Fri Dec 7, 2012, 12:51 PM
Segami (6,905 posts)
The Linchpin Tipping Point to REVERSE Centuries of Top Down, 1% Power and Privatization?
Editor's note:I took the words "public banking" out of the title because it's so not sexy I thought it would turn people off. But I hope you'll read through this article and see how and why I believe that Public banking could be THE intervention that begins the extinction of the Top Down powers of the one percent class. I have become a Public Banking hyperenthusiast
" Tonight I went to a local meeting of the Public Banking Institute with Ellen Brown as the featured speaker. First, I joined the local organizers of the meeting, Brown and the director of the institute, Mark Armstrong. The lecture and the conversations before and after really helped me connect some dots that tie together single payer health care, Naomi Klein's Shock doctrine, tea partiers, bankrupt cities, global bankers like the Rothschilds, the class war and the war of the top-down powers against the bottom up revolution.
First, some notes from Ellen Brown's lecture:
A -public bank is not for the public- it's created to serve in the public interest-- but is a bank for bankers, not the public-- no front offices, no advertising, no big staffs. There's only one state with a public bank-- North Dakota-- and it is the state that has done better than every other state in terms of making budget and low unemployment. Public banks serve governments-- cities, counties, municipalities, states and in other parts of the world, whole countries. They serve them by making interest-free loans to them and by earning far greater interest on money they have. And they have a lot of money-- government employee pension funds, rainy day funds" which ordinarily earn a tiny amount compared to what they would earn if a bank was using them to earn interest.
Mike Krauss, chairman of the Pennsylvania Public Banking project told the group, "Our thrust is to decentralize credit and decentralize wealth holding-- a decentralization of wealth will create a decentralization of political power."
Ellen Brown, author of Web Of Debt, gave some stats in her presentation:
35-40% of everything we buy goes to interest.
29% of business profits go to the financial industry.
21-32 trillion are hidden in offshore tax havens.
You don't have to be paying interest on anything directly to be paying interest. Interest is built into the product.
40% of public projects, on average, goes to interest.
12% interest for garbage collection
38% interest on water processing
70+% interest as part of public housing costs.
How can governments recapture these profits?
By owning a bank.
Banking is not a market good or service. It's financial infrastructure, which belongs in the public sector-- part of the commons. Public banking means reduced banking costs: no bonuses, no fees, no commissions, no advertising, no branches. no high paid CEOS, just civil servants.
California has $70 billion in different pools, earns almost no interest--
20 US states have introduced bills for publicly owned banks.
Globally 40% of banks are publicly owned-- mostly in BRIC states. By 2040 BRIC states will overtake G6. One of the secrets of their success is their banks work for the public.
Original public bank in the US was a Quaker bank in PA in Ben Franklin's day.
No taxes, no inflation, no government debt.
US debt has not been paid off since 1835.
In past 24 years US has paid $8.2 trillion in interest on $15 trillion in debt.
There is less corruption in public banks-- and more profit.
Single Payer and Public Banking
There are some exciting connections and commonalities between the movement towards single payer and public banking. Both are challenges to multi trillion dollar industries. Another commonality is finding people to advocate for the change. I've come to the habit of asking, when change is sought, "Qui Bono? Who benefits?" If you can answer that question you can find the low-hanging fruit to recruit to help in the change efforts.
There are a lot of people who are aware of single payer and who support it-- a lot less who are aware of promise of public banking let alone activists working on making it happen. But it is very possible that Public Banking could succeed before single payer does. That's because it can be implemented on a much smaller scale. And Mark Armstrong, Executive Director of the Public Banking Institute, told me that the clearest beneficiaries of Public banking are community banks. He also says that community banks are being royally screwed by the new Dodd Frank Bank legislation going into effect-- to the benefit of big banks.......
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The Linchpin Tipping Point to REVERSE Centuries of Top Down, 1% Power and Privatization? (Original post)
Response to Segami (Original post)
Fri Dec 7, 2012, 01:01 PM
GitRDun (473 posts)
1. I hope they make some headway!
I think the fact the state banks act as mini feds in their states is what makes them work. They are putting up capital to community banks / credit unions and lending with proper underwriting, etc.
I really think that we as citizens would be in great shape with 3 changes to finance in general:
1). Get deposits / credit card borrowing out of the big banks into local institutions.
2). Use the state run banks to provide lending capital to those local institutions.
3). Establish a federal infrastructure bank to assist state and local governments.
If we can pull retail banking to the local level, backed by state banks, I think it accomplishes what we need without putting states in the position of competing with private industry. Small local banks are much more likely to aggressively compete than the large banks. Further, the state banks can easily "regulate" how lending gets done if they are to participate, e.g., underwriting standards, deceptive language, etc.
Response to Segami (Original post)
Fri Dec 7, 2012, 01:56 PM
mick063 (2,424 posts)
3. I'm looking at you #Occupy
At one time, I heard a hint of the occupy movement "bypassing" the "system" by starting their own financial services institution. A means for people to circumvent the 1%.
Get it done. There would be many that would opt for the alternate route.
The attorneys for Fox, owned by media baron Rupert Murdoch, argued the First Amendment gives broadcasters the right to lie or deliberately distort news reports on the public airwaves.