posted on Nov, 23 2009 @ 11:16 AM
FL Governor Candidate Khavari: The Era of Commercial Banks Is Over; State Banks Are the Future
MIAMI, Nov. 23, 2009 — Noted economist Farid Khavari, a Democratic candidate for Florida governor, has gained national and international attention
for his plan to create a state-owned bank in Florida.
“Not since the Great Depression has it been so clear,” said Khavari. “We need banks that work for the benefit of the people, not people working
for the benefit of the banks. There is no mystery why we are facing another depression: the banks got greedy and stupid, and now they are making us
pay for it.
“The economy is collapsing due to lack of demand. The economy needs money, but the banks are cutting credit, and then sucking all the cash out of
the economy by raising interest rates to make sure no one has any cash left at the end of the month. The cost of interest is built into the cost of
everything. People already work ten years of their lives just to pay interest in one form or another. The Bank of the State of Florida will end that
for Floridians. And this model will work for every state.
“We can start the BSF at no cost to taxpayers. We can pay 6% interest on savings. Using the same fractional reserve rules as all banks, we can
create $900 of new money through loans for every $100 in deposits. We can loan that $900 in the form of 2% fixed rate 15-year mortgages, for example,
and the state can earn $12 every year for every $100 in deposits. That means Floridians can save tens of billions of dollars per year while the state
earns billions making it possible for them.
See full article at:
I think this sounds to good to be true.
Some call it "socialism". Is it?
If this plan is truly a workable economic fix, why has it not been sugested before
Any Economists out there who would care to chime in on this proposal of khavari ?