January 25, 2017 - Hamilton Institute

The greatest challenge to the United States Post WWII and the Post Cold War era where the U.S was in deep competition with the Soviet Union. The issues of threats changed from being external to now being internal. The evolution of Globalization/Americanization has contained threats and challenges. Challenges that the United States had to call upon its population to enlist/commission in its armed services and sometimes tragically give life and limbs to values that are enshrined today. In the first post, I explained the net gains of consolidations of institutions to expand the power of markets in the Continental United States.

With the transformation and evolution of the global economy in the 21st Century. Reforms are needed to keep up with the pace of change and adapt to the world where changes are happening whether you like it or not. The U.S. is at a point in its history where the right decisions and investments are made. We could be talking about the next American century and the concept of the true Pax Americana where the world is less focused on warfare and the concept of commerce, eCommerce, and science. This will help the U.S. compete in the next coming century with more players in the game. (China, India, Latin America, the Middle East/North Africa, and Africa)

The concept of Regional Mayors and Governors will help the economy change where political infighting has shown that the politics and lawmakers are holding back the progress of the U.S. Polls after polls showed that people do not see each other and politicians and natural disasters, and terrorism as threats to their livelihood. The last eight years and another four to maybe another eight years showed that the U.S. cannot have political incompetence. This will continue to bog down future administrations where the list of things to do adds up and the crisis always bring political deadlock.

Regional Mayors will help to expand cities that would help to harmonize laws, public works, and investment deals where instead of one city looking for cluster placement. A series of twenty or thirty cities will bring attention to these areas with a large pool of customers, human capital, and financial capital. This would increase of hitting power of American cities, towns, and rural areas that are seeking investments. This should make it easier for Regional Governors to collaborate with local and county officials.

Regional Governor will help dissolved the political deadlock by bringing business, trade, and cultural differences to expand the market. Public Health, Public Services, Infrastructure, and working business will help develop these areas into megaregions. With differed districts, one for commerce and another for military/law enforcement will assist and enforce the commercial consolidation. The website for the Council of Governors states the following and research should be put into this Council:

“The Council of Governors (Council) was created by the National Defense Authorization Act for FY 2008 and formally established by Executive Order 13528, issued on January 11, 2010. The Council is intended to serve as a mechanism for governors and key federal officials to address matters pertaining to the National Guard, homeland defense and defense support to civil authorities.”

Military/National Guard/FEMA/ Commerce consolidation based on the

Law Enforcement Districts U.S. Federal Reserve Districts

This should help with help institutions with adjusting to not only the commercial realities but includes law enforcement/military institutions for white-collar, cybercrimes, and natural disasters that will certainly take place.

This is the second article in a three-article series on Regional Governance.

http://www.rpa.org/article/what-us-map-should-really-look-like

https://www.nga.org/cms/CoG

https://www.washingtonpost.com/news/wonk/wp/2016/12/12/the-radical-new-map-that-would-really-reflect-life-in-the-u-s/?utm_term=.de2459fc269c

http://www.theleafchronicle.com/story/news/local/clarksville/2016/10/06/city-mayor-kim-mcmillan-lead-regional-mayors-caucus/91708566/

http://www.sanantonio.gov/DotGov/Full-Article/ArtMID/2621/ArticleID/8547/Mayors-to-meet-for-regional-growth-summit

Regional Council of Mayors

Founding Purpose: “We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity.”

The mechanism for achieving this goal is Capitalism and Democracy.

I hope everyone is enjoying their new year and I wanted to jump-start this blog because of the major risk and uncertainty that is accelerating in the coming months. The incoming Trump Administration has something that 44 presidents had before them in terms of a record to come off. The President-elect soon-to-be President has no record or background in politics to reference and that has a lot of people terrified. I see this as a major opportunity to open doors and destroy intellectually wasteful left/right debate in this country’s politics.

The first issue, I come to terms with not playing stupid gotcha left/right politics and creating opportunities for major reforms that are needed in the global economy because of the advancement of globalization, institutional changes to integrate new technological clusters into the economy, and consolidations needed to resolve conflict and risk. This central theme for the next post will be about creating fluid economic institutions to deal with a post gold standard economy.

The real stress is the economy that no one is talking about is the economy is expanding fastest than the present institutions can handle. To handle the major change and bring certainty and fluidity back to the market. Before we continue any further on this post. We have to define the two policies affecting the economy right now:

“Monetary policy involves changing the interest rate and influencing the money supply. Fiscal policy involves the government changing tax rates and levels of government spending to influence aggregate demand in the economy.”

Difference between monetary and fiscal policy | Economics Help

www.economicshelp.org/blog/1850/…/difference-between-monetary-and-fiscal–policy/

We need to acknowledge that we are in a shotgun wedding when it comes to the economy, treaties, and trade pacts. There is no way out of this or around it because the only autonomous nation on the planet is North Korea(they’re leveraged with food by the Chinese). We need to understand and create dialogue to address the structural shortcomings and the measures to resolve them. What I’ll love to inject into the debate is that we do not need so much tension where political showdowns and battles translate into market uncertainty which delays investments, contracts, and implementation of business decisions from the C-Suite.

The first issue I’m going to tackle is reforms of the Central Banks or commonly known as the Bretton Woods system to adapt to the current market of emerging markets, globalization, declining and evolving technological clusters, and upgrades to the current infrastructure. Basel III is the current structure of the global economy in terms of banks and the holdings they are required to have to keep the banks running. This could be the founding of Basel IV where the new changes in the tax code are updated across the world.

I don’t have an economics, finance, or high-level maths degree to work out the equations but the three areas that will explode the economy with a capital-rich environment is these three areas: capital requirements, leverage ratio, and liquidity requirements. The updated tax plan and policies suggested in this blog will help to reverse the declining clusters around the world.

The picture shows the role of the central banks in the country:

I’m proposing a consolidation of the top 8 central banks into a new central bank system with the U.S. and the U.K. The top financial cities(New York and London) are in those countries and the growth is small compares to the rest of the world. It already has the institutions within its borders and people are used to this nation-leading:

8 Central Banks You Need to Know

Taking the top 8 Central Banks and putting them into the U.S. Federal Reserve System and the U.K.’s Bank of England can help to resolve and bring efficiency back to the markets.

US Federal Reserve Bank (USD)
European Central Bank (EUR)
Bank of England (GBP)
Bank of Japan (JPY)
Swiss National Bank (CHF)
Bank of Canada (CAD)
Reserve Bank of Australia (AUD)
Reserve Bank of New Zealand (NZD)

Take the bottom banks and put them into the U.S. Federal Reserve System:

The same is on the bottom and will create Dual Branches of the Federal Reserve system that will reduce the number of central banks policies to contend with and make business decisions easier.

Take the bottom banks and put them into the Bank of England and it will help to reduce the danger of currency fluctuations and harmonize monetary policy around the World. Moving and splitting the Bank of International Settlements into both the U.S. and U.K. will help shake up the mix. I know what everyone is thinking (What about Brexit?)