Local Gov’t Stories, Events
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Health Care & Environment
05.20 Global Study Shows Americans Dying from Preventable Causes at Shocking Rates [“What a country!” —Yakov Smirnoff]
05.20 China claims breakthrough in mining 'flammable ice' [might greater release of methane to our atmosphere become a larger problem?]
05.18 Trump Wants to Cut Energy Dept's Renewables Budget. Big Time. [“Stupid is as stupid does.” – Forrest Gump.]
05.18 Pesticide that Trump's EPA refused to ban blamed for sickening farm workers [fact-free 'emotional' government can have very high costs. this is a warning to change conduct before its too late.]
05.18 'The pill mill of America': where drugs mean there are no good choices, only less awful ones [governments must unleash research hospitals and pharmeceutical companies to design and manufacture safer and non-addictive recreational drugs to stop illegal drug trade's crime's social, health and prison costs]
News Media Matters
US Politics, Policy & 'Culture'
05.21 The small Texas city fighting to remain a ‘safe haven’ for immigrants [morally right & courageous]
Economics, Crony Capitalism
05.20 The Malta Files: How the smallest EU country became a haven for global tax avoidance [why can't we play nice together?]
05.19 America's geography of wealth: the shrinking urban middle class visualised [animated bar chart] [tens of millions of families are living in increasing financial stress–Hillary ignored it and Trump made alt-promises (a.k.a.: lies)]
05.22 Big game hunter is crushed to death when an elephant he was hunting in Zimbabwe is shot and falls on top of him [a fitting death to an elephant killer]
05.21 UK needs more immigrants to 'avoid Brexit catastrophe' [who benefits from bad "conservative" policy?]
05.21 THE LIGHTS ARE GOING OUT IN THE MIDDLE EAST [we suggest enticing a solar panel and battery manufacturers to locate in your countries to diversify economies and create jobs. use solar to empower yourselves...]
05.21 Budget analysis shows some Australian women hit with effective marginal tax rates of 100% ["conservatives" are cruel to the poor and desperate everywhere, to protect themselves from higher taxes]
05.21 Venezuela: 50th day of protests brings central Caracas to a standstill [who does interventions for countries? could the UN help more?]
05.21 Brexit and the coming food crisis: ‘If you can’t feed a country, you haven’t got a country’ [fear-based nationalism will become a costly problem]
05.20 Let’s Skip the War Part—and Go Right to Reparations [powerful writing!]
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.