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North Dakota broke new ground nearly a century ago, but the true potential of publicly owned banks remains to be explored. Nearly all of our money today is created by banks when they extend loans. (See the Chicago Federal Reserve’s “Modern Money Mechanics," which begins, “The actual process of money creation takes place primarily in banks.”) We the people have given away our sovereign money-creating power to private, for-profit lending institutions, which have used it to siphon wealth from the productive economy. If we were to take that power back, we could generate the credit we need to underwrite a whole cornucopia of projects that we don’t even consider because we think we lack the “money.” We have the labor and we have the materials; we just lack the “liquidity” necessary to put them together to create products and services.
Money today is just a ticket, a receipt for work performed and goods delivered. We can fund the work we need done by creating our own credit. The real promise of publicly-owned banks is not that they can bail out subprime borrowers but that they can jumpstart the economy by creating real wealth. They can provide the liquidity to put labor and materials together, allowing the economy to build and grow. Our private, profit-driven banking sector has been bleeding wealth from the rest of the economy. Public-interest banks can transfuse the economy with the credit it needs to flourish and be productive once again.
Originally posted by Dermo
reply to post by Leo Strauss
Only problem with that is it is essentially Financial Socialism and will lead to slower growth
Yes, I am in favor of this...seems the most logical step. But not the fed...state to state.
doesn't really apply for this I don't think .. Changing the banking sector to a taxpayer owned system in the middle of a recession like this is financial suicide because the toxic debts will be owned by the taxpayer then as opposed to being owned by the banks.. Even if the taxpayer is bailing out those banks to stabilize the debts, the bailout money will be returned.
slower growth or rapid decline
Originally posted by Leo Strauss
Do you know if the French system is national or provincial?