The Bank of the Federation is not a bank in the traditional sense. It does not own, control, or dictate economic activity. Instead, it exists to facilitate exchange between independent jurisdictions — enabling coordination without central authority.
The Bank facilitates flow — not control.
After laying out the failures of the current system, the next step is obscured. We are presented with two opposing choices and told to choose. This is the work of the antagonist — using overwhelming power to limit perception, forcing conflict where other paths exist.
First let me say that capitalism, socialism, nor communism has ever existed. Using any of these thought models, as a fall back, will lead us all in the exact position that we are in today. By design.
In 2015, I was terrified that the economy was on the brink of the worst collapse in history. I was compelled to write Follow the Money.
I concluded that the only way to save the system was to create a new type of bank. In the book, I called it The People’s Bank. I will adjust some of the functions of The People’s Bank, and construct the Bank of the Federation.
The concepts are similar, but I’d like to stress that I was naive back then. It’s true, if we wish to maintain any part of the failing system we live under, then we’ll need a new bank.
But, we’ll discuss later how it’s inadequate, and what we can do to change it. In addition, I believed back then, that the markets were truly free. The antagonist will fight against a new bank, as it is the linchpin to the entire system. Everything false and fluffery will collapse and evaporate when we have our own bank. Let’s begin.
Like every bureaucracy in the Federation, the Bank of the Federation will be independent from any local government. Yet, it should be considered a government organization. As such, no taxes will be taken from the organization. It exists to perform a function, and is funded to fulfill that function. Since I’m in New York City, I’ll just say that we start it here, for example.
Since the Bank of the Federation has a relationship with NYC, there will be benefits to the association. The Bank of the Federation will have multiple levels of relations with different jurisdictions.
For example, Jakarta Indonesia wants to find out more about the Bank of the Federation. It can sign up and request data. Or, if it wishes, it can have the same relationship with the bank as NYC does. We’ll discuss this later.
The point here is that the bank will operate with the utmost transparency, and will always have at least one jurisdiction to answer to. It’s fundamentally and public structure.
As for the mission of the bank. It is to financially meet the needs of all life. This may not make initial sense, but let it sit for a while. It’s mission for local jurisdictions, is to help them wean themselves off of currency.
Another thing that you may not initially agree with. When I conceived of this bank, the simple goal was to allow humans to make micro investments, and to collectively own things.
This is what people will first understand what the bank is. Yet, this function needs to be limited. Otherwise, an individual could go parabolic in currency and crash the economy.
Any human can walk outside their homes, and see properties that they can’t afford. It’s more than this. Everyone in your neighborhood is indebted to a bank in some way. And this money doesn’t come back to the community, unless you sacrifice your life for it. By design.
Since we are considering NYC, The Federation Bank here will allow home owners to refinance their notes. There won’t be a range of interest rates. There will only be one.
For the home owner, it’s a great deal. But who is paying for this note? For now, only New Yorkers can invest in this note. Everyone will be able to invest, even in micro amounts. But for this instance, non-New Yorkers will get something other than money. More on this later.
I want to stop here, as you may have already realized that, even if someone invests one penny every month, and auto reinvested the profits, then that individual will eventually go parabolic in money.
So there needs to be further rules. I think there should be a maximum of $1.5k that a person can make per month. This is only for free cash to use. What if that individual has other bills or notes that they need to pay, that exceed fifteen hundred per month?
Let’s say that in individual pays two thousand per month in rent, for example. If the homeowner has a note with the Bank of the Federation, and they agree that this individual is a tenant and owes $2k per month, then said individual can invest in other notes, until the entire rent amount is paid.
The amount an individual can make, in currency, can increase with approved bills. In this particular case, the most this individual can make, in currency, is $3.5k per month. In this way, we create natural economic loops, and create a very stable structure.
Another function of the bank will be investments by proximity. People closer to a potential note will not only get priority, but a higher limit to how much they can own in a particular note.
Meaning the next door neighbor is allowed to buy more of a note than someone twenty miles away. Even if those individuals can’t afford it immediately, it’s still available. For example, the next door neighbor is poor, and can only afford five dollars per month to invest.
But the person twenty miles away can afford fifty thousand per month, and they invested a full fifty thousand in the property. This means that the next door neighbor is eligible to continue to buy parts of the note, until they reach the max allowed individual level, and they will be slowly paying the individual living twenty miles away, for their shares of the note.
It will get more complex with people outside the jurisdiction want a part of a note. The economy is on the brink of collapse. New York City will have to make decisions if they’d like other jurisdictions to be able to participate in its notes. It’s important to know where the money is going, and whether or not it’s coming back. It would be in the city’s interests to keep the circles tight like cheerios.
This brings us to the reason why any jurisdiction would want such an organization operating within it’s limits. How does the bank make profits?
I think thirty percent of the profits is fair and sufficient. Is the bank not for profit? Yes. What is done with the profits? All profits, in currency, are to be spent in the jurisdiction that it was made.
What those profits will be spent on will be a matter of the needs of the bank and the needs of the local jurisdiction. Firstly, if there needs to be local banks, or offices to handle bank business, then that is where the profits will go.
What happens when those needs are filled? The bank’s profits will be used for other needs useful to the bank and jurisdiction, or to create connections with other jurisdictions.
In this way, normal banking operations will be a boon for local jurisdictions.
What happens when all needs are met, and there’s nothing else to buy?
The Bank of the Federation will send the money to the local Treasury. But not to be used, to be burned.
I have a request. When they come to pick up the money, they have to sign for it and agree that “The Treasury is Freaks.” Somebody’s got to check that box.
There are many functions of this bank that we’ll discuss later. But the function of sending cash to the Treasury to be burned creates an economic loop with the host nation, and leads one step closer to a Zion styled celebration where we all burn trillions of dollars.
If the Treasury burns it, it doesn’t matter, it can print more of it. It is income for the host government.
How about we look at some examples to get a better understanding of how the bank will work?