Public Banking – “Banking in the Public Interest”

By Greg Wendt

An excellent article was just written called “Reviving Main Street – A Call for Public Banks” highlighting the opportunity states across America have to restore a healthy economy – simply by creating a state bank.

Surprisingly, North Dakota is the only state in the union which has created its own bank.

The article highlights work of thought leader Ellen Brown , and the Public Banking Institute which educates policymakers about the opportunities from the straightforward process of forming a state owned bank.

Her site shares that:

Public Banks are…

  • Viable solutions to the present economic crises in US states.
  • Potentially available to any-sized government or community able to meet the requirements for setting up a bank.
  • Owned by the people of a state or community.
  • Economically sustainable, because they operate transparently according to applicable banking regulations
  • Able to offset pressures for tax increases with returned credit income to the community.
  • Ready sources of affordable credit for local governments, eliminating the need for large “rainy day” funds.
  • Required to promote the public interest, as defined in their charters.
  • Constitutional, as ruled by the U.S. Supreme Court

…and are not

  • Operated by politicians; rather, they are run by professional bankers.
  • Boondoggles for bank executives; rather, their employees are salaried public servants (paid by the state, with a transparent pay structure) who would likely not earn bonuses, commissions or fees for generating loans.
  • Speculative ventures that maximize profits in the short term,  without regard to the long-term interests of the public.

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5 responses

  1. The Myth That Japan Is Broke: The World’s Largest “Debtor” Is Now the World’s Largest Creditor

    Posted: 09/05/2012
    By Ellen Brown

    Japan’s massive government debt conceals massive benefits for the Japanese people, with lessons for the U.S. debt “crisis.”

    All of this has implications for Americans concerned with an
    out-of-control national debt. Properly managed and directed, it seems,
    the debt need be nothing to fear. Like Japan, and unlike Greece and
    other eurozone countries, the U.S. is the sovereign issuer of its own
    currency. If it wished, Congress could fund its budget without resorting
    to foreign creditors or private banks. It could do this either by
    issuing the money directly or by borrowing from its own central bank,
    effectively interest-free, since the Fed rebates its profits to the
    government after deducting its costs…

    Properly directed, the national debt becomes the spending money of the
    people. It stimulates demand, stimulating productivity. To keep the
    system stable and sustainable, the money just needs to come from the
    nation’s own government and its own people, and needs to return to the
    government and people.

  2. Public Banking Conference 2013: Funding the New Economy
    Sunday, June 2 – Tuesday, June 4
    San Rafael, CA

    How often do you get a chance to join with other creative minds discussing how best to redesign the banking systems of nations, in ways that would create new prosperity for millions and help to rebuild local economies?

    This year, just once.

    Join pioneering policy makers, civic leaders, banking entrepreneurs, innovators and ordinary citizens interested in learning about one of the most critical undertakings of our time: creating a truly prosperous, democratic and sustainable new economy.

    The Public Banking Institute (PBI) is actively enrolling leading organizations to participate in a national coalition to create a network of public banks. These banks can be capitalized from several sources, including public employee and other labor pensions, with the core deposits coming from tax and other revenues from city/county/state governments.

  3. truthout
    The Global Banking Game Is Rigged, and the FDIC Is Suing
    14 April 2014 – By Ellen Brown

    Taxpayers are paying billions of dollars for a swindle pulled off by the world’s biggest banks, using a form of derivative called interest-rate swaps; and the Federal Deposit Insurance Corporation has now joined a chorus of litigants suing over it….

    It is not just that local governments, universities and pension funds made a bad bet on these swaps. The game itself was rigged, as explained below. The FDIC is now suing in civil court for damages and punitive damages, a lead that other injured local governments and agencies would be well-advised to follow. But they need to hurry, because time on the statute of limitations is running out.

    The Largest Cartel in World History – On March 14, 2014, the FDIC filed suit for LIBOR-rigging against sixteen of the world’s largest banks – including the three largest US banks (JPMorgan Chase, Bank of America, and Citigroup), the three largest UK banks, the largest German bank, the largest Japanese bank, and several of the largest Swiss banks….

  4. OpEdNews 5/19/2014
    Are Public Banks Unconstitutional? No. Are Private Banks? Maybe.
    By Ellen Brown –

    … When enough people understand that private banks rather than governments create our money supply, imposing interest and fees that constitute an enormous unnecessary drain on the economy and the people, we might wake up to a new day in banking, finance, and the return of local economic sovereignty.

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