I practice a different type of constitutional law. The question I ask is, “Are the State powers coordinating to maintain the value and the strength of the currency? My policy (strategic) position is the Fleming Maxim (named for my friend and economist, James Fleming): strong dollar plus tariffs hurt poor people. Hurting poor people creates a clear and present danger to the State; it puts the validity of the State’s philosophy and narrative in question.
Whether you are a wage earner who has a consumption end-use for the currency, or a merchant that borrows and exchanges currencies for the purpose of buying and selling goods, or a speculator profiting from price movements, you should be concerned about the stability of the political economy that generates the currency.
The Constitution does not explicitly give the Executive power over the coining of money (monetary energy). That power belongs to the Congress, but through its legislative power, Congress has delegated the day-to-day execution of Congress’ will to the Treasury and to the Federal Reserve. The twelve central banks and national commercial banks, pursuant to regulations enforced and promulgated by the Board of Governors of the Federal Reserve System, regulate the supply of currency by lending it into existence based on value of provided collateral and invested into securities.
Underlying this currency generation is a transactional economy that takes a dollar and flips it into a dollar and fifty cents at the end of the day. The State takes its share of the energy generated from transactions and leaves (increasingly less) of the take to consumers.
A constitutional lawyer should advise and counsel the State on whether this model is being maintained and if not, how best to reconstitute the three powers such that the macroeconomic order of the political economy is maintained.
Whether a merchant or speculator, you should maintain an interest in how well the State is maintaining this order and be ready to comment, petition, or otherwise intervene.
Alton Drew
8 December 2024
If you are in need of a legal or political risk assessment regarding your trading environment, reach out to me on LinkedIn or email me at altondrew@altondrew.com.
DISCLAIMER: I am not a financial adviser. These blog posts are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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