It is becoming increasingly recognized that the world economy is headed for a major depression while Wall Street banks and corporations are receiving trillions of dollars in bailout money from the United States Treasury and Federal Reserve.
The root of the problem is that this bailout is being directed toward subsidizing asset prices not physical production—making the next financial crash inevitable.
Our Congress is obviously deadlocked in their response to this crisis so state governments must take the lead in promoting local decisions that help to direct federal monetary policy.
State governments must not make the same mistakes they made during the 2008 financial bailout through learning how to access monetary policy funds.
Politicians and candidates for public office must learn four basic methods of accessing federal and Federal Reserve monetary policy:
1. State governments can intermediate Congressional appropriations for loans and grants such as in the current CARES Act program.
2. Banks and other financial intermediaries can bundle bond and loan packages that are sold to or guaranteed by the Federal Reserve or the United States Treasury.
3. Banks can increase the United States money supply through creating loans and have the reserve requirements on these loans act as automatic overdrafts in their Federal Reserve accounts.
4. Banks can be special depositories that have the ability to receive deposits directly from the United States Treasury or Federal Reserve.
Understanding these methods creates the ability to reform or create public and private banks in each state that participate with our federal government in a way that directs new loans and grants into infrastructure, industry, agriculture, science, technology, education, healthcare, and business development.
Over 30 state governments are currently working toward accessing federal and Federal Reserve monetary policy funds through creating various types of public banks.
In Alaska, the easiest and most straight forward solution is to create a state public bank.
Our Alaska Industrial Development and Export Authority (AIDEA) is not a special depository bank or a primary dealer bank in its relationship with the United States Treasury or Federal Reserve so has a limited ability participate in this process.
The solution is to create a separate state bank that works directly with our federal government, AIDEA, local banks, credit unions, municipalities, boroughs, port authorities, villages, schools, and newly created native corporation banks.
Now that the unstable bailout of Wall Street gambling debts has started again, it is a human tragedy that our politicians and candidates are so ignorant of solutions based on understanding basic principles of money and banking that unemployment and poverty are to become the future for Alaska.
My goal is to teach these solutions, but I need your help.
Now is the time to begin a new era in infrastructure, manufacturing, science, technology, creativity, small business, and the care of human populations.
Click “like” to show voters and candidates your support for the Alaska State Bank.
