October 6 2022 11:37 PM E-paper Subscribe Sign in My Account Sign out

Heading toward world economic dictatorship

Jawad Anani
Jawad Anani is an economist, and has held several ministerial posts, including former deputy prime minister and former chief of the Royal Court. (Photo: Jordan News)
In January 2022, the US Federal Reserve asked Americans to spell out their position on what managed digital currency.

Almost five months later, the G7 held its summit in Carbis Bay, Cornwall, UK. During the meeting, Chancellor of the Exchequer Rishi Sunak proposed that all members of the G7 group replace their currencies with a managed single digital currency.اضافة اعلان

Reports and articles published in various media outlets tried to explain the meaning of the UK proposal and what it may entail.

By adopting a managed digital currency, the US dollar will be replaced by one single currency that is managed by the central banks of these seven countries. It means that there will be a platform in all of these central banks where data on each person is collected, stored and controlled by the central banks. Income earners will not be given money, but electronic vouchers which they can use to buy the articles or services permitted to them.

Thus, consumer freedom will be almost denied and each individual’s expenditure will be determined by those central monetary bodies. Of course, the accounts of each person will be kept in commercial banks, but the button to release funds or deny them will be in the hands of monetary autocrats.
This system of borrowing from the future to spend on the present cannot be sustained. These large economies will run out of debt options and must liquidate parts of their unlimited wealth to repay debtors.
What is the rationale for this anti-democratic and anti-capitalist proposal of managed digital currency? Why should the central banks of these seven leading capitalist economies be allowed to control the consumer?

The total GDP of the G7 economies is estimated at $44.0 trillion (about 50 percent of the world GDP). Yet, their total national debt is almost $60.0 trillion, or $77,000 per capita. The combined national debt of the G7 is about 60 percent of the world’s total.

This system of borrowing from the future to spend on the present cannot be sustained. These large economies will run out of debt options and must liquidate parts of their unlimited wealth to repay debtors.

Most of the borrowing comes from incomes of individuals who are forced to save with social security, pension funds, bank saving accounts and, of course, with insurance companies. Should these institutions run out of funds, the world would go bankrupt.

“The Death of Economies”, a book published in 1994, might soon regain its once high credibility.

Everyone talks about the need for a new economic paradigm. The existing models have already run their course and lost most of their validity. They teach abstract theories that do not capture the true economic behavior of the world. They are way far from how the world economy actually works.

To cumulative debts that have run out of control is dictating this shift to regional and eventually world economic dictatorship, euphemistically called managed digital currency. If it becomes part of the new world economic order, then we will need to pray hard and keep our fingers crossed.


The writer is an economist, and has held several ministerial posts, including former deputy prime minister and former chief of the Royal Court.


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