How Wales could be better off independent

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 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.

I'm sure that many readers will have questions and objections and I would look forward to examining this subject in more detail.