Charles E. Duncan
Alaska State Bank Advocate asced751@yahoo.com

Over the past years since the 2008 financial crisis many billions of federal monetary policy stimulus dollars have been lost by the State of Alaska due to inaction by the Alaska Legislature. Wall Street asset prices continue to receive trillions of dollars in federal monetary bailout while state governments continue to fail in their ability to access federal monetary policy funds.

The core reason for this loss is a lack of state legislative discussions about the mechanisms necessary for accessing federal monetary policy. This same lack of deliberations and legislative time constraints are now causing new federal fiscal policy funds to be directed through the executive branch instead of the legislature, thus creating a conflict that has the potential to cause the loss of federal fiscal funds.

Over the years there have been endless wide-ranging articles, PowerPoint presentations and public discussions on the alaskastatebank.net website and the Alaska State Bank Advocate Facebook page about how a state bank can give the State of Alaska the ability to access federal monetary policy funds.

Even though this information has been easily available, the ideological opponents of financial reform continue to attempt to restrict all economic policy discussions to fiscal policy while excluding all honest discussions of monetary policy.

To bring this issue into current deliberations the following abbreviated list is identified to help explain how the Alaska State Bank can create the financial mechanisms necessary to access federal monetary policy as a new revenue source for the State of Alaska.

1. Use the “credit creation” of double entry bookkeeping to increase the United States money supply using the same accounting method as all commercial and investment banks.
2. Have the Federal Reserve provide the reserve requirements for interbank transaction clearing as is the standard procedure for all Federal Deposit Insurance Corporation banks.
3. Access very low federal interest rates and direct new leveraged credit and grants toward agriculture, industry, infrastructure, education, science, technology, healthcare, and business.
4. Act as a special depository for the United States Treasury and use the federally deposited funds for the capital requirements for creating new loans.
5. Act as a primary dealer to sell federal securities to the private market and Federal Reserve.
6. Securitize state, municipal, borough, port authority and private stocks, bonds, and loans for sale to the Federal Reserve for deposit into the State of Alaska general fund and for use in Alaska State Bank capital requirements.

This list as one feature of the in-depth discussions available on the Alaska State Bank websites will help clarify the importance of creating the Alaska State Bank designed to access billions of federal monetary dollars each year.

Improving Alaska’s relationship with our federal government must become a priority. Fully accessing federal monetary and federal fiscal policy requires new action by the Alaska Legislature, including creating the Alaska State Bank.