Instructions to socialize the U.S. monetary system.

Let us imagine the financial system worked differently.    If the power to print paper money were given to the states then the federal government could be able to finance expenditures through borrowing from the states, who print the money.   This would be ideal in many ways.

1. It would empower the state governor to have control over financing aspects of bills passed by his respective senators.  State senators would be obligated to bargain with their state governor for financing and it would tighten their relationship.   The state governor would be responsible for maintaining the stability of the printed money from its state.    If a state, such as California, needed to create money to finance state expenditures it could borrow from another states treasury or buy bonds to the federal government to use as reserve in printing more of its own money.

2.  The Federal government would no longer be able to raise money except from borrowing.  Gone would be the single banking system that runs an unchecked monopoly that hides what happens behind the curtain.  The federal government would have to convince congress to buy its bonds or raise the federal tax in order to generate huge financing.  Massive concensus would be needed for such things.  No longer would our country be controlled by imperialists.   Instead, democracy would rule everything because each state would have to dig into its pockets and show its responsibility to a cause.

3.  States would compete with each other in the money market.  Every state would want its money to be the money of choice for people to hoard and save.   States who had problems and deflated the value of their money would have to improve the value of their money in order to convince the people of the nation to use its money in trade.   The Federal Reserve Bank could then be delegated to manage the state to state trading of money, like a stock exchange, and keeping track of state exchange rates.

4.  Let each state set and control its own interest rates and loan fees.

This would be a much improved system that will be much more stable.  The great boom bust cycles in the economy would be gone because when a few states have financial troubles the other states can pick up the slack.

Just an idea that everyone should think about.