RTgovernment – a commentary on current and future trends in monetary policy

Date: 20 Apr 2015 Comments: 0

Chris WilliamsThis blog is intended to encourage thought, debate and action by governments, authorities and other stakeholders on ways to improve financial flows for populations and economic groupings.

The RTgovernment blog is produced by Christopher Williams and the RTpay team, whose experience is mainly in international payments including foreign exchange risk assessment, transaction processing, tax evasion reduction and the development of better alternatives to cash.

While we are not attached to any particular political party or ideology, we have a specific interest in seeking to assist the under-privileged, particularly those denied basic banking services and access to cost-effective money transfers.

We have worked with many government and international agencies, including the World Bank, IMF, USAID, DFID, United Nations, OECD, EU Commission and various governmental departments in different parts of the world. Much of this effort, including our ten year commitment to RTvat (the real time collection plan for VAT) has been undertaken solely as a non-profit, self-funded service.

We also have a payment processing and foreign exchange advisory service for commercial participation, including a structure to assist smaller companies to comply with new VAT reporting regulations in the European Union and elsewhere in the world.

Our views:

The strictures of the austerity programs imposed on many governments since 2008 may have had value in some countries, but are causing great strain (including massive structural unemployment) in many more at this time. A different approach is needed; we have a number of suggestions, including the separation of capital investment from short-term deficit financing, as part of the solution.

Electronic payments are still struggling to achieve a sufficiently high degree of system security, but can be the answer to many of the current problems. The creation of block chain-based digital currencies may be one solution, lowering costs and increasing reliability for all payments.

The economic power base of the world is shifting away from the uncertain divisiveness of Europe to the mega-populations of Asia – with USA’s position becoming more uncertain as political issues and over-valuation of stocks and bonds become more acute.

The rise of the AIIB (Asia Infrastructure Investment Bank) may become one of the most important changes in world economics; as will the necessary changes in the Euro, which are going to put great strain on the whole European Union.

There is a greater sense of military threat over the last two years than we have seen for 25 years.

The rich/ poor divide in many countries is extraordinary in how it is continuing to widen, despite many warning signs of this causing heightened risk of civil disobedience and justifiable resentment.

Regulation by governments has taken a new turn, with the application of ever-larger fines to banks and others being applied as part of budgetary income. This is creating a cross-current of risk negativity at a time when new technology is opening up the world.

Major companies, such as Google, Apple, Facebook, Microsoft and Ali Baba are moving to become replacement banking institutions, based on the value of the data achieved from transaction flows. This, along with similar moves by MNOs, can transform the financial world in a short time.

The over-creation of money by the central banks has set the scene for the most dangerous financial collapse in modern history. How some parts of the world manage this will decide on whether there are any winners, or just all losers.

Our comments on how companies, individuals and governments can survive – and possibly prosper from – any such dramatic change will frequently alter as conditions dictate. We will ask various guest speakers to present their thoughts to offer alternative views as well. Our colleagues at RTpay will also be available to discuss specific consulting roles as to particular requirements of any organizations, governments or companies.

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