As I pass out my newsletters to each elected official’s office, I always give two copies of my newsletter to each office because as a former Alaska legislative staff employee I know that staff like to have their own copy to read.
As I passed out Part 4 of my Alaska State Bank series, I explained to staff that my campaign is trying to access two to five billion dollars a year in federal and Federal Reserve subsidies for the capital and reserve requirements for originated loans and the problem is that the Alaska Industrial Development and Export Authority (AIDEA) is not legally a bank that can access these subsidies even though they do use “internally generated credit” in the loan origination credit creation process.
During and after the 2008 Global Financial Crisis thousands of non-banks did receive financial subsidies but following a strict adherence to established law these subsidies can be considered illegal so cannot be part of a regular financial procedure in federal and Federal Reserve monetary policy. This is the primary monetary policy reason for creating the Alaska State Bank.
As I was passing out Part 4, I received overwhelming support from most people who have looked at this issue and was told my efforts are continuing to be discussed in the highest levels of government.
One opponent of the Alaska State Bank told me Alaska should create a state bank completely outside the federal and Federal Reserve monetary policy system, but I must insist that any attempt to reform banking systems through creating state banks completely outside the current system will have no chance of survival because there are always periodic financial crises that absolutely require access to the sovereign issuer of the currency. Alaska must not create a state bank that will have no possibility of long-term survival.
Part 4 of my Alaska State Bank series has an interesting history. I started this writing project over three years ago and could not finish because I did not have the full knowledge to complete in a way that I believe would stand the test of time. I did complete parts 1 through 3 of my Alaska State Bank series that focused on money creation banking policy during those three years but what became Part 4 was the greatest challenge because it not only included knowledge of money creation but also focused on an academic overview and history of the American System of political economy in the context of foreign policy.
As an admonition to readers who have not spent much time studying banking systems keep in mind that the financial powers in the world consider the method of how bank accounting systems create new money to be their secrete proprietary knowledge and so all four parts of my banking series seem strange or revolutionary to the common person who is not specialized in the study of monetary policy.
Understanding how money is created in banking systems fundamentally changes the understanding of how political systems function and so those who vote to create the Alaska State Bank must have this knowledge.
During the three years of developing Part 4, several draft copies were circulated as a peer review process and many people commented, including multiple college professors, and then the final version was passed out to the Alaska Legislature.
Every paragraph in this essay has been endlessly researched and rewritten many times and that process gave me the confidence to present Part 4 to the Alaska Legislature as a foundational document in creating the Alaska State Bank.
