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Health Care & Environment
10.19 How big pharma's money – and its politicians – feed the US opioid crisis [most governments impose price controls, but US Republicans and neoliberal Democrats are bribed to pretent that's not possible]
10.19 Self-harm among girls aged 13 to 16 rose by 68% in three years, UK study finds [drug use and crime are also caused by the same factors, but the $millionaires demand another tax cut so...]
10.19 Warning of 'ecological Armageddon' after dramatic plunge in insect numbers [Good job, Monsanto!]
10.18 'This is a really big deal': Canada natural gas emissions far worse than feared [roughly equivalent to all the cars and trucks in Canada]
10.13 Climate Change Is Making It Harder to Grow Rice [might there be a “perennial rice” with much deeper roots to survive droughts?]
10.13 'If the land isn't worked, it decays': Tunisia's battle to keep the desert at bay [beautiful business plan for LIFE]
10.13 Trump scraps Obamacare subsidies in surprise late-night announcement [videos; his Infantilism should cause his impeachment]
News Media Matters
10.15 The Establishment Still Doesn't Recognize The Political Revolution That's Happening [the question is, CAN MAINSTREAM NEWS MEDIA – desperate for corporate advertising as revenue falls – ALLOW CHANGE TO HAPPEN?]
US Politics, Policy & 'Culture'
10.19 Is racial bias driving Trump’s neglect of Puerto Rico? [the evidence is obvious]
10.19 Even After Equifax and Wells Fargo, GOP Sides With Big Financial Institutions [as do neoliberal Democrats like Hillary Clinton]
10.18 TA-NEHISI COATES UNPLUGGED [audio & transcript]
10.16 The Texas town where all the energy is green [Alert! Ignoring party leadership, exceptional Republicans use reason to do good!]
10.17 Trump could remake judiciary for ‘40 years’ — with controversial picks [America will become more like Malta; facilitating corporate/mafia criminality to the maximum]
Economics, Crony Capitalism
10.17 Trump Revives Notorious GOP Dog Whistle in Call for 'Welfare Reform' [less money "wasted on welfare" would allow larger tax cuts for "the more deserving rich"]
10.17 For Abandoning Climate Accord, Pope Swipes Trump on World Food Day [Trump is attuned to serve billionaire friends and himself]
International & Futurism
10.18 Robots Are Coming for These Wall Street Jobs [interactive graphics]
10.17 For Abandoning Climate Accord, Pope Swipes Trump on World Food Day [Trump is attuned to serve billionaire cronies and himself]
10.17 The Movement of #MeToo
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.