Can Wales AFFORD independence?

Below is a short article I pasted in in May 2011. It has so far been view 85 times and received 0 response.

Apparently no one disagrees with it but why the silence? when we examine the thing most of us spend our entire lives chasing and worrying about – money. Is it a taboo subject?

– – – –

The question “Can Wales afford to be independent?” is a misguided one based on confusion of how the economy and the money system operates.

A more legitimate question is – Can Wales afford to continue to be locked into the failing UK economy where all crucial decisions are made in London?

If you want to discuss affordability you must understand the nature of money – the linchpin of all modern economics.

A quick overview of the money system:

Less than 3% of the UK money supply is in notes and coins – the rest is simply electronic numbers in bank accounts, credit card statements,and the like.

More importantly, the “electronic” 97% of the money supply is debt – to be paid back with interest – mortgage debt,business debt,personal debt,public debt. Our money supply is debt.

How has this come about? When banks lend money (or credit card extend credit) they don’t take it from somewhere else. They create it out of nothing – as debt – to be repaid with interest. Over time the debt supply of money overtakes the debt-free supply – notes and coins.

In the UK, the money supply grows by around 8% a year – all debt money. As an economy we have to borrow more money every year just to keep up to the paying the interest of previous borrowing. It’s like digging a deeper and deeper hole every year just to fill previously dug holes.

We now owe far more money than exists. There is no escape if we stay in a debt-based economy.

While the bankers and financial elites rule London, and London rules the UK, there is little hope for Wales getting off the debt slave treadmill.

We can only expect increasing debt, foreclosures, and cyclical inflationary growth (fuelled by expansive credit/debt creation) followed by recessions and cutbacks as the debts become unplayable.

The 2008 recession is just a calling card of worse times to come if we don’t get off the debt wheel.

So what could an independent Wales do to right the situation, you ask?

Simple – three little laws. One would create a national currency for Wales. Second, we create a national bank of Wales, democratically owned and controlled. Third, we would require the banks to do what most people think they do now – lend money they already have.

Only the national bank, on behalf of our nation would have the right to create money out of nothing. If the banks wanted to lend more money than they had they would have to borrow it from the national bank.

With a stroke of the pen we would reverse the playing field. The big financial wheels would have to pay interest to us, the country, for using our money – not the other way around, like in the UK now, where the entire economy is in debt to the elites. (a stupid, unjust, rotten system when you think about it).

So in the future, if Wales needed to undertake some major public projects (like building 10 more hospitals and 50 new schools) the question – do we have enough money for it? – would be senseless. The correct question in a debt-free system would be – Do we have enough workers and materials to undertake the projects?

So can Wales afford independence? Absolutely! If we take control of our money supply in a democratic and responsible fashion we could be in for a very bright future.

Can Wales afford to stay in the UK? Only if its prepared to suffer more debt, poverty, recessions, inflation, stagnation and misery.


  • Pingback: Welsh artists need an independent Wales to florish | Free Wales

  • Rhys

    Yes this is just what every country needs not just a Welsh Republic. You are advocating the control of the money supply and new hospitals and schools being built only ‘Do we have enough workers and materials to undertake the projects?’ By creating new money you create inflation, of course it happens now.. about 90% of money inflation is due to debt created money through fractional reserve banking as you know. But a Welsh govt would have to expect high rates of inflation if your simply creating money to fund public spending.

    • admin

      Good to see someone thinking about the issue!

      The idea that managing a democratically controlled and debt free money system will lead to run-away inflation is an old red herring that the financial elites will scream as soon as their fraudulent monetary system is challenged.

      The root causes of inflation is debt, and the need to continually grow (that is, inflate) the economy just to keep up to the interest paying treadmill. By getting rid of the interest-sucking-leaches called the “financial system” we would be eradicating the need to endlessly inflate the money supply.

      A public money system could ensure there is sufficient economic activity and incomes for all (without trashing the planet) while at the same time eliminating inflation as a wealth eroding aspect of our current morass.

      In our current debt/inflation system, money saved is value lost.

      For a good overview check out:

  • craig ab iago

    Perhaps everyone is silent because what you say is difficult to argue against. The no sayers always use the present state of the welsh economy as proof that we would never survive (although i’m not sure what that means, would wales sink into the sea?), which of course is a ridiculous argument. i’m not even sure i would want statehood if we are just going to continue with the exact same set up. The whole point of statehood is to be able to change things.

    However, im not convinced, as many are such as Adam Price, that we need to explain the economic argument in order to persuade the nation that statehood is the way forward. The reality of the situation is that every single “welsh” person in the no camp is there not because they dont agree with the economics or practicalities of statehood but because they are emotionally tied to London/england/britain; understandable really after 800 years of being told that should think like that. The same, of course can be said about those in the yes camp, we want statehood because were proud welsh people who are emotionally attached to the idea of running our own affairs and being represented in front of the world by our own people and flag. The economic argument is part of the package but the real point we need to get over is that wanting to be a fully functioning state, sitting at the table on equal terms with all other world nations is a matter of self respect and pride. And that for me is what Yr Alban has done or is doing. The economic argument is a side show to the main event, one that the no sayers will never just say “ok, youve persuaded me now”. Its a lot harder to argue with the self respect argument.

Leave a Reply

Your email address will not be published. Required fields are marked *