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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