Building an Independent Financial & Trade Network for Radical Federalism
How States Can Create Parallel Economic Systems to Free Themselves from Federal Control
How States Can Create Parallel Economic Systems to Free Themselves from Federal Control
The federal government’s greatest weapon is financial dependence. States that resist Washington’s control can be cut off, isolated, and economically strangled.
In The Economic Blueprint for Radical Federalism, we laid out why breaking this dependence is necessary. Now, this article explains how to do it.
This is not about theory. This is about execution.
A state seeking financial sovereignty must establish:
A state-controlled banking system to handle state revenue and bypass federal financial oversight.
An independent trade and supply network that ensures economic resilience in case of federal retaliation.
Legal and regulatory protections that shield businesses, residents, and financial institutions from federal interference.
These three pillars form the foundation of a financial system that reduces federal leverage.
I. Establishing a State Public Bank as the Core of Financial Independence
Why This Matters
Washington controls state finances through federally regulated banks.
State tax revenue is often deposited in federally chartered banks, giving Washington control over state finances.
The Federal Reserve dictates monetary policy, affecting state economies with interest rate changes beyond their control.
Federal financial regulations force compliance with Washington’s agenda, limiting state-level financial autonomy.
A state bank ensures financial flexibility by keeping tax revenue, infrastructure funding, and investment capital within the state.
The Bank of North Dakota: A Model of Economic Sovereignty
Since 1919, North Dakota has operated a state-run public bank, keeping public funds inside the state instead of enriching Wall Street.
Read more about the Bank of North Dakota here:
The Bank of North Dakota : The Model for Radical Federalist State Banking
In 1919, North Dakota’s farmers and small businesses were being crushed by Wall Street banks that cared more about speculation than survival. That year, they did something no other state had dared to do: they took control of their own financial destiny and created the
The bank has:
Insulated North Dakota’s economy from recessions, offering low-interest loans to businesses and providing economic stability independent of federal monetary policy.
Ensured that state revenues remain in North Dakota rather than being deposited in banks operating under federal regulation.
Allowed the state to finance infrastructure and social programs without relying on federal grants.
How to Implement Public Banks in Other States
Pass the State Sovereign Banking Act
Charter a state-owned public bank, modeled on North Dakota’s system.
Require that all state tax revenues be deposited in the state bank, rather than federally regulated institutions.
Provide low-interest loans to municipalities, businesses, and infrastructure projects—without federal approval.
Establish a Digital Financial Infrastructure
Develop a state-controlled payment system to process transactions independently of federal networks.
Issue state-backed financial instruments, to facilitate local and interstate commerce.
Partner with local credit unions to expand state-controlled financial services.
Create a State Liquidity Fund
Establish a state-run credit facility to provide liquidity to local financial institutions.
Develop multi-state banking networks that allow for inter-state transactions without routing through Federal Reserve branches.
█ Why This Matters
Washington dictates policy because it controls the money supply. A state that runs its own banking system does not need Washington’s approval for economic development.
Key Takeaways
Public banks keep tax revenue inside the state, funding local projects instead of federal mandates.
Public banks allow states to fund social programs without federal approval.
Public banks reduce dependency on federally controlled financial institutions.
II. Developing a Multi-State Economic Sovereignty Pact
The Argument
A single state acting alone can be economically isolated.
A coalition of states creates a parallel economic system that is harder to control.
Interstate trade and financial cooperation create economic resilience against federal policies.
How to Implement It
Pass the Multi-State Economic Sovereignty Pact
Participating states agree to prioritize trade, investment, and financial transactions within the alliance.
States establish common economic policies to streamline business operations across member states.
A regional economic network is created, allowing states to bypass federally controlled markets when necessary.
Establish Joint Financial & Infrastructure Projects
Create a joint economic development fund to finance infrastructure and innovation.
Establish alternative financial mechanisms, such as a shared state-backed financial clearinghouse, to facilitate commerce between states.
Develop Parallel Supply Chains
The compact prioritizes interstate commerce among member states, reducing dependence on federally controlled imports and logistics networks.
Strategic industries (energy, food production, manufacturing) are developed with an emphasis on local supply and multi-state trade.
█ Why This Matters
Washington’s real power is not in its laws—it is in its financial control. Every dollar that flows through federally controlled systems gives Washington leverage. The more states build independent financial and trade networks, the less Washington can interfere.
Key Takeaways
A decentralized trade network reduces reliance on Washington’s economic system.
A coalition of financially independent states becomes resistant to federal economic pressure.
Multi-state cooperation increases economic leverage against federal policies.
III. Reforming Monetary Policy Without Relying on the Federal Reserve
The Argument
The Federal Reserve has immense power over state economies through interest rate manipulation, monetary policy, and liquidity controls. While full separation from the Fed is not immediately feasible, states can take incremental steps to reduce dependency and gain greater financial autonomy.
How to Implement It
Expand State Public Banks to Provide Independent Liquidity
State banks can act as regional financial hubs, reducing reliance on the Fed’s liquidity system.
A multi-state investment pool can help fund infrastructure without reliance on Treasury bonds.
Gradually Develop Alternative Payment and Settlement Systems
States can introduce digital payment networks to facilitate local and inter-state commerce.
A multi-state transaction clearing system can reduce the need for FedWire and SWIFT-based transactions.
Decentralizing Monetary Policy Through Regional Agreements
State financial institutions can set their own lending policies, insulating local economies from federal rate hikes.
Long-term cooperative agreements between states can stabilize local trade without immediate dependence on Federal Reserve adjustments.
█ Why This Matters
The goal is not to abolish the Federal Reserve, but to build financial mechanisms that reduce reliance on its centralized policies. This allows states to maintain economic stability regardless of federal monetary decisions.
IV. The Roadmap to Economic Independence
Each stage of economic decentralization must be executed methodically:
Phase 1 (0-6 Months)
Pass state legislation for a public bank and financial sovereignty laws.
Phase 2 (6-12 Months)
Move state revenue into the public bank, begin alternative trade agreements.
Phase 3 (12-18 Months)
Establish multi-state economic partnerships, develop alternative payment systems.
Phase 4 (18-24 Months)
Finalize legal protections, integrate parallel financial infrastructure into daily operations.
V. The Future: A Decentralized Economic System That Reduces Federal Leverage
Radical Federalism requires economic autonomy. States must build independent financial institutions, trade networks, and legal shields to prevent Washington from using money as a weapon.
This is not a thought experiment. It is a strategic necessity.
The time for financial dependence is over. The time for economic sovereignty is now.