Ellen Brown has reported that the public bank option is gaining support. According to Brown, four states are considering the concept, which is a proven banking system for North Dakota. This end run around the useless Too-Big-To-Fail comatose banks is a real threat to Wall Street. But this concept is perfectly legal. The four states considering the bill are Michigan, Washington, Illinois, and Massachusetts.
I have written about the "Move Your Money" concept and certainly this public bank system would strengthen the community banks. Perhaps in the aftermath of this states rights movement, Ben Bernanke wants absolute control over the smaller community banks. Indeed, if these banks caused the economy to grow, he would have less ability to tamp down inflation by controlling lending, as he does now by giving banks the option to borrow low and invest in treasuries instead of main street.
Ben would have to go back to monetary policy or capital requirement controls to control the overheating of the economy. That would be good because it would mean that ponzi housing scams and the like would not be so manageable. We don't want them to be manageable because we don't want them to happen. If big banks knew that they were vulnerable to assured destruction in the face of their ponzi excesses, then the likelyhood of anything like this happening again would diminish.
Indeed, the public state banks could diminish the power of the New World Order in economics.
Not only have these four states opted to consider the state bank concept, but there are seven candidates running on the state bank platform. Ellen Brown has reported that these candidates view Washington as having abdicated responsibility for making sure that the states can keep their budgets under control. She makes the case that the only state left with a surplus is the only state with a public state bank, North Dakota.
It is time that the issuance of money be returned to the people, and indeed, through state public banks this would be the effect. I hope that we can get behind the concept. We could even nationalize the Fed to make sure that lending is placed with effective banks, not comatose ones.
The Fed, then, would have still power to control the overheating of the economy by the tried and true methods of interest rate control or by simply requiring higher capital requirements for all banks. For those who think that interest rate control is not the way to go, then perhaps that method could be abandoned in favor of simply requiring the higher capital requirements in times of excess money creation.
Then there would be no more stealing from the taxpayer in order to make banks whole. This simply must stop and banks cannot profit off treasuries in the way that they have been doing. Most of us are in agreement that stealing from the treasury is a bad idea. This idea of state banks that Ellen Brown has championed for some time may just be the way to rescue main street from the excesses of Wall Street and rescue the average Joe from the credit crisis.
Disclosure: No positions