Archive for September 17, 2014

Scotland and the Debt Problem

It may be a moot point, in a couple of days time depending on the result of the Scottish referendum, however it represents one of the biggest decisions if they vote yes to independence. The basic premise is that Scotland want to maintain the pound as it’s currency, the UK Government have rejected this. In response Alex Salmond has said that Scotland will renege on it’s share of the UK National debt if they stick to this line.

It’s an interesting gambit, whatever happens a Nation needs to be trusted in order to succeed. Without trust in the financial markets borrowing costs can sky rocket. The National Institute of Economic and Social Research (NIESR) suggested that if Scotland did not honour it’s debt obligations it could cause huge economic problems for them.

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The first likely result would be a plummet in the credit rating that Scotland enjoys. This is almost certain to happen simply because it would be one of the first decisions that the new country would take and so it’s trust would be severely affected. This would leave the country unable to raise funds for a decade or more, at a time when the country would desperately need funds to build up it’s own infrastructure.

Whether this situation actually occurs or whether it’s brinkmanship is difficult to say. But most economic predictions suggest that Scotland would be a lot more expensive place to live at least for a few decades. The issue is that smaller economies have to pay higher costs simply due to economies of scale plus the huge rise in uncertainty in almost every area of life. Where do Scots get a passport, how do they pay their taxes, how do they tax their cars are just a small selection of the challenges that will be faced.

This will also be combined with reduced investment due to this uncertainty, higher costs in association with credit cards, food bills, and things like insurance and pension costs. There are probably thousands of other small challenges that will need to be faced, things like replacing the national broadcaster – the BBC and you won’t even be able to watch online without using a Smart DNS service or something similar.

The situation will be very similar to that of the Canadian and US border where you cannot access the other TV channels online when you happen to drift across a few mile. They are two different countries and although there’s no real physical barrier, if you connect from an independent Scotland you will need to change your IP address if you want to access any UK resources.

Food and water crisis in 3rd world countries

During the credit crisis all over the world and influencing so many of western people, there is some much more dangerous crisis happening in 3rd world countries in Africa and Asia. More than 783 million people don’t have an access to a safe water for drinking or using in their homes. What is more tragic – more than 2,5 billion people doesn’t have access to adequate sanitation. These are worrying numbers as it is more than one third of worlds population.

Food crisis has taken place drastically in recent years as the human population grows and it becomes hard to support it with food. There is not much land for agriculture left either. All this can lead to more than 30% of worlds population starving by year 2020 as said by World Bank. During last 30-50 years tremendous amounts of forests in Africa, Asia and south America has been cleared to gain wood and land, however the land is not usable in agriculture for growing crops. Droughts in Africa lately has raised the food prices and the poorer people can not afford food and starve.

Droughts have severe economic, nutritional and poverty effects. It is not only the 3rd world countries in the risk of food or water crisis. Nowadays because of weather change droughts are often developed even in US and Europe. Because of dry weather there has been incredible decrease of maize and soybeen crops in US. Therefor no one is protected. We have to think of better and more effective ways to produce food and grow crops. The forests and original biospheres should be saved as they help preventing droughts as well as produce oxygen.

In looking for better ways in producing food it can be always suggested to check  good baking tips for saving money, water and time. Such small actions could give a little but important benefit to everyone. Take a look at http://best-baking.com/ for some great tips on baking delicious cakes and other bakery products. Take your action and help fighting poverty now!