The basis of anger

I wondered about currency banking in high school, one day.

I assumed currency bankers buy and sell bank notes on the open market; and lose or gain currency in the process.  My next encounter was an undergraduate text saying the central banker creates a debt for every credit, automatically clearing regulated bankers. I dismissed the text as badly written.

Then, 40 years later someone points out how Bank of England said it, and they actually believed the debt = credit crap.  Flabbergasted, I always assumed bankers figured out counting, I was wrong. For the economists, the clue was when the primary dealers set the ten year rate, up, to accommodate the implied taxes of QE. Plain and obvious, right in front of us, an offset by some private consortia. Then observations of the charts and research by others revealed the Fed was only potent at turning points, and only because it was usually catching up.  Looking at the law we find a value added chain legalized, formalize, empowered with the job of selecting volatility so as to attract wealthy clients. We all voted for this crap!

Where do the implied currency costs go? To Congress, those idiots.

That is why each trade in Congress consists of one new insurance program and one tax cut for the wealthy, completing in two cycles.  Both parties in this are completely nuts to think they can control the central bank cycle.  There is only one solution, buy the right to coin from Congress in a 15 year contract. Pay the price and get Congress on the sidelines, get government agencies directly banking for themselves.

Who is at fault?

We decide, not necessarily by democracy.  Congress has no idea the implied liability of all that accumulated currency, the currency risk itself never measured, that was thrown away in the first step.  That leaves the mathematicians to solve the riddle.  Here is my estimate:

Since 1972 we lost, completely, about 4 Trillion in simple learning costs, figuring this all out.
Then I cost that out in the initial default of 8 T, the lost 4 T becomes true inflation, about 1% a year until the children of the millennials reconcile accounts again.  The other 4 T will be recovered, and more so, in productivity improvements due to cash flow accounting induced everywhere.

Is this flip flopping?

No, this is standard currency banking emitting a loss in the open market.  It just so happens the market is a  legislature that has never had a working velocity equation. So we pull the Fed out, as a non profit, make the deal and from then on every member of Congress can have an almost accurate velocity equation for all those government goods.  No one to blame, the defaults will be white noise, no causality. Congress can do what it wants, and they will have a hard time faking it. We can call it theory, we dunnit it before, expect to do it again.

Private currency bankers are free to compete

No change in theory, private coins do the same open market rules, run a digital auto S&L, same rules, just different bit error on the risk equalized market.  Penny Clicker can run a penny bank, no problem, borrow 20 cents to read my posts.  I will announce the down load site for Penny Clicker, just as soon  as I round up the company.