At Ein Gwlad we are not only diligently preparing our political strategies and developing policies to guide us to the all important Welsh Government Elections in 2021, and beyond to independence. We are also planning for the immediate, mid term and long term – when it comes to financial and general economic/ financial plans for a free Welsh sovereign state.
It’s all very well riding along on a wave of emotional intent – when it comes to independence – but we have to plan for how we will do things when we arrive there. That is why Ein Gwlad is already putting together the infrastructure plans for our future economic system. It’s no good saying “what do we do now” the day after independence is declared!
We are not a ‘follow the leader’ type of party. We put great emphasis on lateral, outside of the box thinking. This is not a cavalier approach, however, creative and original thinking is something sadly lacking in our current political systems. All other establishment guided parties tend to operate in a blind, ‘let’s do as we’ve always done’ manner, instead of stepping back and looking at things from a different angle. Some don’t even have a compass when it comes to the Welsh economy – making it up as they muddle along – as highlighted not so long ago by Lee Waters AM (the Labour Deputy Minister for Economy and Transport at the Welsh Asembly when he admitted that his party have been making it up as they go along, in fact continuously since they’ve been inpower for over twenty years in Cardiff Bay). Little wonder we are the poorest nation – not only in the UK – but in western Europe. [see previous in depth NP article on Lee Waters’ statement]
Our approach is one where we pinpoint the basic problems in our economy, and then set about rectifying those problems, using fresh thinking and a new approach. We study other countries (especially the smaller independent ones) who have successfully transformed their economies and have become some of the richest and most affluent countries in the world. There is no reason why we can not do that, given our natural resources and more importantly, the talent we have, and continue to produce in Wales. We have also proved in the past that we are one of the hardest working nations in the world. It’s OUR citizens who should be rewarded for that effort and talent.
Where To Start?
The staring point is the financial system itself, at the heart of which is the banking system for each country. When we get our independence, we need to wipe the slate clean and rethink and restructure the way our financial system will work for us post independence.
One of our Economics Spokespersons (Dr. Stephen Morris) will be publishing a series of articles on this very subject here on our News Portal in the near future.
However, before then, we need to keep an eye on what’s happening in the big outside world – when it comes to finance, economics and our current monetary system here in Wales.
Below is an article based on the work of F. William Engdahl who is a strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine ‘New Eastern Outlook’ where the basis for this article was originally published.
The Writing On The Wall?
Unusual remarks and actions by the outgoing head of the Bank of England and other central banking insiders strongly suggest that there is a very ugly scenario in the works to end the role of the US dollar as world reserve currency. In the process, this would involve that the Fed deliberately triggers a dramatic economic depression. If this scenario is actually deployed in coming months, Donald Trump will go down in history books as the second Herbert Hoover, and the world economy will be pushed into the worst collapse since the 1930s. Here are some elements worth considering.
Bank of England Speech
The about-to-retire head of the very special Bank of England, Mark Carney, delivered a remarkable speech at the recent annual meeting of central bankers and finance elites at Jackson Hole Wyoming on August 23. The 23-page address to fellow central bankers and financial insiders is clearly a major signal of where the Powers That Be who run world central banks plan to take the world.
Carney addresses obvious flaws with the post-1944 dollar reserve system, noting that,
“…a destabilising asymmetry at the heart of the IMFS (International Monetary and Financial System) is growing. While the world economy is being reordered, the US dollar remains as important as when Bretton Woods collapsed.” He states bluntly, “…In the longer term, we need to change the game…Risks are building, and they are structural.”
What he then goes on to outline is a remarkably detailed blueprint for global central bank transformation of the dollar order, a revolutionary shift.
Carney discusses the fact that China as the world leading trading nation is the obvious candidate to replace the dollar as leading reserve, however, he notes,
“…for the Renminbi to become a truly global currency, much more is required. Moreover, history teaches that the transition to a new global reserve currency may not proceed smoothly.”
He indicates that means it often needs wars or depressions, as he cites the role of World War I forcing out sterling in favor of the US dollar. What Carney finds more immediate is a new IMF-based monetary system to replace the dominant role of the dollar. Carney declares,
“While the rise of the Renminbi may over time provide a second best solution to the current problems with the IMFS, first best would be to build a multipolar system. The main advantage of a multipolar IMFS is diversification… “ He adds, “… When change comes, it shouldn’t be to swap one currency hegemon for another. Any unipolar system is unsuited to a multi-polar world… In other words he says, “Sorry, Beijing, you must wait.”
Basket Of Five Currencies – Including The Renminbi
The Bank of England Governor proposes in effect that the IMF, with its multi-currency Special Drawing Rights (SDR), a basket of five currencies—dollar, Pound, Yen, Euro and now Renminbi—should play the central role creating a new monetary system:
“The IMF should play a central role in informing both domestic and cross border policies. … Pooling resources at the IMF, and thereby distributing the costs across all 189 member countries…”
For that to work he proposes raising the IMF SDR funds triple to $3 trillions as the core of a new monetary system.
Then Carney proposes that the IMF oversee creation of a new payments infrastructure based on an international “stablecoin.” Referring to the private Libra, he clearly states a “new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies.” Note that Carney, a former Goldman Sachs banker, is mentioned as a leading candidate to replace Christine Lagarde as IMF head. Is his speech open admission of what is being planned by the world’s leading central bankers as the next step to a world currency and global economic control? Let’s look further.
The Carney speech, when deciphered from its central bank language, gives us for the first time a clear roadmap where the powers that control world central banking would like to take us. The world reserve role of the US dollar must end; it must be replaced by some form of IMF SDRs as basis for a multi-currency reserve. That in turn would ultimately be based on digital money, so-called block chain currencies. Such currencies, make no mistake, would be completely controlled by central bank authorities and the IMF. That would require their often-proposed elimination of all cash in favor of digital money where every cent we spend can be monitored by the state. This cashless society would also set the stage for the next great financial crisis and the confiscation by governments of ordinary citizens’ bank deposits under new “bank bail-in” laws now on the books since 2014 in every major industrial country including the EU and USA.
The IMF is fully behind the turn to global blockchain digital currencies and use of SDR to replace the dominant US dollar. In a little-noticed speech in November 14, 2018, IMF chief Lagarde strongly indicated that the IMF was behind central bank digital currencies as well as cashless societies. She noted very carefully,
“I believe we should consider the possibility to issue digital currency. There may be a role for the state to supply money to the digital economy.” She added, “A new wind is blowing, that of digitalization…What role will remain for cash in this digital world? … demand for cash is decreasing—as shown in recent IMF work. And in ten, twenty, thirty years, who will still be exchanging pieces of paper?”
The introduction of this central bankers’ new digital currency world will require, as Carney suggests, dramatic upheavals of the status quo, upheavals that would lead to the end of the dominant role of the US dollar since the 1944 Bretton Woods agreement. As that dollar reserve currency role is a pillar of American power in the world, for that to happen would require nothing short of catastrophe. Is this in fact what the Federal Reserve is quietly planning with its money policies?
A remarkable hint of what might be in the works came in an OpEd by the person who until 2018 was the very important President of the New York Federal Reserve Bank, Bill Dudley, who like Mark Carney is a senior Goldman Sachs alumnus. Dudley is no minor actor in the central bankers’ world. Until last year he also was a member of the Bank for International Settlements Board of Directors and chaired the BIS Committee on Payment Settlement Systems and the Committee on the Global Financial System.
Dudley, pointing to the Trump trade war policies and economic dangers of same, then issues the following rare undiplomatic declaration:
“Trump’s re-election arguably presents a threat to the U.S. and global economy, to the Fed’s independence and its ability to achieve its employment and inflation objectives. If the goal of monetary policy is to achieve the best long-term economic outcome, then Fed officials should consider how their decisions will affect the political outcome in 2020.”
While it shocked many, Dudley is merely making public what the Fed has done since its creation in 1913 — influence the course of world and US politics stealthily behind the cover of “neutral” monetary policies. Dudley suggests not “Russian interference” but rather Fed interference.
The Fed could easily tip the US into crisis. The debt levels of the US economy are at record high levels for private households, Federal government, and US corporate debt. Most US corporations have used growing debt, well over $9 trillion, to make stock buybacks rather than invest in new plant and equipment, fueling an unprecedented bubble in the S&P stocks. The rising stocks are not a sign of economic health but of a dangerous speculative bubble vulnerable to collapse.
Were the Fed now to resume rate rises and continue its less-publicized Quantitative Tightening into 2020, a domino-style series of debt defaults, corporate bankruptcies, home mortgage foreclosures, default on car loans and student loans could quickly make a second Trump Presidency in 2020 more than doubtful. However that would be no grounds for the rest of the world opposed to Trump policies to cheer. It would also trigger collapse in major emerging market countries who have borrowed hundreds of billions denominated in US dollars, including Chinese state companies, Turkey, Argentina, Brazil to name a few. EU banks from Italy to Germany to France would fail.
If this Dudley scenario comes to pass in 2020 or not, only the key central bank actors know for sure. It is clear that, after almost eleven years since the 2008 global financial meltdown, the unprecedented central bank zero interest rate policies in the EU and until recently the US, have fueled creation of what some call an “everything bubble”, not only in stocks, in corporate and public bonds, in home prices. Is a new Fed intervention to raise rates and tighten credit the event– the deliberate central bank rupturing of this inflated bubble using the excuse of the Trump danger to the world economy– that Carney has in mind when he says, “transition to a new global reserve currency may not proceed smoothly,”? Let us hope not. The coming months will tell.
We are deadly serious regarding our plans for our country, and we will find the best solution, whether that will be tied in to the global reserve banking system or not, we will decide in due course – following further extensive research and in depth discussions.
We will do our part – that’s our promise. All we need is the support of the people, if they are serious about a better financial future for our country and her citizens, then they need to support Ein Gwlad candidates in the 2021 elections.
Recently retired Consultant Electronics Engineer, now living in Aberaeron Ceredigion. Educated at Bronant County Primary School, Tregaron County School and the University of Wales Institute of Science and Technology (Cardiff).
Involved in politics for nearly 50 years. Former vice president of Plaid Cymru – resigned in 2002. Currently the Chairman and a founding member of Ein Gwlad. Gwilym is also one of our permanent contributing editors at Ein Gwlad’s News Portal.