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Health Care & Environment
12.17 Brazilian police foil million-dollar fraud to export precious wood to China [clear-cutting forests harshly impacts all life above and below ground-level for decades; it decreases oxygen production and seguestration of CO2 and increases area, frequency and duration of drought]
12.13 English rivers polluted by powerful insecticides, first tests reveal [Are similar tests of U.S. waters conducted by the EPA anymore? We think not...]
News Media Matters
12.17 A Report to Our Readers
US Politics, Policy & 'Culture'
12.17 'Making America Stupid Again': Outrage Over Forbidden 7 Words You Can't Say at Trump's CDC [“Stupid is as stupid does.” –Forrest Gump]
12.16 Poverty in US set to increase due to Donald Trump's policies, says UN official [oligarchy-controlled countries are wonderful for the very rich]
12.16 Republicans Despise the Working Class [oligarchy-controlled countries are wonderful for the very rich]
12.17 Venue of last resort: the climate lawsuits threatening the future of big oil [something else Republicans are packing the courts for...]
12.15 Who Pays for Judicial Races? The Politics of Judicial Elections 2015-16 [desperately packing the courts at all levels to protect white power & unregulated capitalism]
12.13 US Concern Over 'Pervasive' High-Level Corruption Surging Under Trump: Poll [anyone surprised?]
12.17 Trump’s Misuse of Intelligence on Iran [immoral behavior that could lead to War]
Economics, Crony Capitalism
12.17 How a Philadelphia nun became the unlikely face of conscientious capitalism [Why don't we teach morality in Law & Business schools?]
12.16 The Republican Tax Bill Provides Huge Benefits to People Who Don’t Work. But Only if They’re Rich. [oligarchy-controlled countries are wonderful for the very rich]
12.16 The United States Is Now as Unequal as Russia. And That’s Before the Tax Bill. [oligarchy-controlled countries are wonderful for the very rich]
12.16 EU to force firms to reveal true owners in wake of Panama Papers [what are the chances oligarchy-controlled countries (esp. America and Russia) ever agree to fight tax evasion and money landering? International agencies must all mandate common regulations as a condition for UN membership, trade agreements, world bank loans, etc.]
12.15 FCC Chair Ajit Pai 'Shows Just How Dumb He Thinks Americans Are' With Video Mocking Net Neutrality [he won't discuss how giving more monopoly power to cable ISPs will increase consumer costs and stifle innovation]
12.13 The “Death Tax” Cargo Cult [we lack for morals and sanity in U.S. media & politics]
International & Futurism
12.17 Africa’s new elite force: women gunning for poachers and fighting for a better life [a good model that converts victims of abuse and cruelty into positive activists with good jobs...]
12.14 Israeli undercover soldiers seen arresting Palestinian protesters [Palestinians need more and better weapons for a fair fight]
Keeping The State’s Money In The State: An Alternative Solution To The Budget Crisis
Sunday, 27 March 2011
State-owned banks could be a win-win for everyone interested in a thriving local economy. Objections are usually based on misconceptions or a lack of information.
Cut spending, raise taxes, sell off public assets – these are the unsatisfactory solutions being debated across the nation; but the budget crises now being suffered by nearly all the states did not arise from too much spending or too little taxation. They arose from a credit freeze on Wall Street. In the wake of the 2009 financial market collapse, banks curtailed their lending more sharply than in any year since 1942, driving massive unemployment and causing local tax revenues to plummet.
The logical solution, then, is to restore credit to the local economy. But how? The Federal Reserve could provide the capital and liquidity necessary to create bank credit, in the same way that it provided $12.3 trillion in liquidity and short-term loans to the large money center banks. But Fed Chairman Ben Bernanke declared in January 2011 that the Fed had no intention of doing that — not because it would be too costly (the total deficit of all the states comes to less than 2% of the credit advanced for the bank bailout) but because it is not part of the Fed’s mandate. If Congress wants the Fed to advance credit to local governments, he said, it will have to change the law.
The states are on their own. Policymakers are therefore considering a variety of reforms designed to increase bank lending, particularly to small businesses, the hardest hit by tightening credit standards. One measure that is drawing increasing interest is the creation of a bank modeled on the Bank of North Dakota (BND), currently the only state-owned bank in the country. The BND has a 92-year history of safe, secure and highly profitable banking. North Dakota has the lowest unemployment rate in the country; and in 2009, when other states were floundering, it had the largest budget surplus it had ever had.
Eight states now have bills pending either to form state-owned banks or to do feasibility studies to determine their potential. This year, bills were introduced in the Oregon State legislature on January 11; in Washington State on January 13; in Massachusetts on January 20 (following a 2010 bill that lapsed); and in the Maryland legislature on February 4. They join Illinois, Virginia, Hawaii, and Louisiana, which introduced similar bills in 2010. The Center for State Innovation, based in Madison, Wisconsin, was commissioned to do detailed analyses for Washington and Oregon. Their conclusion was that state-owned banks in those states would have a substantial positive impact on employment, new lending, and state and local government revenue.
State-owned banks could be a win-win for everyone interested in a thriving local economy. Objections are usually based on misconceptions or a lack of information. Proponents stress that:
Other states could realize similar benefits, if they were to form banks on the BND model. Paying interest to coupon clippers on state and municipal bonds means sending money out of the state on a one-way trip to Wall Street. Having a state-owned bank allows the state to keep its money local, flowing into the state treasury and the local economy.
Ellen Brown is an attorney and the author of eleven books. In Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free, she shows how the Federal Reserve and "the money trust" have usurped the power to create money from the people themselves, and how we the people can get it back. Her websites are webofdebt.com, ellenbrown.com, and public-banking.com.
Ms. Brown's stories are republished in the Baltimore Chronicle with permission of the author.
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Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.This story was published on March 27, 2011.