Last time our super hero, the World Dictator of Steel, was battling corporations and tax codes. Wham, bam, zoowee, gadzooks the job goes on. The idea is that we need to deconstruct society into smaller groups. Large cities are nice but only up to a manageable size. New York City is not manageable in any sense of the word. Large corporations are not manageable in reality. Does the CEO of General Dynamics knows what the shop foreman does on the floor or his boos, for that matter? The optimum group size is about one hundred and twenty individuals. That is the size of a rifle company in the Army or Marines. Think about that for a minute, do you know over one hundred individuals? I’m a believer in small groups and even very large corporations are organized into small groups. Imagine then, if work could be subcontracted to partnerships of individuals who were contracted to do specific work. A partnership allows the individual to form close bonds with others in the group. It also sponsors a sense of competition in that one must always strive to do well, perhaps better in some way than the others. But is also requires a sense of cooperation and a sense of reliance with and on others in the group. Individuals are allowed to maximize their self interest by maximizing their contribution to both competition and cooperation. This concept will not cover all applications but it will come very close. Just as it takes more than one company to make an army so in that sense, it will take more than one partnership to perform large scale projects.
Let us turn our attention to banks since they have helped to get us into the present financial mess. Banks are necessary to society. They provide the funds necessary to do business in an economy that relies on currency. They are a depository of our individual funds and a dispenser of currency when needed. They exist to rent money. They rent money from the depositor in the form of savings and checking accounts. They rent money to borrowers in the form or loans and mortgages. They also rent money to investors. That is, funds may be needed for certain types of transactions that require very large amounts of money and local banks would then pool these sums for a fee and share of the interest. If you open a savings account you should be paid a fair rate of interest on the money you deposit. If you open a checking account you should be charged a fair fee for the processing of your checks. You should also be able to use electronic transfer which should never cost more than a few pennies per transfer. I believe in the pay for what you use system since it keeps people honest. Start offering freebies and people want to start cheating their way through life. If there is one supreme rule or law of the world every child should be taught it is: There Is No Free Lunch! God is love and be nice to your mother is all very well, but no free lunch is the most essential. Banks also need to be partnerships. And these partnerships need to be local. All banks will be state chartered and will do business only in the state in which they are chartered. Wells Fargo can have a Wells Fargo of Texas and a Wells Fargo of New York, but they cannot operate as a single nation wide bank. Banks will be allowed to have branches in as many cities and towns in that state but each branch must have its own local partners for bank capitalization. This is community ownership of banking services, pure and simple. There will still be limits on how much capital a partner may risk in the bank. I would say that the minimum number of capital partners should be at least 100 and may be a maximum of 1000.
Banks earn money through other business practices such a acting as estate trustees. They may act of your behalf to operate foreign exchange transactions and charge a fee that covers such an expense to them. Frankly, I don’t want banks operating foreign exchange desks as it is high risk enterprize. Our very large too big to let fail international banks now engage in that game and try to play screw the customer. No, I would make it illegal for any bank to be international except for one bank. The central bank of the country, owned by the people and regulated by the federal government, would have the authorization to trade in foreign currencies but only for the business of providing the state banks foreign currency upon request. Each State would have its own central bank of the state. These state central banks of the state would be the ones that finance the improvements to state infrastructure projects, city infrastructure projects, and other capital requirements. All city, town, village, and county governments will not be allowed to issue bonds or contract loans except from the State central bank of the state. This reduces the amount of money any local or county government can spend at any one time and it must compete for funds with all the others local governments. This reduction of funds means that it would very difficult for any elected politician or any party to erect monuments to themselves or personal fiefdoms. We don’t need high schools built for several thousand teenagers complete with pro-like facilities and the culture to match. Keep schools small and you can keep classrooms small. You also keep children engaged because they aren’t treated like numbers. The teachers and other adults all know every child and there is little opportunity for bad behaviors such as bullying, drugs, and other actions. And smaller schools encourage more physical activity to keep both students and adults active. Next time I wll go into more detail about our education system.
The point here is that money that is earned locally and spent locally should also be invested locally when ever possible. There will be times when the need for funds from extra local sources is appropriate. A local area that is growing more rapidly that the population will need more outside funds and to insure that such growth is not due to speculation the State central bank of the state may direct that interest rates on funds borrowed in that local area be raised accordingly to encourage slower growth rates. The state central back should monitor the growth within ins state boundaries and set lending rates as appropriate. This allows some control over the issue of credit. When credit is too expansive then debt becomes a threat to the community and to the state. The state central bank is the second bank of resort, the Federal central bank is the last lender of resort. It should concern itself with monitoring the state central banks and indirectly the private banks in each state. It will finance all national infrastructure projects and improvements. It will not issue any bonds or other indebtedness, all projects will be on a pay as you go process. If existing ports need repair or improvement, then this should be done by collecting port fees from those who use the port. No free lunch. Interstate highways should be the same way. Everyone who uses them should pay a yearly fee according to the type of vehicle. Utility services such as water should include the consumption fee (how much water was used at what cost) and s delivery fee that goes for maintenance of the water deliver system (pipes, reservoirs, treatment plants).