Part two of the Selgin report on reserve market fixes.

It dealt with two component, foreign central bank accounts and treasury acconts.

He wants Treasury to have an efficient short term borrowing account. Great. I opens the door to something more sensible down the road, let the arograms manage their own cash flow. the facility can evolve into a systematic vertical banking system offer offer to the federal department department level. But then we need deposits to match, some departments findin depostis are needed at varying times.  Better way, says Selgin:

But there's another solution, and banks don't have to agree with it. Better still, it has already been successfully tested, thereby winning the Treasury's approval. Finally, it couldn't be easier: it consists of simply allowing the Treasury to enter directly into repo agreements with the same primary dealers the Fed itself relies upon for its own domestic repo operations. Because they "cut out the middleman" by dispensing with commercial depositories, Treasury repos would allow it to earn an overnight rate roughly equal to, if not higher than, the IOER rate.

Basically that makes the Fed a normal  S and L currency banker as it is closed and entire in the monetary zone.  Market risk is traded with all agents hold options on both sides, deposits and loans, in advance. The fed sets a conestion fee, in two directions, keeping the  and L pool optimally congested.

But we can dispense with more middle man, Treasury, and let the programs mange their own accounts.  Treasury can play the role of certified accountant, ex poste. The Senate backs the programs as with an insurance fund taken from next year's Congressional swap. Wrap the whole thing into a tight squeeze, force all parties to the pit on the shortest path..

Hence my cheat. I have New Fed contract and Constitutional Adjustment Act together. I need a guarantee to get sanity out of treasury by better, incentivized management. Then the programs have backing, can do unsecured overnight exchanges. Both issues are Constitutional crisis potentials, and we can deal with them inside the current version. As long as Due Process reaches through that system, the AOC ranting will be minimum.

The small state senators will get clue when they have that deja vu, yes indeed there is profit in proper senatorial management, the annual check is high learning.