NewOldMoney Bookends at the FED
Today all money other than coins and currency ends up being created via the fractional reserve system run by the FED (Federal Reserve Banks). It was not always like this.
Before the FED going back to Benjamin Franklin.
Before the FED going back to Lincoln and the use of the Greenback Dollar
At the time the FED was created, 1913, the private sector had to fool the public sector into thinking that the banks became a part of the public sector. This was after JP Morgan actually performed as the central bank. It was no big deal as the legislation passed with congress in a hurry to get out of town.
At the time of the great depression when capacity constraints tipped us into a depression the strong arm manager of the FED had passed away. Nobody understood the capacities and the FED became unable to demonstrate the courage required. It failed the nation.
At the time of the great recession when capacity constraints could have tipped over the economy in 2007 to 2009 the courage was being demonstrated every day and congress had to basically let it happen because they could not get time and talent worked into helping with a solution. The US Treasury helped.
We are not looking to visit the histories of the Federal Reserve Banks and the workings of the Board of Governors and Monetary Policy. We know it is beyond us in the details but on the surface, based on the actions of 2007 to 2014 we know that Urban Mom is getting the short stick. Nobody is looking to reset her positive expectation with the changes to make a difference for her economic grow. The potential of her youngest children missed a bailout given to most Americans by the FED in spite of the 1977 Community Reinvestment Act that gave it all the information it needed to act.
She is stuck in generational poverty where our public sector actually works against individualism and the accumulation of assets and attributes based on individual outcomes. Urban Mom could be motivated to grow her children and put the education gap behind her and her children over several decades. We have a plan to share with her and it is totally delivered by the private sector alongside what is being delivered at no better than good quality in the public sector.
The USA is starving the systems that support urban mom and her everyday life in the sense of a capacity constraint. More throughput of really ready to read children before the age of 6 could be created. The private sector has more money than god, that could be used as monetary policy for this focus, without any budget constraint or new money constraint. The FED never gave up its private sector roots and status as it relates to monetary policy. It hides itself as a part of the public but really is more private than not and allows the public sector to believe it has control over the money supply. That private status has been hiding; but it was never turned over to the public sector. In fact it is a direct pipeline to the private sector. It is the private sector proxy where there is more money than god.
It controls a capital source of funding that does not need to be paid back because the money could not be spent under the law for anything but monetary policy. And if the money is spent for monetary reasons like a base to interest rates there is no way to stop its benefits to society. Urban mom struggles under a constraint, that is not real. If the money was spent as a part of micro monetary policy from the private sector there would be no other early childhood investment to make. The public sector has its programs (they would not be stopped) and the private sector within urban communities would have this program of activity based individual learning to the highest best practice quality definition and outcome. Of course this would be based on proven results and mentored skills delivered one size fits one.
The norm would be spending $10,000 per child, $5,000 each year, for 2 years for a present value positive expectation of $500,000 measured as of age 5-6 because the child has become really ready to read before kindergarten. Remember Urban Mom is looking for a way to prevent the education gap from even starting if she could become influential. This would take 20 billion dollars per year for 20 years, but it might actually need to be delivered at a lesser level for 30-35 years because it takes time to get to full capacity all over the nation. There is no time to waste. This spending is small in the sense of the Federal Reserve Banks and Monetary Policy, but very big in the sense of the private sector finally doing first things first because the public sector does not have the ability to do it.
The new money comes from we the people without reference to anything. It is just like the payment of the North’s Soldiers from nothing. Payment is from the equity accounts of We The People. OR it comes from excess profits that cannot be spent by the Federal Reserve unless they are spent as Monetary Policy. Stay on this. Don’t get off of it. This is the solution. The nation only needs a 5th of the money available in a year of excess earnings as a result of their monetary operation.
What is the NewOldMoney gift? The message is that a child must be really ready to read. The message is to be made impactful simply because it precedes a gift from the private sector. This gift is more than two times blessed because it has a given economic path to generate unlimited monetary outcomes from a very steady local velocity of productivity in learning as a part of the economy. A productivity increased with an 85 year arc to the future. In the end it does not need to be paid back but it could be paid back at least 4 times with the gift counting as the first two times.
- First the spending for readiness is within the culture in the local economy and it will demonstrate a velocity.
- Second, the money to spend comes from a gift, funded by the private sector ownership of the Federal Reserve. This money would go back to the Treasury if it were not spent on ERSD-RA. The gift is not paid back. It is a plus to the economy.
- Third, the gift after it is spent is restored to cash by the private sector so it is like it was never given away by the Reserve Bank. Associations of Business that lobby local, state and national governments regarding business regulations see to it that the money is restored. These associations at the highest levels negotiate with the government units to remove duplicate regulations and all other regulations and credentialing in the way of job creation for their industry and the consumer population at large. The need to reduce regulation is assumed even if there is some increase in risk. The reduction in “regulations” target all but especially small business. The effort is searching for real cash savings and making that search visible.
- The United States Federal Reserve Bank has the private sector ability to give the gift of growth to create a New Grand Bargain with Urban Mom covering economics, education, emotions and ethics. We can assume there will be more elements of self-regulation — based on 100% reading readiness before kindergarten. It is the direct trigger to more civility and less laws.
- Fourth, the school district uses the 100% delivery of the “advanced child” to save money as the child tranches through the K-12 grades. A portion of those savings equal to the cost of the gift from the private sector are in turn celebrated and gifted to the local business development corporations and organizations that want to join at the hip with the district, mayor and community, faith base and business segments to create jobs, jobs, and more jobs.