Printer Friendly

Borrow - but not from City cartels.

SIR - I totally agree with Dr Ian Jenkins on the Silk Commission and the proposed public borrowing powers for the Welsh government (Letters, Jan 3).

The last thing Wales wants is to be at the whim of the public bond markets, which are driven by the private banking cartels of Wall Street and the City of London.

Any borrowing powers would have to be vested in a public co-operative bank whose shareholders were the Welsh taxpayers, and supervised by an independent State body.

Dr Jenkins rightly refers to the dire consequences for some member EU states like Greece, and some American states like California on getting public borrowing wrong, and the same destiny could easily befall Wales.

However the biggest victim of the private banking greed that has prevailed over the past several decades has been none other than the mighty United States of America which now faces an insolvable fiscal cliff, whose origins can be traced back to 1913 when Congress was hoodwinked by the private banks into accepting their central bank creation, the Federal Reserve System, which has subsequently overseen the demise of the once mighty dollar through their inflationary money creation policies.

Founding father Thomas Jefferson had supposedly warned: "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered".

How prophetic as now following the credit crunch almost 50 million Americans are on food stamps!

For the same reason I suggest that if Wales ever obtains independence it ensures it controls its own public banks, with the tax payers as shareholders and ideally uses a currency (punt) which is anchored on a gold or silver standard as all historically sound currencies have been. The US left the Gold Standard in 1933, although the dollar remained linked to it until 1971 when President Nixon finally abandoned it and the era of mass lending and money creation began in earnest, and Wall Street profits rocketed.

Sadly money creation also results in inflation which, as John Maynard Keynes said, is the stealthiest tax of all since most people just don't understand that the banking system is robbing them through devaluing paper money.

The Federal Reserve celebrates its centenary this year but I bet they won't be broadcasting that the once mighty US dollar has lost more than 98% of its value during their dubious tenure.

If the Welsh government ever decides to utilise any borrowing powers, it must ensure it does so through a public bank owned by Welsh taxpayers.

R TERRY JAMES Brentwood, Essex
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Letters
Publication:Western Mail (Cardiff, Wales)
Geographic Code:4EUUK
Date:Jan 7, 2013
Previous Article:No laughing matter.
Next Article:Universities in Wales face an uphill struggle in age of higher tuition fees; Western Mail.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters