http://hobnobblog.com/2012/02/25/revolving-fund-congressional-glossary/
(As poorly as I think it may have been written)
A fund established by Congress to finance a cycle of businesslike operations through amounts received by the fund. A revolving fund charges for the sale of products or services and uses the proceeds to finance its spending, usually on a self-sustaining basis. Instead of recording the collections in receipt accounts, the budget records the collections and the outlays of revolving funds in the same account. A revolving fund is a form of permanent appropriation. (See also Account, and “Interagency Contracting: An Overview of Federal Procurement and Appropriations Law,” CRS Report for Congress R40814.)
I used the Navy Stock Fund, (a revolving government fund) to buy wholesale level material stored at navy supply points for sale to navy end users. The sale of stock provided money to buy replacement stock. I also worked in the Industrial Fund segment of the supply system during my career in the Naval Supply Systems Command.
What strikes me is the that the National Debt, when viewed as our National Asset, is in reality our money supply as a revolving fund. Without it there would be no money supply. As our money supply it is our net savings. (I believe that to be the MMT position)
Memories of money management during my navy career have been a background ringing in my ears ever since I started taking a closer look at the monetary system. Perhaps there are some closer connections that make it worthwhile to revisit the conceptual financial system that was a large part of my career and apply it to my current choice of problem domain challenge
In effect, if not flat out reality, the National Debt is a revolving fund appropriated by Congress by its establishment of the level of debt permitted by law.
Congress does in fact authorize a revolving fund (a form of permanent appropriation) to pay interest on the National Debt.
This site entry:
Amendment 28 - Nationalizing Credit and the National Debt
by Mark Walter Evans
http://www.indybay.org/newsitems/2011/07/26/18686142.php
Proposes an amendment to the Constitution to turn our National Debt into our National Asset as a "revolving fund within the U.S Treasury Department, to be known from henceforth, as the called “Common-Wealth of America.”
A revolving fund as a repository of National Debt becomes a revolving fund of National Asset or, in other words, Working Capitol.
In the process the need for a revolving fund to pay interest on the National Debt goes away.
What is this revolving fund to pay interest on the National Debt? How much is in it. What does it sell in return for money. What does it then buy in return for money? Interest, of course. A revolving fund out of which to buy and sell interest on money?
Gotta think about this.
Section 302 of Dennis Kuchinich H.R. 2990: National Emergency Employment Defense Act of 2011 at http://www.govtrack.us/congress/bills/112/hr2990/text
Section 403 establishes a revolving fund for banks to draw from to make loans:
SEC. 403. ESTABLISHMENT OF FEDERAL REVOLVING FUND.
(a) Revolving Loan Fund- Subject to provision in advance in an appropriation Act, there is hereby established a revolving loan fund in the Treasury of the United States where amounts received from depository institutions under terms specified in section 402 of this Act shall be deposited and made available for relending to banking institutions and for other purposes.(b) Administration- The Revolving Fund shall be administered by the Bureau under such terms and conditions as the Secretary shall prescribe consistent with the purposes of this Act.
This really reduces banks and their loans to the status of a user of the money supply, not an owner of the debt free money supply and consequently to system administrator authority. That, exactly, is the proper role that I see in the total scheme of things for banks. Kuchinch applies it only to the sector of funding public infrastructure spending. That model, however scales beautifully to the entire monetary system!!!! (I think.....)
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