Monday, 29 February 2016

The Bank of England should look beyond the City of London

 Maybe this Blog  sees no real alternative to Independence if Wales is going to prosper  and not be one of the poorest "Regions" of the UK.

I do not think Federalism will work  as if powers were devolved to the English Regions , Wales Scotland and Northern Ireland will still be claiming  National Status  and Cornwall's claims would probably be ignored with them being absorbed into s South West Region,

And I don't see a Federated UK working as Wales , Scotland  Northern Ireland  and England  Federation would have to see the first three have some kind of veto , to prevent them being outvoted by England

But if we are really "Better Together" then our voices should be heard.

Wales Online  has news that Jonathan Edwards fears that in a future crisis taxpayers could once again be forced to bail out the banks.
Chancellor George Osborne last week warned that the “storm clouds are clearly gathering” in the world economy, admitted that the UK economy is smaller than had been thought, and said that further reductions in public spending may be made in next month’s Budget.

Plaid’s Mr Edwards said:

 “Many economists are speculating we are currently entering the third and deadliest stage of the Great Recession which began with the banking crash in 2008. The first stage was the collapse of Lehman Brothers which led to a contagion effect throughout the banking system of the developed world. The second stage was the crisis in the eurozone.
“It appears we are now entering a third stage with the rapid slowdown of the so called emerging economies. Unfortunately, due to the globalised nature of the financial system, banks based in the City of London are highly exposed which explains why equity markets have had their worst start to the year since 1929.”
....“There is no doubt that the global economic skies are darkening. The big question is will it result in overbearing pressure on financial institutions based in the City and what would then be the cost to taxpayers in Wales and the rest of the UK

... “the Welsh public have been paying for this bail-out in reduced wages, reduced living standards and decimated public services.”
Pushing for a true split between the retail and investment wings of banks, he said: “Banking bailouts can only be justified to protect the deposits of hard working people as opposed to spivs in the City effectively gambling on high risk products...
“If there is another crash leading to another bailout there will quite rightly be public uproar.
 Mr Edwards wants to see Welsh representation on the Bank of England’s Monetary Policy Committee, Financial Policy Committee and Prudential Regulation Authority.
Such a representation, could  remind those who believe that their  belief that , What suits the City of London" does not necessary suit the rest of the UK and I am including the North and South West of England in this.

 We are stuck with the British State for now , Scotland may well find its own solution by becoming Independent  in the next  few years, But for now our future economy relies on people who can't see the effect of their decisions  happening beyond a square Mile in London.

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