle the Highlands.

9. In a 1960 referendum, Berwick-Upon-Tweed votes to return to Scotland, motivated by the better social services, healthcare and free transport for the elderly to the north. Other English Border towns also threaten to secede for the same reason, much to the annoyance of the British parliament at Westminster.

10. Oil is discovered under Scottish waters in the 1960s. Scotland leaves the oil industry in private hands and the oil begins to flow as the American oil companies apply their open water extraction skills learned in the Gulf of Mexico.

11. Glasgow’s social deprivation from the last years of Union is largely cured by 1970.

12. A cod war with Iceland is averted in the 1970s when Scotland and Iceland come to a peaceful agreement on their sea borders.

13. British PM Ted Heath follows Scotland with what is left of Britain into full membership of the Common Market in 1973.

14. The rump British state is refused an IMF loan in 1975, due to its lack of collateral. It goes cap in hand to Europe for funds.

15. In 1978, Scottish football is made a laughing stock as the team is bundled out of the World Cup in the first round, after boasting they would win it.

16. Scotland has a referendum in 1979 and votes to leave the EEC, even though 51.6% of the electorate choose to remain. Under Scotland’s 1949 Constitution, 40% of the electorate need to vote ‘Yes’ for Scotland remain within external organisations. The 'Yes' vote cries foul.

17. Margaret Thatcher is elected PM of Britain in 1979 and presides over EEC investment – mainly French and German subsidies - to reinvigorate English and Welsh industry, concentrating on mining.

18. In 1981, Scots band Rusty Nail win the Eurovision Song Contest, narrowly beating English band Bucks Fizz. Their gimmick is for the two girls to pull off the two men’s kilts, revealing women’s underwear.

19. Using her new-found oil wealth, Scotland begins building a breathtaking program of infrastructure in the 1980s. Scotland is soon covered in an integrated modern network of roads, rail and ferry links, addressing Highland concerns about excessive centralisation. The A9 becomes the backbone of the road system, a three-lane superhighway from Edinburgh to Inverness, one of the safest roads in Europe.

20. Aberdeen and Inverness hit one million people by the year 2000. Oban, a thriving West Highland student city of 500,000, becomes the twin city of Bergen in Norway.

21. In the 1980s, Scotland becomes famous for its effortless transition from heavy engineering to high tech, fuelled by low corporate taxes and government relocation subsidies. Silicon Glen becomes an R&D and export phenomenon, unlike the cheap PC manufacturing facilities in England, which take advantage of its cheap labour.

22. In 1985, the Glasgow’s Mile’s Better campaign celebrates the city as one of the most beautiful in the world.

23. By 1990, oil revenues have given Scotland one of the hardest currencies in the world, and the Scottish pound becomes a safe haven currency, alongside Switzerland and Norway’s. (2)

24. A sovereign oil fund is created in 1990 to prevent successive Scottish Labour governments spending oil revenues on infrastructure Scotland no longer needs, and to keep inflation down. Despite this, Scotland is soon regarded as one of the most expensive places in the world, but not for the locals, who are paid in local currency and find everywhere else in the world ridiculously cheap. Scottish students become known throughout Europe for their annoying leather backpacks and free higher education.

25. Scottish unemployment drops to among the lowest in the western world, while the Scottish welfare state is the envy of Europe, with poverty almost non-existent.

26. By 2000, Scotland’s population reaches 7 million, having grown at the same pace as other similar size European countries since 1950, supplemented by extensive reverse emigration. (3)

27. In late 2008, a consortium of Scottish and Norwegian banks bails out Iceland, after the Welsh Prime Minister of Britain – known popularly as 'Flash' Morgan for his role in the credit crisis there – invokes anti-terrorism laws to seize Icelandic assets to protect British investors.

28. In 2009, Scotland shrugs off the credit crunch and the subsequent depression by dipping into its $326 billion sovereign oil fund, recently hit by the world economic downturn. (4)



I hope this gives at least some Scots an idea of how much their birthright has been stolen from them, and how much is at stake in the coming referendum.


Any resemblance to actual events or to persons living or dead is purely intentional.






References

(1) Murray G.H. Pittock, Scottish Nationality, Palgrave, New York, 2001, pages 100-102

(2) See http://www.oilofscotland.org/

(3) Norway – from 3.2 million to 4.6 million; Denmark – from 4.3 to 5.3 million; Sweden – from 7 million to 9 million; Portugal – from 8.4 million to 10.7 million.

(4) This is the current balance of the Norwegian Sovereign oil fund, which is spread across a mixed portfolio of ethical investments. Twenty nine corporations are barred from receiving any of the funds.
http://www.swfinstitute.org/fund/norway.php

Play Crash Gordon Off, Keyboard Cat

Couldn't resist it. Behold, Keyboard Cat.

Actually, before you behold, first check this out. It's like the video equivalent of the FAIL blog. OK, now this might make a bit more sense:




Once again, comedy cuts our so-called leaders down to size.

Not that he needed much cutting in this case.

Tuesday, March 24, 2009

Is Salmond Up To It?

Compare if you will the Ireland of 1798 to that of 1920. Or the India of 1857 with 1947. The rebellions on the earlier dates (1798 & 1857) were doomed to fail, taking on a British Empire at the peak of its power. The latter dates (1920 & 1947) were the culminations of successfully orchestrated struggles, using concerted colony-wide campaigns of obstruction and resistance to disable Britain’s ability to rule each region.

Both colonies were ultimately successful at gaining independence, although by very different means. Both of Ireland’s rebellions were violent. In contrast, after the suppression of the 1857 rebellion, Indians realised they could not leave the Empire by force of arms and eventually adopted Gandhi’s policy of non-violent resistance.

In contrast, the successful twentieth century rebellions were both begun while Britain was engaged in fights for its very existence.

This is again the case today.

Britain is now undergoing the worst financial disaster in its history. Its self-appointed political super-class has managed to mire the pseudo-state in unprecedented and almost unimaginable levels of debt. Its banking system is falling apart at the seams with a run expected on sterling, hyperinflation a possibility, and talk of the IMF intervening.

Make no mistake, Britain is on the ropes.

If there ever was a right time for Scotland to walk out of this Union, this is surely it.

The question is this: is Alex Salmond is up to the task of leading her out?

Because if Whitehall tries to delay, prevent, annul, or nobble Scotland’s independence referendum - as it almost certainly will - there may well be a groundswell of popular democratic outrage, but if the moment is not seized, the opportunity will be missed altogether.

We all know Alex loves a curry, but is he up to being Scotland’s Gandhi?



Wednesday, February 11, 2009

Why I am Blogging


Growing up in southwest Scotland in the early 1980s, fear dominated my coming of political awareness as I stared out at the sea mountain that is Ailsa Craig.

There is a conversation with my father that sticks in my mind - you know, the typical father-son chat about George Orwell and his Stalinist vision of our future in Nineteen Eighty-Four, and whether we would soon be under permanent government surveillance.

“Ach, they've got bigger fish tae fry than you, son,” he would say.

That insidious feeling that I’m always being watched has stayed with me ever since. I now recognise it for what it was: a manufactured anxiety by the media. After all, Big Brother headlines sold newspapers. But the proliferation of cameras in all our major world cities since has done nothing to reassured me.

Around the same time I remember another cosy fireside chat about the Cold War, specifically on the likelihood of nuclear annihilation, especially considering the American nuclear subs parked up the road in Holy Loch, near Glasgow: prime targets in any nuclear exchange. It was a very real scenario. I clearly recall a Daily Record centre-spread that showed the probable thermonuclear blast zone and fallout area. Again, my father’s answer was the same dismissive optimism:

“You'll no ken ocht aboot it onyway. Whit's the point o' worrying?” "That's awricht fer you tae say," I shot back. "Ah huvnae lived yet."

For reasons that still escape me, this struck him as something profound. To me it was self-evident, bordering on the bleeding obvious. What I didn't appreciate at the time was that this was my fathers's way of dealing with reality: his entire adult life had been spent in the shadow of the Cold War. It was now my generation's turn to come to terms with what it all meant.

In our new uni-polar world of economic summits and multilateral cooperation, it is easy to forget what it was like at that time. Personally, I went through a period of deep despair about my life which affected the life decisions I made, even whether it was worth making any plans at all. The fear of climate change does not even come close. I now realise it had an insidious effect on how I engaged with the world around me. Why bother to make the world a better place when it could all end in a mushroom cloud on the horizon, black rain, an endless nuclear winter, stillborn babies, mutant children and starvation? Eventually, I resigned myself to the same fatalistic attitude as my father. Why worry? You'll no ken ocht aboot it onyway.



A New Age - but what was it?

That's why the 1990s were so remarkable for me. The perpetual fear of nuclear hell was OVER. Jesus Jones' song Right Here, Right Now captured the euphoria that our entire civilization was no longer on death row. It's still one of my favourite songs. OK, the "watching the world wake up from history" bit was drawing a long bow but, still, a pretty good effort at capturing the Zeitgeist.

Then, as footage of Desert Storm, Bosnia, Rwanda & Somalia rolled before my eyes, it soon became clear that Mr. Jones had been guilty of premature extrapolation. The Cold War may indeed have been over, but as calendar followed calendar, three things became increasingly self-evident in the 1990s: first, history was not over. Second, small wars would now be much more visible. Third, they would involve civilians - not as incidental "collateral damage", but as often as the singular purpose of the war. A lot of civilians.

After a little research, a further shocking realisation dawned - that American intervention around the world was nothing new (please excuse my terrible naivety). With my eyes clear of Cold War mist, I was appalled to discover that America had been waging wars and staging coups for quite some time, often against elected democracies: Iran 1953, Guatemala '54, Chile '73 and El Salvador & Nicaragua in the 1980s, to name but a few.(1, 2)

It was a moment of profound revelation to me. I had picked up a love of history and America from my father. I still loved American culture, but what I had learned changed everything. I had that uneasy feeling that most of what I thought I knew about the world was completely wrong.



Working It Out

Having been an engineer, I realised I had to go back to first principles. So I took some time out to study history and set out to discover what the hell was going on. After a few years, I reached the point where I thought I understood it, where I felt I had achieved sufficient perspective to appreciate the grand scale of immense forces, all vying for supremacy: land hunger, population growth, nations, class, religion, ideology, gender, revolutions, capital, market forces, with great men and women occasionally leaving their mark. It all made a kind of sense. No one person or group was in charge, or at least not for long.

Or so I thought.

Then came the global financial crisis.

A New Perspective

I'd been reading what I could find about the credit crunch but even with my engineering, business and history knowledge I still could not grasp what was going on. With the world's financial system brought to its knees, wild global stock market and commodity fluctuations, international investment and retail banks erased from the landscape, the survivors refusing to lend to each other, money had ceased to have any meaning as hundreds of billions of dollars were thrown at banks to keep them afloat. Suddenly, all three of America's car companies looked like they might go to the wall, Britain was using anti-terrorism laws against Icelandic banks, there was a partial collapse of sterling(3), interest rates dropped to almost zero, millions were made unemployed, a global depression was supposedly on the way(4), and analysts were predicting that the US dollar would soon be replaced as the world's reserve currency.

Capitalism was on the canvas with the referee counting to ten, but was it 1929 again, or something new?



Notes

1. For an excellent study on how Churchill invited in the US to overthrow the democratically elected government of Persia in 1953 after the president announced that he wished to take control of Persia's oil revenues, see Stephen Kinzer, All the Shah's Men: an American coup and the roots of Middle East terror, John Wiley and Son, 2003

2. Kinzer covers the long history of US foreign interventions in Overthrow: America's Century of Regime Change from Hawaii to Iraq, Henry Holt and Co, 2007. John Pilger has a more recent treatment of the subject in a South American context in his excellent documentary The War on Democracy

3. At the time of writing (Feb 2009), sterling has dropped 21% in value against the Euro between Oct 7 and Dec 30, 2008, before making a partial recovery.

4. Gary Duncan, Rise in US jobless raises spectre of Great Depression, TimesOnline, January 10 2009.



A Final Word

This has been my opening post, with the tone I'd like to maintain in my future posts. I shall make no claims without evidence.

Future postings shall (I hope) be briefer - if only because of time. It takes to gather quality footnotes. I only wanted to set the mood, as it were.