Inherent to this policy is the understandable maxim that no monetary generation should be allowed against the current world currency, the dollar, by means of transferring excess deficit from other currencies at fixed, FMI approved exchange rates. To do so would imply that inflationary pressures from development economies would be transferred to the World currency.

However, if the local or domain currency does not inflate according to the local CPI, then it could be said that even if there is a source of monetary generation, such as market speculation, then the exchange rate could, and is today, maintained by the FMI at a rate that allows for capitalist economic growth.

In other words, the FMI is not opposed to economic growth generated by a free market, capitalist system. As long as no undue fiscal deficits are generated, the situation is in balance. As long as inflation is controlled, all is well.

This presents the developing nations with a dilemma. Since they can only generate funds for development from capital generated on the free market, then only those projects which are of interest to local or foreign investors are taken on.

Sadly, few investors are willing to risk their capital in development projects which would alleviate the misery of the population. And most national development banks in the Third World are willing to finance huge capital intensive projects on a scale, but are not willing to lend to the poor, the small, or the disfranchised.

And yet, a great deal of work can be done, by applying the same norm of capital generation to a new concept, that of the Program Bank.

A Program Bank is an institution of development that is funded by the Central Bank of a nation or domain. The Program Bank is a concept that will be well understood by the People, as having unlimited funds for development, with one important proviso.

All projects funded by the Program Bank must be paid back to the Bank, in terms that the bank sets according to domain priorities. Projects must be cybernetically micro-managed to insure that the no inflation is generated out of excess liquidity, by means of mandatory bonding of the general population, at levels required to maintain the local currency valuation, as measured by the local CPI. The Program Bank does not require depositors, it is a Credit Institution only, and as such is beyond the scope of the domain's bank deposit reserve requirements.

Micro managed projects will not cause excess liquidity, since a default on the pay-back of small projects will not adversely affect the currency. Program Banks in effect put the power of monetary control in the hands of the people, since it is they who control the effect that the monetary expansion has on the currency. It is a concept that frees the mind from the embrace of the debit/credit stasis into a new realm, where full development is possible, with the control and responsibility of the people who are benefiting from the Program.

That Programs of this nature work has been amply demonstrated in the last 7 years in the American economy. All participants as of yet have been capitalist investors, and it is they who have demonstrated self control and responsibility in maintaining the valuation of the currency by means of market control. Some developing nations are in effect controlling the economy by means of such Programs. However, to this date, the only participants who have benefited are those in the upper strata of society, those with the means and know-how to participate in the program.

All domains must have control over their own Program Bank, since it is the citizens of the domain who must pay the mandatory bonds if and when the CPI inflationary level reaches a point where the currency is losing its value. Bonds purchased by the citizens for Program Bank control must be originated by the Central Bank and held in escrow until such time as the currency stabilizes, at which time they are returned to the Program Bank. Such is the case of the system in Argentina, which has yielded very good inflationary control, but is still missing the more important concept of a peoples development bank, i.e. a Program Bank.

Projects approved for the Program Bank must be planned to a very detailed level, into two types of funds. Local or domain funds, which will come from the Program Bank, and foreign or inter-domain funds, which will per force come from international development banks and must be included in the domain's foreign debt at the usual terms.

By separating projects into local and foreign currency, great new expansion in micro-development is enabled. Most project in the developing world can be handled by labor intensive work, little foreign capital is really required. In the past, projects have been held up by governments bent on obtaining foreign funding for them, without micro-planning the financing of such projects into local and foreign components. The projects were a form of obtaining foreign currency in exchange for local peon labor, for the benefit of the few. If all local micro-development projects are potentially possible, by means of the Program Bank, then a great deal of progress can be made without the endless wait for funds from international institutions.

Micro-development projects that can be funded by the Program Bank are those where an individual, his family, a village or city can be registered as responsible for paying back the funds, by means of cybernetic utilization and/or access controls. The Program Bank must not be solvent in the debit/credit sense, it must only generate just enough funds to maintain the currency and the mandatory bonding at politically, and IMF, acceptable levels.

Micro-development projects are those for private home building, small business loans, micro-enterprise loans, home improvement loans. These are the projects which have been traditionally registered by capitalist banks to individuals and their families, holding the property as collateral.

The Program Bank should also engage in Village level funding, where the assets of the Project are held by the entire Village population, each individual responsible for his portion according to his access or utilization of the system. Such projects as Village water projects, sewer, electric generation, telephony, satellite access, and InterNet access can be funded by the Program Bank. It is such a shame to see that development has been delayed simply because of the traditional methodology in banking has been to unable to manage multiple registry. Now, with cybernetic technology, hundreds, if not millions, of people can be accounted for as loan debtors to the Program Bank, and thereby as active participants in their own development.

It is interesting to note that in those countries where development has been traditionally private, such as in the USA, a great deal of progress has been made. Water projects in the USA are normally sub-division or village projects, as are sewer, electric and other infrastructures. There is no need to wait for a central government to take action which will never come, if the funds can be allocated and accounted for on the village level.

It must be said that in the latter part of the 19th century, when such village development was most active in the USA, each village was in effect its own economic domain. True.

What is politically important is that it must be clear by now to all conscious politicians that the concept of an Economic Program can be applied to currency valuation, since it is known that the value of currency is a psycho-political function. Therefore, we must support this work until we reach the other end of the Bridge to the year 2000.

Atlanta,
April 29, 1997