The member bank tax rate

The difference between the red and blue lines gets balanced by remits back to Treasury, a rate cut on loans, a  Fed siengniorage tax acceptable to member banks. The member banks are increasingly will to pass down a seigniorage tax to the middle class.

The member banks can supply the liquidity needed or pay the siegnioage tax, member banks decide.

The seignioage tax gets passed down, likely get paid by ATM and other bank fees. I call  the tax the ATM Fed monopsony fee.  As the banks accept the tax, they lose accounts and close branches, automating the tax collection at the ATM stands.

The whole concept is about taking banking away from the little folks and using it entirely to cover the deb service fees Treasury pays, compounded by the net take by the primary dealer system. A good name for it is the cost of socializing the economy and lays bare the fundamental problem, the progressive left is killing poor people.  A war crime, actually.

Why separate the seigniorage tax and the rate cut? Because the primary deals do not quite know the split, they are regulated to be one step removed from decisions made in their regulated partners.  So it is a two step process., meaning is is a betable loop, we will cycle.  The total size of the balance sheet is about equivalent to the amount of liquidity stolen from poor people, about a third of that stolen loot passed directly onto the wealthy via the primary dealers.  The entire scam engineered by progressive boomers, as a matter of fact.  Part of the 'This time is different' fraud.

That is why I hammer AOC on this, her progressive buddies, like Bernie, are gone, retired after the election leaving her with this mess and she is very badly advised. Bernies economic adviser is some kind of delusional dingbat. She is stuck in a scientific wilderness left by the likes of Bernie, Pocahontas, and Nancy. Nancy is retiring soon, the only thing she will do is bribe AOC for one more primary dealer deal, then retire.  We are all awaiting to see if AOC gets scam on this once again.

This is a forty year attack on poor people by progressive boomers. But they miscalculated on the sudden stops they introduced, mainly because the smaller states get crushed sooner and they control the senate  People like Tom Cotton of Arkansas cannot understand the problem, they they can see right away there their state is flailing and failing.