The basic message of this article really is stated in the title. That really is the basic point to be made here. Wales can be a sovereign, independent, prosperous, self sustaining nation state through the issuing of its own debt free currency to match its annual GDP (Gross Domestic Product) – which currently stands at around £62,190 billion pounds according to the 2017 GVA (Gross Value Added) balanced figure for Wales by the Office of National Statistics – GVA being a very close indicator of GDP.
In other words, if the current Welsh government declared Welsh sovereignty today, a sovereign Wales could print approximately £62,190 billion pounds debt free right now and, on top of the tax take, spend it on Wales and its people as it sees fit.
The process of sovereignty is a simple matter. Yes, it is to do with love of country, people, nationhood, a sense of place, accountability and the ongoing spiritual and historical link with the past, present and future. But most people seeking to reaffirm sovereignty also know that economics are key to the nuts and bolts of real sovereignty.
The World Held to Ransom
Those studying recent and not so recent world history will know that, for many centuries if not millennia, the civilisations and nations of the world have been held to ransom, often literally, by the international bankers, financiers, monopoly/crony capitalists and transnational corporations who care not for the concept of nations, borders or autonomous peoples and countries, and who have been practising their own very special take on the magic money tree for many many years. These are neo-liberal in the sense that they want free unregulated markets and laissez faire economics for markets that they mostly control or monopolise.
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. – Henry Ford
The process by which money is created is so simple that the mind is repelled. So said Canadian economist John Galbraith. And he was right too.
As can be seen through much of history, whomever controls the money supply of a country is essentially in charge of that country. Sadly and nonsensically, most of the world’s countries are not really in control of their own money supply but are rather controlled or misdirected by state borrowing, by whomever controls their central bank and by the general money supply created via the private high street banks – as mentioned, most of these by now being controlled by a collection of international central bankers and globalists who care little or none for countries or for the concept of countries, nations and definable borders and cultures.
Money From Thin Air
Over the centuries this cabal, or cartel, have been crafting their well honed technique of fractional reserve lending – essentially creating the vast majority of new money out of thin air, or, to put it another way, conjuring up magic money and lending it to people with interest, with no real limit to the amount of new private money they can create.
In the present UK state, the private high street banks create 97% of the general money supply in the form of everyday loans created out of nothing and, instead of mostly being directed at the productive economy, are being disproportionately lent as mostly consumer and mortgage lendigng. This skewed over lending has inevitably helped to create an overinflated economy and a culture of credit bubbles and boom and bust, especially in regards to mortgages and the resulting bloated house price market.
The UK government and state can also be said to be an unwilling host that’s victim to this parasitic force in general. For years, rather than creating its own debt free currency, it has borrowed most of the money it needs to spend on the countries of Britain, by selling gilts or bonds as IOU’s to entities such as insurance companies and pension funds, unknown overseas sources and the Bank of England – money which it has to pay back to these bodies plus interest. This incurs compound interest and an ever increasing debt for the UK government and state which it can never realistically pay back.
But all of this debt is all utterly avoidable and unnecessary so why do governments and countries choose to bizarrely accept this present flawed situation and acquiesce to these international financial barons? Whatever the reason, there seems to be a general consensus in all the nations of Britain that the UK state, with its doomed economic situation and immoral foreign and domestic policies, is flapping about in its final death throes.
An Opportunity Looms
This brings incredible opportunities for Wales, for all the other nations of the island of Britain and for politics in general. All of this can be changed overnight. It’s time for Wales and the Welsh Britons to show the way once more. How? By a Welsh nation state issuing its own debt free currency, totally free and with no debt attached, that’s how. A system also called Sovereign Money as advocated by groups such as Positive Money and many others from all across the political spectrum.
As Cardiff’s much admired Harry White stated with his usual gusto even when he was well in to his late eighties “The banks shouldn’t create money out of thin air and charge interest on it – the state should without interest”. This isn’t a left or right thing, this isn’t a statist, socialist or capitalist thing. No, this is something far more exciting – the creation of debt free currency which would mean being freed from perpetual debt enslavement and having the freedom to prosper as a self sustaining country that can open out to friendship and trade with the rest of the world as it wishes.
So how will economic sovereignty via a debt free currency work for Wales?
In line with what groups such as Positive Money and others have recommended for a debt free, sovereign money system, in its basic form the Welsh currency, overseen by the government of the day, will be printed /created free with no debt or interest owed to anyone at its point of creation, and this money kept in a state treasury account of the publicly owned Bank of Wales. The new money will simply be placed in the central treasury account every year and, to avoid inflation, would be inline with whatever the GDP figures for Wales are for that year. If the GDP of Wales is approximately £62.1 billion (as GVA was as an indicator in 2017) then £62.1 billion will be created and placed in the account. If the GDP is £100 billion, £100 billion will be placed in the account etc.
Welsh Monetary Creation Committee
A Welsh monetary creation committee would need to be carefully chosen by the Welsh Parliament and by representatives from all Welsh areas of life including SMEs, industry, agriculture etc. The monetary creation committee would discuss and decide on the annual total currency figure to be created each year and will also need to make sure that the right amount of money goes to the real, productive economy and to SMEs in Wales which will in turn increase GDP. And this monetary committee would also be answerable and accountable to the Welsh Parliament at all times and also accountable to the people of Wales, with their meetings and discussion available for all to see and meetings preferably open to the public to attend and observe.
The debt free money created in line with Welsh GDP would either be granted to the government of the day to spend and circulate in to the Welsh economy as it sees fit or by lending it to the high street banks which would then act as brokers or intermediaries and would then lend this money on to businesses and the productive economy under the committee’s guidelines as stated above. Or a mixture of these two options could be implemented.
How this money is spent in general will also depend a great deal on the government of the day and the democratic mandate given to it of course i.e. a government who believes in limited interference, in a more mixed economy or in having more emphasis on public spending and state involvement. Higher or lower taxes would also be a matter for the government of the day of course although it’s hard to see how taxes, especially income tax, couldn’t be substantially lowered or even possibly eliminated under a successful debt free system.
High street banks and mutuals including co-operatives, community banks and credit unions will also be actively encouraged to flourish and offer competitive and comprehensive services to Welsh citizens, including catering for consumer and mortgage lending. And in the long term, all of these would be left to fend for themselves and to stand on their own two feet as capitalism in its everyday form dictates, and not be bailed out by the state if they get in to trouble.
The main difference would be that high street banks could only use real money that is in existence and could not create money from thin air when creating new loans as currently occurs.
And the drive towards a solely digital and cashless society so beloved of the globalist bankers could be reversed in Wales rather than increased, with the current 3% cash in actual coins and notes presently in circulation increased to perhaps 10% or more – allowing more Welsh citizens to buy, sell and trade freely without having to rely on tedious overbearing technology and digital tracking software as the only option available to them.
Welsh exports figures are also extremely healthy – worth £16.9 billion in 2017 and closely aligned to imports according to stats Wales. Wales also exports a great amount of the electricity that’s generated in the country to the rest of the UK state, and the vast amount of Wales’ waters and other natural resources are currently also given away without any Welsh regulation or real economic benefit to Wales as a country.
What is the current spending on Wales, how much is currently collected here and how will a sovereign Wales be much better off with its own debt free currency?
GVA of Wales as an indicator of GDP:
To get to the basics and the crux of things again – according to ONS (Office of National Statistics) figures, the GVA of Wales in 2017 was £62,190 billion (balanced). GDP figures aren’t currently officially produced for Wales by the ONS but they are normally slightly higher than GVA anyhow and GVA gives a very reliable and close estimate of GDP. GVA equates to GDP before accounting for taxes and subsidies on products (incidentally, the GERW report by the Wales Governance Centre gives a Welsh GDP figure of £61.5 billion for 2014-2015).
Therefore if a debt free money creation system existed for Wales for 2017, a sum of £62,190 billion would simply be put in the account of the Welsh treasury for the Welsh government of the day to spend in Wales as they see fit, and on top of any tax money collected.
Tax collected in Wales:
Overall tax collected in Wales in 2016-2017 was £18,948 billion (HMRC figures which includes the population split for North sea revenues) but doesn’t include council tax collected by Welsh councils. According to The Welsh Tax Base Report by The Wales Centre for Public Policy, in 2016-2017, £1.4 billion was collected in Wales in council tax and £962 million in business rates.
Therefore, approximately £21,310 tax money was raised in Wales in 2016-2017
This means that, by looking at one year (2017) as an example, together with debt free money creation, the money raised in Wales each year could be at least £83,500 billion each year.
Spending- how much does the UK state currently spend on Wales?
According to ONS figures, total managed spending on Wales in 2016-2017 was £39,334
What does this all mean? It means Wales can be a free, prosperous and a far better off nation right now
As noted, by looking at 2016-2017 figures as a guide, a Sovereign Welsh state, can create an estimated £62,190 billion pounds of its own debt free currency which reflects its GDP (or GVA in this case).
By adding to this the current tax money of £21,310 billion presently raised in Wales, this would mean that Wales would have an estimated £83,500 billion each year as basic revenue to spend on this country and its people, compared to the roughly £39,334 billion that’s currently spent on us.
This means that, by looking at 2016-2017 figures, in a sovereign state of Wales issuing its own debt free currency we would have at least £44,166 billion more available to spend on us as a country than we currently have being stuck to the UK government, or to the EU or any other union for that matter. After all, why should any other neighbouring nation or any union have to keep bailing us out and subsidising us when we can pay for ourselves?
A pegged Welsh pound. The options of fixed pegging and a dual or parallel currency
It’s also suggested that, for the foreseeable future the Welsh currency could be pegged to another currency such as sterling. This could be a parallel or dual currency system in that a, say ‘Welsh pound’, could be de facto pegged to a currency such as sterling at 1:1 parity like the Irish punt was to sterling very successfully from 1928-1978. With all the necessary and proper safeguards in place, both currencies could be accepted and be exchangeable in Wales specifically. A more flexible or free floating currency could also be considered in future of course.
Wales can be a rich and prosperous nation. We can throw away the bizarre outlook that has seen elements of the Welsh and British state political class openly promoting a begging cap and bowl mentality for Wales in London, Brussels and elsewhere for the last 400 years.
And we can mostly do away with the long drawn out debates about closing the deficit, balancing the books, of ‘fighting austerity’ and of lower or higher taxation because, as contentious ‘hot issues’, all of these become largely meaningless and redundant when looking at the option of a debt free currency system. And when another Welsh or UK politician or person disdainfully or genuinely asks ‘how can you afford to be independent’ we can tell them straight – by simply printing our own debt free currency.
And this I believe is exactly what Wales will need to do to become the prosperous sovereign state it deserves to be and is rapidly moving towards being.
In 2016 I registered a non left/right aligned Welsh political party, Cymru Sovereign, which has a Welsh debt free currency and Welsh sovereignty at its core – the first time for a Welsh party to do this as far as I’m aware. But the principle is obviously bigger than any party and also more important than any tired left/right paradigm that the decaying mainstream media is still desperately trying to push on us – it’s a core principle of sovereignty that should underpin any true sovereign nation state.
Wales can circumnavigate around this current system of debt enslavement which I believe is robbing all of us of our futures, and can become the prosperous nation state it really deserves to be. The rebirth of hope awaits us all.
Note to the reader:
The full version of this article by Gruffydd Meredith can be found on ‘The Sovereigner’ website. To view it please click HERE.