Expatriates: A Novel of the Coming Global Collapse

“Good evening. The global financial crisis is still worsening, and its shock waves are being felt here in Australia. In consultation with the cabinet, and with industry and banking leaders, we’ve had to make some difficult decisions. For the time being, to allow the Australian economy to survive, for free commerce to carry on, and for the Australian people to press on with their normal lives in peace and prosperity, we came to the conclusion that Australia needs economic independence and self-sufficiency.

“We’ve therefore formulated a bold plan, which I’ll be outlining tonight. This plan will require the cooperation of the Australian people. We’ve always had a digger can-do spirit, a fair dinkum attitude, and our own way of doing things. The ongoing riots and the insulin supply crisis are not the key problem at present. Quite the contrary, they are merely symptoms of the massive dislocation that has taken place, and that dislocation was caused by immoderate government spending and the massive debt—both public and private. Artificially low interest rates created the illusion of prosperity and huge artificial bubbles in shares and in house prices. Clearly, the bubbles have burst. Attempting to reinflate them would be a huge blunder. The only way to restore law and order and stable supply chains is to get the economic trolley back on its tracks. For our economy to recover and to thrive, it will require some hard work and imagination.

“I’ve directed the Reserve Bank of Australia to cease production of all banknotes for a period of four years. Unlike many other nations which are suffering the ravages of mass inflation, our people need the assurance that we will have a fixed money supply. And with the advent of polymer notes, it is realistic to think they will hold up in circulation for four years. At the end of that four-year period, new banknotes will be produced, but strictly for the purpose of one-for-one replacement. We will have zero banknote inflation. Zero.

“The Commonwealth of Australia has the agricultural strength, the mining strength, and the industrial strength required to be fully independent. Adapting to changing circumstances will at times be painful, but we simply must prepare ourselves to go it alone. Loss of jobs and industry began with Gough Whitlam and the Lima Declaration. The exigencies of an independent economy will reverse that trend. We need a free market and a level playing field.

“Settlement of all outstanding foreign trade contracts will be left up to the best judgment of the parties involved. If our own government is a contracted party, then we reserve the right to settle in Australian dollars, in gold, or in foreign currencies as we see fit. Our trading partners, particularly in APEC, will need assurance that they can continue to trade with Australia with confidence.

“The assured flow of some trade goods such as pharmaceuticals will require government intervention in the short term, but in general our approach will be to let free market economics prevail. In free markets, prices reach equilibrium with astonishing speed. Let’s just let the free market work, shall we?

“Next, I have ordered the immediate repatriation of all of Australia’s national gold reserves from the Bank of England. Our current reserves are just over eighty metric tons. A small portion of our gold will be immediately repatriated by air transport, but the rest will be coming by ship. Rest assured, it is all coming back to Australia as soon as possible.

“We will establish a fixed rate of exchange of ten thousand Australian dollars per ounce of gold, and one thousand Australian dollars per ounce of silver. This might sound arbitrary, but it is in fact far less arbitrary, far less capricious, and far less fictitious than what we’ve witnessed with currencies and finance in recent years. We were living in a financial fantasyland, and we need to definitively set that behind us.

“The Aussie dollar will become fully convertible to gold and silver in a program that will be phased in over a period of three years. Under our bimetallic plan, we will adopt a fixed ratio of ten ounces of silver per ounce of gold. This ten-to-one ratio will encourage the production of silver, which will be needed for the purpose of minting new silver coinage next year.

“A variety of new gold and silver coins ranging from one-twentieth ounce to one ounce will be minted starting next year. These new coins will include a hardening alloy to make the coins hold up to the rigors of circulation.

“Within eighteen months, every bank in the Commonwealth will be equipped to exchange gold and silver with their customers. Once in place, gold and silver can be exchanged for either polymer currency or silver or gold coins upon the demand of the customer. The minting costs for the new coins—the seigniorage—will be paid by the government. These bank metals windows will be able to accept everything from gold nuggets and gold jewelry, to soft gold koalas and silver kookaburras, to pre-decimal silver coins and exchange them directly for the new hard gold and silver coins once they are available. A new large cupronickel penny will also be produced to make small transactions more practical.

“The present-day coinage will become obsolete in twenty-four months. But banks will be required to exchange the old coins indefinitely for either polymer notes or like value of the new coins. The defunct coins will be recycled, providing useful commodities for industry.

“Australia has traditionally been thought of as a gold producer, but we also have reserves of seventy thousand tons of silver. We are now the world’s fourth-largest silver producer. The new currency regime will encourage an expansion of gold and silver production, with much greater profitability for miners. And with the stability provided by a fully convertible bimetallic currency, everyone wins.

“All but one of our foreign exchange markets have been temporarily suspended. The exception is New Zealand. We are in consultation with the New Zealand government, encouraging them to adopt a similar bimetallic standard. As for our many other trading partners, exchange rates and mechanisms will be reestablished one by one, only after thorough investigation and consultation. Most rates will be free-floating, but a few rates will be fixed for a period of two years. We will take steps to ensure that all key commodities continue to be imported to keep the wheels of industry turning.

“We have a few immediate goals: First, we must concentrate on law and order. We have taken steps to assure that. Crime and wanton destruction of property will not be tolerated.

“Next is national self-sufficiency. Publicly owned ground in agriculturally suitable regions will be sold off to encourage small-scale agriculture. Even some public lawn areas will be made available for community vegetable gardens for a period of six years. I most strongly encourage private landowners to also convert their lawns and flower gardens into vege gardens. Australia can and will be food self-sufficient.

“Oil and natural gas exploration will be encouraged, as will further development of the Coober Pedy shale oil deposits. Many environmental regulations will be temporarily suspended to assure food and energy independence. Development of renewable energy resources including wind, solar, geothermal, and hydroelectric will be encouraged through tax breaks and a few modest subsidies, particularly to encourage the development of the domestic capacity to produce photovoltaic power panels. Australia can and will be energy self-sufficient.

“We can do this, Australia. Yes, there will be some shortages. Yes, there will be some redundancies. Yes, there will be some challenges. We merely have to set our minds to this and make it happen. I am confident that with God’s providence, we can and we will. May God bless Australia.”