Tuesday, November 25, 2014

Postal Service. The Government Monetary System and the Banking Accounting System

This link sparked my thoughts this morning: Why Congress Should Not Get Out Of The Way Of The Postal Service

The role of the Postal Service as a Federal Government agency is worthy of analysis from the broad perspective of government provided public services vs services provided by free private enterprise.  Worthy of analysis because it is a back burner issue that should be brought to the front burner.  The issue is a fundamental battleground where the public and private interests conflict.  An issue as fundamental as the one that divides us politically into two parties and two philosophies:  The domains of Public and Private structures and their operation to provide services to our citizens.

At the national level what centrally manged institutions in order of ranking have the greatest degree of dispersed geographical presence throughout the country?

McDonalds?  14,000 outlets in the USA.

Post Office retail outlets: 31,000.  More stats at this link.

That is a range dispersion  question.  What about depth of organizational penetration?

I contend that there is no single national level institutional management entity comparable to the Postal System in both geographical range and and physical system structural depth in our country.

Is that an accurate contention?

If not then what other singe centrally managed institution (besides the government in general or any other single government institution) has a comparable geographic range and physical structure depth down to grass roots services to the public that "touches" the public every day?

Fox News?  Fox news only delivers, they do not own the physical delivery system.

A religious institution?  They only deliver on Sunday and no single one is under command and control to deliver to all.  Only to those that will enter but open to everyone (with certain qualifications for entry).

Enough of the speculation.

Institutional Banking in the Federal Reserve System is the only entity that I can immediately think of that has the range and depth reach of the Postal System.  Institutional Banking under the domain of the Federal Reserve Bank is perhaps the standard bearer of the free private enterprise profit oriented system.  There are 3,000 member banks in the Federal Reserve Bank System with the top 3 banks have 16,000 branches.  It is however a system of federated banks under a single system that calls itself "Federal" but is not a government agency.

Obviously it apparently evident that the private sector competitor of the Postal System is collectively the national level package delivery system corporations.  

Less obvious but perhaps of greater importance is that the private banking system is also a competitor of the Postal System.

It looks to me like the Postal System is the federal government's "foot in the door" entry to a national level public services monetary system at a brick and mortar level that is a strategic well established geographic and information management system providing core public and public managed services.

I contend that what money "is" must be disconnected from what money "does".  What money "is" belongs to government, what money "does" belongs to private banking.  The Postal System is a geographically dispersed information networked computer based system that potentially offers the best combination of resources necessary to manage a government debt free monetary system.

Emasculation or removal of that potential of the Postal System is strategic to the maintenance of private enterprise control of what money "is" as well as what it "does".

As long as the banking system controls what money "is" it will fail to serve the greater public good in applying what money does, which is the domain of free private enterprise.

What money is and the monetary system that establishes and maintains it existence independent of but in relation to its private application use as a medium of exchange is the sovereign right of government.  The Postal System currently has the best structure to re-purpose as the means to establish government control of a debt free monetary system.

In the monetary system structure that I have proposed in numerous prior blog entries the logical and physical interface between what money is (government system uniquely serialized digital dollar ) and what money does (banking system account) would exist at the local level between the Federal Reserve banking system branches and the government Postal System branches.  Local level encompassing everything in scale from the smallest to the largest city/area.

An accounting transaction between unique accounts involving money used as a medium of exchange transaction (what money does) made at a "local" level banking institution interfaces with an equally local government agency (Postal Agency)  to block chain register a change of ownership of related digitized, uniquely serialized dollars in denomination units of one each maintained by the government that collectively represents what money "is". 

The "Postal Agency" term takes on new meaning.  It becomes the Posting Agency that validates transactions in the Banking Accounting System against the related serialized money units existing in the Government Monetary System.

That is a check and balance system between public control of a monetary system and private enterprise application of a debt free monetary system as a medium of exchange in trade which may, in one application of trade, be in the domain of a credit system under the banking system double entry debit/credit control accounting system.

Money itself, as it exists as a debt free object in the government monetary system is subject to double entry control but not directly related to the debit/credit domain subsystem of bank lending.  The double entry is between money in the government system and the banking system always being in balance and equal at the total as well as the granular serialized unit dollar level.








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