The new monetary standard

I have pointed out in previous posts.

The Fed monetary standard is the staffing costs of the  TBTF.   That was part of the deal with IOER, use it to insure the TBTF can support staffing costs and avoid literal disappearance.  It was a job savings effort, the main and known side effect.

We can see this because the Fed  'corridor' between loans and deposits is fixed to its own expenses. A Fed denominated paper says, "In economists with mail order degrees we trust". The back side says the central bank will guarantee staffing for any member bank.

The fixed corridor runs up and down the short end searching for the proper pay back interval, the cost to us of supporting the system, the ATM fee. It prices the term interval, not the staff count.

Three color trading removes the debt cartel, it makes rate rigging a priceable stream.  One way or the other, default, three color pits, the sandbox replaces the debt cartel.  In the competition, the cost of government ebt to the individual becomes more readily apparent.