Now that the election has identified a continued Congressional stalemate, and the world economy continues to slide into a major depression, it is time for state governments to redirect the federal monetary policy currently bailing out the excessive speculation of Wall Street.

The same financial methods that are attempting to maintain nonproductive debts can be used by state governments to direct financial credit and grants into productive employment, infrastructure, agriculture, industry, science, technology, education, small business, and the health of populations and our natural world.

Cutting budgets and the Permanent Fund Dividend and punishing populations with income, property, and sales taxes are not solutions when a multi-trillion dollar stimulus is available through public and private credit creation, the United States Treasury, and Federal Reserve.

State governments must relearn one of Benjamin Franklin’s most important lessons that new money can be created in private, federal, and state banking systems.  Historically, the United States developed a credit creating “dual banking system,” where banks that increase the money supply are chartered and regulated through our federal government and state governments.

Now that private credit suffers from excessive speculation, and our federal government is politically stalemated and unjustly bailing out gambling debts, it is now time for state governments to reassert sovereignty over banking systems.

State governments must restart productive credit using the local credit assessment decision-making process that redirects the federal monetary policy bailout into physical production and the requirements of human populations.

Currently, many of our politicians restrict their knowledge to fiscal policy and the principles of money and banking are excluded from their consideration.  These are the ignorant politicians who must be confronted about their lack of knowledge of how the American System of political economy actually functions.

Understanding taxation and spending in fiscal policy is important but having the ability to analyze and reform economic systems through monetary policy which examines how noninflationary money can be created and directed is the most important.

In over 30 states, political leaders are realizing the primary importance of monetary policy and are refusing to accept the same monetary policy mistakes made during the 2008 Wall Street bailout and are now working toward creating various types of public banks.

In Alaska, creating the Alaska State Bank is required to develop financial relationships with the United States Treasury and Federal Reserve through:

• Acting as a special depository or primary dealer bank,
• Accessing liquidity facilities and automatic reserves in the credit creation process,
• Originating and intermediating low interest loans, bonds, guarantees and grants,
• Securitizing, buying, selling and holding loan, bond and share packages,
• Leveraging with other loan originating institutions.

The Alaska State Bank will begin as a large and small project infrastructure bank that is founded with monetary policy stimulus funds and will evolve into a full featured credit guidance development bank as knowledge, transactions efficiency, and relationships mature in the future.

The long-term banking goal is to have a stable source of financial assistance for the State of Alaska, municipalities, boroughs, villages, educational institutions, and port authorities—and to help create new native corporation banks and credit unions.

The Alaska Industrial Development and Export Authority (AIDEA) is currently assuming some of the features of a state bank but can never legally be a special depository or primary dealer bank in its relationship with the United States Treasury or Federal Reserve.  Alaska’s solution requires creating the Alaska State Bank to work in concert with AIDEA and our federal government.

The current Wall Street bailout that is failing to stop the onrushing depression is only benefiting a few at the top of our economic system and will eventually collapse like all financial bubbles in history.

The central question facing our state and nation is whether this bailout process can be redirected to create long-term prosperity that benefits all populations with rising living standards.

Help end the economic depression by showing your support for the Alaska State Bank and help teach our politicians the basics of monetary policy through clicking “like” and sharing.