An independent prosperous Wales
When asked about independence the majority of Welsh people will reply something to the effect that it would be nice but not practical from an economic perspective.
The belief persists that an independent Wales is simply not affordable and we remain dependent on the generosity of the UK state.
But what if the opposite were true? Fact is, the opposite is true.
This following article will explain:
- why Wales remains a poorer nation in the UK;
2. why the world in general has been in a state of economic decline over the past few decades;
3. how an independent Wales could catapult itself into being the most prosperous country in the world.
Why Wales is the poor man of the UK
Despite gaining some powers through the devolution settlement in 1997, many of the powers needed to transform and invigorate the Welsh economy remain in Westminster and Brussels. We are still shackled to a single currency controlled by the Bank of England with its disastrous monetary policies.
The powers of the Welsh government are similar to a county council but with a wider remit and larger budget. It presides over an allowance of around 15 billion pounds allocated by Westminster each year.
However, we continue to be drained of financial and natural capital by contracts awarded to firms outside of Wales. Public transport and renewable energy exploitation are just two examples of this continuous drain.
Like county councils, the Welsh government is prohibited from stemming this outflow by EU and UK laws, such as the misnamed ‘best-value’ procurement regulations. They require contracts to be awarded to foreign firms that can under-bid local companies due to their scale and ability to leverage debt.
Hence, every year countless sums of money are sucked out of the Welsh economy. They show up as profits for big business and shareholders in London, Frankfurt, and other financial centers around the world.
The result is a booming southeast England while the rest of Britain has to tighten its belt.
The problem is systemic and can only be changed when the Welsh people have the power to alter how the system works. Yet our power as a democratic nation to make laws and improve the nature of the economy are extremely restricted, indeed almost non-existent.
Wales needs a system where taxes are collected and spent in Wales through a combination of nationalisation and awarding of contracts to Welsh companies. By keeping the money flow within the nation the economy is strengthened, not weakened and drained as it is today.
In essence, Wales needs the same powers and privileges that England currently enjoys with its seat of political power in London. Until that happens, Wales will remain a ‘poor man’ of the UK.
Why the world is in economic decline.
BBC produced a report a few months ago highlighting predictions by ‘economic experts’ that the next generation would have reduced prospects and suffer a lower standard of living than the previous generation. What was most astounding about this report was that there was no analysis of why we were collectively becoming poorer or what could be done about it. It was all presented under the false narrative of TINA – there is no alternative.
So are mainstream media and our political elites deliberately deceiving us or are they just simply ignorant of the facts? A bit of both, but more the latter than the former.
Is ignorance an excuse?
A recent survey of MPs conducted by the Positive Money group in London discovered that over 80% of MPs did not even know where money came from, let alone how the private debt-based system works to impoverish and enslave the majority. For details on this survey see: Shocking igonorance of MPs in Westminster
So why are we becoming poorer in the West with stagnant wages, persistent unemployment, government spending cutbacks and rising costs of living?
A scandal so big few can see it
The reason our economy is going down the tubes is that our money system has been privatised and is now based on debt – debt that extracts non-stop interest payments to the 1% while the rest of us must continuously tighten our belts.
In a nutshell, governments have allowed private banking cartels to fabricate virtually our entire money supply out of thin air (97% in the UK) as credit (their credit, your debt) complete with compound interest payments attached.
Allowing an economy’s money supply to be privatised as interest-bearing debt has a host of undesirable consequences, including:
- an ever increasing extraction of unearned income from the real economy (the 99%) by the financial economy (the 1%)
- a growing wealth gap between the few and the many
- a downward pressure on wages and an upward pressure on prices
- a scandalous housing price bubble dispossessing a whole generation from secure home ownership
- the proliferation of cheap disposable goods
- the collapse of small locally based business and the emergence of exploitative trans-national conglomerates
- the need to engage in ‘race-to-the-bottom’ export warfare and increasing dependence on external markets and the global economy
- the replacing of free market economies with rigged markets to serve the few (neo-liberalism)
- the manifestation of acute public and private dependency on a rogue financial sector that is turning us all into debt-slaves (neo-feudalism)
- the ‘normalisation’ of a parasitic financial economy that is sucking the life out of the real economy – the one we depend on for sustenance.
The killing fields of debt – a faulty design
We now collectively owe far more money to the banking sector than even exists – in the UK and worldwide.
Let that sink in.
It means we have to continue to be more indebted to keep the system ticking over.
It also means that sooner or later the whole system will collapse. Its own destruction is woven into its DNA. That’s not rocket science. It can be proven mathematically by simple arithmetic.
The consequences of attaching compound interest to virtually the entire money supply is first boom, then bust, then increasing poverty, then collapse.
Look at it another way. If you don’t have any debt and have money in the bank – it simply means that someone else is in debt. In a debt-based economy money only comes into existence when borrowed. That’s insane – but true.
A suicidal system
Ever wondered why we obsess about ‘economic growth’? The economy must continually grow to keep up with the increasing interest payments (or unearned wealth extraction – to call it what it actually is) on virtually everything. The unnecessary cost of interest is woven into the price of everything we need to buy. If the economy stops growing the money system collapses.
So we have the necessity of perpetual economic growth on a finite planet. It’s a completely insane and unjust system that is destroying the biosphere upon which we depend – as well as impoverishing us in the process.
So that is the problem … how do we fix it?
The question is, do we want to address this problem now and fix it?
Or do we want to continue to ignore it until we become so debt-enslaved and poor that violent revolution becomes likely?
Considering that fixing the current private debt-based system with a social credit system is relatively simple, I’d opt for that.
The essence of the change needed is to replace the private debt-based money supply with a debt-free money supply (social credit) for Wales. Simply put: change the rules of the the accounting game so that it favours everyone, not just the 1%.
Objections to sane social credit economics?
Some vested interests might claim that it would be far too complicated and disruptive. It’s not. Money is simply an accounting system, not based on anything of intrinsic value or scarcity. (No international currency is based on anything tangible since US President Nixon took the US dollar off the gold standard in 1971.) Switching from private debt to social credit is simply changing the rules of the game, and setting up institutions, (like a publicly owned and controlled national bank of Wales), to implement the changes.
Timid politicians might object that the banks would never allow their power to be diminished. To counter that objection, just one simple word: democracy. Democracy has always been the struggle of the people to throw off the shackles of those who would bind and oppress us. It is a never ending struggle. Why give up on it now?
As for the details, such as
- would a debt-free Welsh currency be interchangeable with a debt-based English pound (like the Manx pound is)?
- would the new currency have a pegged exchange rate or be floated?
- should this new currency be electronic, or paper/coin, or a combination?
- should a Welsh currency be backed by precious metals like gold and silver, stored in secure vaults?
- should there be a range of complementary local currencies to support local economies?
- should we engage in quantitative easing for the people, reducing and largely eliminating personal debt loads?
- should we institute a universal basic income to replace the current benefits system?
- should we start a public investment bank to finance local businesses, inventors and entrepreneurs?
You could answer Yes or No to any of these questions. Either way we would still be far, far better off once we have thrown off the suffocating shackles of debt.
These questions are opportunities that should engage the public and our elected representatives and be decided democratically, A social credit (debt-free) monetary system opens the doors to endless possibilities. All of them good.
But we have to start talking!!
An independent Wales the most prosperous country in the world? Are you kidding?
After many decades of neoliberal capture of discourse in mainstream media and politics, virtually the entire world suffers the debilitating effects of private debt-based finance. This is particularly true of the “big economies”. Ever wondered why the world’s richest countries are also the world’s biggest debtors? Now you know why.
Moving to a social credit-based economy would be like removing a growing blood-sucking financial leech off your back. A social credit economy would enjoy a health and vitality never experienced before in living memory. It would leapfrog us ahead of all other national economies burdened with debt.
Wages would be higher and the cost of living and housing would be lower. Goods for export could also be priced to undercut all ‘debt burdened’ economies (not that we would be dependent on exporting anymore). Problems regarding lack of sufficient funding for education, health and social care would cease to exist.
Tax on earned income could be replaced by tax on unearned income (e.g. bank interest). The Welsh nation in a short span of time could enjoy the greatest income security and standard of living anywhere in the world.
Our biggest problem would be stopping the millions of English trying to move to Wales for the good life. Strict migration controls would be essential 😉 .
Of course our number 1 spot would not last. People all over the world would also demand emancipation from the death grip of debt-based finance. As the chains of debt were removed, other nations would catch up no doubt. We would just have to be content with having led the way, like Moses led the Jews out of slavery in Egypt thousands of years ago.
But some country has got to start the ball rolling. Why not us?
Too good to be true? Do your own research.
If you want to learn more about our current dysfunctional economy you can do some of your own research. Check out some of the links below: