Idea #6

Stu’s Idea #6:

Now let's add a new wrinkle, the US government creates its own bank, loaning money to US citizens for mortgage backed applications, restricted to construction done within the United States border. Interest offered here would be less than the Fed would offer. This puts the US government in the banking business powered by artificial intelligence and manage by a minimal overhead. This could potentially create a river of money in earned interest. How would this change things?

TL/DR GROK “This tweak adds juice—economic lift, citizen benefits, and a tighter debt timeline.”

GROK:

Alright, let’s weave in this new twist: the U.S. government launches its own bank, offering low-interest, mortgage-backed loans to citizens for construction projects within U.S. borders, powered by AI with minimal overhead. This runs alongside the existing plan—no Fed seizure, dollar stays, interest rates lowered via negotiation and Fed influence, slimmed-down government (judiciary, State, military, DOJ, phased cuts, keeping Social Security and Medicare), matching tariffs, and the Golden Rule. Here’s how it reshapes things.

The government bank—let’s call it the U.S. Citizens’ Bank (USCB)—steps into the lending game. It targets mortgages for new construction, not resales, with rates below the Fed’s influence (say, 2% vs. the Fed’s 4-5% benchmark for mortgages in 2024). Funding comes from Treasury coffers, leveraging the $1.6-1.7T surplus (from $4.9T revenue, $3.4T spending, plus $150-200B in tariff income). AI handles loan approvals, risk assessment, and management, slashing staff costs—think a skeletal crew of overseers, not thousands of bankers. Construction must be U.S.-based, boosting domestic jobs and materials.

Economically, this pumps money into housing and infrastructure. U.S. mortgage debt is $12T; new construction is a fraction—say, $500B annually. If USCB captures half ($250B) at 2%, it earns $5B in interest yearly. Scale it up: $1T in loans (over years) nets $20B annually. That’s a trickle, not a river, compared to the Fed’s $100B+ profits in good years, but it’s steady and grows. The surplus rises to $1.62-1.72T, shaving debt repayment ($26T) to 15-17 years from 16-19. Plus, construction booms—maybe 1-2% GDP growth ($300-600B)—offsetting the 3-5% GDP drop from budget cuts. Jobs spike in building trades, softening unemployment.

The Fed’s reaction? It’s independent, so it might not love the competition. Private banks—holding $8T in mortgages—definitely won’t; they’ll cry foul over “unfair” government rates. But USCB’s niche (new U.S.-built homes) limits overlap—Fannie Mae and Freddie Mac dominate broader mortgages, and banks can still compete on service or flexibility. The Fed keeps influencing broader rates (easing to 2% on Treasuries), while USCB undercuts on its slice. No systemic clash—more a parallel track.

Golden Rule check: citizens get cheaper loans (treat them as you’d want), creditors still get fair deals (1-2% negotiated rates), and tariffs stay reciprocal. The catch? Taxpayers front the cash. If defaults spike—AI’s good, not perfect—the surplus takes a hit. Say 5% of $1T in loans ($50B) goes bad; that’s $50B less for debt. Mitigate it with strict AI vetting and U.S.-only rules to keep funds domestic.

Outcomes? Debt shrinks faster with interest income and growth—15-17 years is solid. Housing stock rises, jobs grow, and the dollar holds as the Fed stays steady. Private banks grumble but adapt; citizens cheer affordable homes. Politically, it’s a win—voters love tangible perks—though Congress might balk at setup costs (minimal, thanks to AI). It’s not a money river ($20B vs. $900B in interest payments), but a reliable stream, amplifying the plan’s oomph without breaking it.

This tweak adds juice—economic lift, citizen benefits, and a tighter debt timeline. The Golden Rule keeps it fair, and AI makes it lean. Thoughts—does this spark the vibe you’re chasing?