Competitive Currencies

The Structure of the Monetary Policy

Competitive Governance within every geographic jurisdiction
Currency is a service of facilitating trade from free enterprise’s invisible hand keeping a ledger that facilitates one-sided provision, yet two-party agreed-upon trades at different times, at different values, and the services provided coming from the universe of all traders in proportion to each person’s provision into that same universe.
Sound money is far superior to government-created paper without inherent value. Sound money is a certificate of ownership of items of real value such as land, stocks, bonds, commodities, and precious metals.
Currency is a service that allows people to trade a universal good for a specific product. The free enterprise system provides the best services
Haley2024 calls for about a dozen Financial Competitive Regulatory Agencies that regulate their member banks to issue their own currency.

The Basic CRA Structure

All the bullet points of the CRA Structure apply to this Monetary Policy. These are just a few of the CRA bullet points.
Monetary policy will occur within Sector 19: Financial - Banking.
Every bank must select and become a member of a Bank CRA.
Members vote on their CRA leadership.
A Banking CRA only regulates its member banks.
Original-Authority is at the state CRA Structure.
Original-Authority is at the CRA level.
The competition of currencies will bring free enterprise accountability.
The Rating System will be valuable in giving high-quality information from a wide variety of perspectives on every issue.
Creating a Monetary-Currency Asset Portfolio M-CAP
Each of the roughly dozen state-level Bank CRA’s creates its own distinct M-Cap.
An M-CAP is started by a Bank CRA collecting a portfolio of assets from its member banks to back up its currency.
CRA Currency: defined as currency issued by an M-CAP.
New CRA Currency is created based on the assets collected by banks and secured in an M-CAP.
That new money is deposited in the customer’s bank account based on the assets they deposited into the M-CAP.
All assets in the M-CAP are owned by the owners of the CRA Currency.
A customer’s CRA Currency is not tied to the specific asset they deposited into the M-CAP.
The CRA Currency is a digital certificate of ownership of a percentage of all the assets in an M-CAP.

The Operation of an M-CAP

Buyers and sellers will exchange the CRA Currency in the regular economy.
The owner of the CRA Currency always has the ownership right to exchange the appropriate amount of CRA Currency for any asset in the M-CAP.
As more assets are added to the M-CAP, each unit of CRA Currency is worth a smaller percentage of the M-CAP to accurately keep the worth of each unit of the CRA Currency the same.
As more assets are removed from the M-CAP, each unit of CRA Currency is worth a larger percentage of the M-CAP to accurately keep the worth of each unit of the CRA Currency the same.
New CRA Currency is created based on additional assets deposited in the M-CAP.
CRA Currency that is traded in for an asset from the M-CAP becomes worthless because the worth was taken away from the M-CAP.
The unit of CRA currency turned in for an asset vanishes.
The holder of CRA Currency has the right to pick any appropriately priced asset in the M-CAP.
Many locations in every city will have assets from the M-CAP for easy accessibility.
Every unit of CRA Currency derives its value from assets in the M-CAP.
The value of a unit of CRA Currency is the value of the complete M-CAP divided by the number of units of CRA Currency issued.
An M-CAP with $100 billion of assets can only create 100 billion units of their CRA Currency. $367 billion of assets warrants 367 billion units.
If a loan is an asset in an M-CAP, the CRA Currency turned in as loan payments will vanish because the value of the loan is reduced by the same amount as the loan payment. The new currency was created for a loan; thus, all that new currency must vanish as the loan is paid off. The interest paid is for the cost of servicing the loan, a risk pool, and profit.
If people traded all their CRA Currency for assets, the last unit of CRA Currency would take the last asset from the M-CAP.

The Backed Dollar (BD) and Syncing the Values

With roughly a dozen M-CAPs per state creating their own CRA Currencies, there would be a desire to sync the unit value of all the CRA Currencies.
The federal-level Bank CRA Sector Board will acquire digital CRA Currency proportionally from all the state M-CAPs as the base of the Bank Sector Board’s currency, named the Backed Dollar (BD).
The BD is the average of all CRA Currencies since the BD proportionally holds CRA Currency from all M-CAPs.
All M-CAPs must standardize the value of their CRA Currency units to the BD.
The BD will initially target the current value of the US Dollar.
The BD will be the currency of physical paper and coins, while all the CRA Currencies will be digital. CRA Currencies may be anonymous.
The marketplace will post prices as BD.
The value of an M-CAP adjusts daily as the value of every asset in the M-CAP changes in the trading markets.
As each M-CAP adjusts in value, each CRA Currency unit’s worth will diverge from the other CRA Currencies.
The number of CRA Currency units per M-CAP will need to adjust daily to keep all the CRA Currencies synced in value across all M-CAPs.
All M-CAP CRA Currencies will sync in value by constant adjustments to the BD by adjusting the number of units of CRA Currency per M-CAP.
The worth of all M-CAP CRA Currency units must always match the BD.
Having all CRA Currencies synced in value allows more natural exchange with different CRA Currencies.

Gain and Loss

An M-CAP adjusts in value in two ways. First, it can gain or lose assets. Second, existing assets can gain or lose value.
An M-CAP will continuously be gaining and losing billions of dollars of assets daily.
The rest of this section deals with existing assets gaining or losing value, such as gold or stocks adjusting in the trading markets.
If an M-CAP gains value compared to the average, that M-CAP gains units of its CRA Currency.
If an M-CAP loses value compared to the average, that M-CAP loses units of its CRA Currency.
The owners of CRA Currency do not lose or gain what they own. What they own, loses, or gains value compared to the average of all assets in all M-CAPs.
The owner of a unit of CRA Currency still owns the same percentage of the assets in their M-CAP.
If an M-CAP loses 1% of value compared to the average of all the M-CAPs, then those holding that M-CAPs digital CRA Currency lose roughly 1% of their units of CRA Currency.
An M-CAP valued at $100 billion BD has 100 billion units. If a person holds 100 units, they own one-billionth of the M-CAP. If the assets in the portfolio increase in value to $101 billion BD, the person still owns one-billionth of the M-CAP.
In order to keep the price of the currency synced with the BD, this portfolio can now offer 101 billion units. The person holding 100 units yesterday will now hold 101 units today.

M-CAPs Settling Up

All banks and all merchants must take any of the M-CAP CRA Currencies.
At the end of the day, all banks will have CRA Currencies of all the other M-CAPs.
The roughly dozen state M-CAPs times 50 states mean approximately 600 currencies.
All M-CAPs will have an account with the federal Sector Board.
All M-CAPs will send up all currencies other than their own to the federal Sector Board.
The federal Sector Board sorts all currencies and sends back currencies to the correct M-CAP.
Every M-CAP will be ‘light’ or ‘heavy,’ meaning received back less or more than they sent up.
M-CAPs transfer assets to each other to match differentials.
The Federal Sector Board must treat all M-CAPs the same with little subjective determination; the Rating System uses subjective determination when they authorize the M-CAPs.
The owners of CRA Currency do not lose or gain what they own. What they own, loses, or gains value compared to the average of all assets in all M-CAPs.
The owner of a unit of CRA Currency still owns the same percentage of the assets in their M-CAP.
If an M-CAP loses 1% of value compared to the average of all the M-CAPs, then those holding that M-CAPs digital CRA Currency lose roughly 1% of their units of CRA Currency.
An M-CAP valued at $100 billion BD has 100 billion units. If a person holds 100 units, they own one-billionth of the M-CAP. If the assets in the portfolio increase in value to $101 billion BD, the person still owns one-billionth of the M-CAP.
In order to keep the price of the currency synced with the BD, this portfolio can now offer 101 billion units. The person holding 100 units yesterday will now hold 101 units today.

Assets of an M-CAP

Anything an M-CAP accepts as real value can be an asset in its M-CAP.
Gold, stocks, bonds, real estate, commodities, loans, among other items, have real value.
Many M-CAP models will emerge. Likely, one M-CAP will only allow gold as an asset, while others will venture out to new ideas.
All M-CAPs must completely list their assets on a spreadsheet on the BD website.
Every asset must list a price/value.
The total value of an M-CAP must match the sum of the value of all assets.
The number of CRA Currency units issued must match the entire value of the M-CAP delineated by the BD.
There is a blog at Haley2024.org: An Example of a Monetary-Currency Asset Portfolio M-CAP
This blog shows how new CRA Currency is created and destroyed for a home mortgage, increased Human Capital loans, products in a store, Commodities, loans, future tax revenue, Charity Economy capital, infrastructure, Military Corporations, among others.
Keeping the Value of the Assets Honest
All assets MUST be exchanged at the listed price/value.
Arbitrage opportunities will keep every M-CAP honest, relating to the value of its assets.
Assets in trading markets would be natural to price.
If enough people sell an asset short, meaning that they are betting the asset is overvalued, they can force the sale of the asset. The M-CAP will lose double the margin of decrease or gain double the margin from the increase.
If an M-CAP sells too many assets under its list price, their ratings will fall, and they would be forced with Rating Floors to increase their accuracy.
The greatest check on dishonest evaluations of assets within the M-CAP is losing customers and business from member banks.
The Federal Sector 19 Rating System, working through the state Rating Systems, has the role of approving M-CAPs.

The Federal Reserve

Each Bank CRA will be its own central bank, regulating its member banks.
The Federal Reserve will split and become a dozen Bank CRA’s and the Bank CRA Sector Board separately and independently in the transition.
Each bank will decide which Bank CRA to join and then vote on the leadership of their Bank CRA.
All members of Bank CRA’s send representatives to the Bank CRA Sector Board.

The Current US Dollar

The current US dollar will vanish through the transition.
Current US paper and coin need to be turned in to all the Bank CRA’s within one month along with digital US dollars so that the FED can assess total outstanding units.
A portfolio of assets such as Federal Reserve gold, federal land, among other government assets, will bring the worth to current US Dollars.
Many US dollars were created to cover mortgages and other loans. These loans have real value, thus an asset.
The Federal Reserve owns many assets such as US Treasuries, mortgage-backed Securities, Repurchase agreements, Federal agency debt securities, loans, Money Market Mutual Fund Liquidity Facility, among many others.
These Federal Reserve assets will be deposited into M-CAPs. The CRA Currencies created from these assets will be deposited into the accounts of the people that turned in their US Dollars.
If additional assets are needed to bring full worth to all of the US Dollars, the assets of the promise of future tax revenue should be proportionally created by the states’ Parent Sector Boards and deposited into M-CAPs.
Repayment of loans currently delineated in US Dollars will transition to an asset within an M-CAP delineated in the BD.
The current US Dollar will vanish as it transitions value to the new CRA Currencies and the BD.

Competitive Currencies
Sector 19. Financial – Banking: regulates banks and issues (Competitive Currency)

About 450 words. A fast read to understand all the reforms.

INFLATION CAN NOT HAPPEN IN THE STRUCTURE ENVISIONED
HERE