The Public Banking Solution. It Is Time.

English: Clockwise from top-left: Federal Rese...
English: Clockwise from top-left: Federal Reserve, Bank of England, European Central Bank, Bank of Canada (Note: Uploaded for use on Wikinews) (Photo credit: Wikipedia)

Posted October 12, 2013

by Jerry Alatalo

It is safe to say that a large percentage of the human race has an awareness, a feeling, that there is something wrong with the banking system on Earth. For most men and women reading these words there is a higher level of awareness about how money becomes created and who owns the world’s private central banks – Federal Reserve, European Central Bank (ECB), World Bank, International Monetary Fund (IMF), and Bank for International Settlements (BIS).

Just as in a small-town bank the wealthiest individuals and families in that town own it, the private central banks in those nations where they operate, in small and large countries, are owned by the wealthiest people on Earth-the “Big Town”. One has memory of Mr. Ross Perot’s famous line delivered in a 1992 presidential debate, not directed toward banks but toward the North American Free Trade Agreement (NAFTA), where he described  a “huge sucking sound” of jobs moving from America to Mexico and other countries where corporations have since set-up shop with employees working for much less money than Americans.

His “huge sucking sound” reference can easily apply to private central banking, where money has been circulating for centuries, with vacuüm cleaner efficiency, up from average citizens, and through the tube to the owners/stock-holders of those banks.

Everyone on Earth now knows what has occurred through history regarding this private central banking phenomena and realize that, like the Jack Nicholson movie, “Something’s Gotta Give”. In an earlier post I predicted that the Federal Reserve as we know it will end. Public banking is an idea whose time has come. Thanks to many men and women around the world, including Ellen Brown in this interview, founder and president of the Public Banking Institute, people are now moving and taking the necessary actions to create public banks.

There are more than twenty states in America which are initiating action to set up state-owned public banks along the lines of the state-owned Bank of North Dakota.

In this interview Ellen Brown stressed the absolute importance of citizens’ becoming fully informed about the public banking solution. She points out that it is essential for as many men and women as possible to have a full and complete knowledge of banking before they can advocate and bring public banks into reality. There is a lot of misunderstanding and ignorance about banking. An excellent place to learn about public banking are at Ellen Brown’s very good websites. Here are two of them:

The Bank of North Dakota is the sole repository of the state’s deposits and revenues. It is a huge deposit and asset base which returns the profits to the bank/people instead of seeing those profits going to Wall Street. Ms. Brown mentions that 40% of banks around the world are state-owned public institutions. She then mentions the BRICS financial alliance (Brazil, Russia, India, China, South Africa) which represents 40% of the population on Earth.

Germany has public banks in some of their cities and counties which facilitate loans at low-interest for local businesses and for infrastructure projects. What is important to note is that public banking has no speculative transactions like Wall Street, where reckless gambling on derivatives, interest rate swaps, and other complex transactions, with customer deposits, led to multi-billion dollar losses which the American taxpayers bailed out. Wall Street operators made huge, risky bets using their customer’s money to earn profits for themselves.

It is casino gambling which has led to hundreds of trillions of dollars in derivatives trading. Bank of America and Chase have upward of 70-80 trillion dollars worth of derivatives on their books. Ms. Brown describes the “shadow banking system”, the wild-west aspect of finance, where operators routinely gamble recklessly with billions of dollars of bets, and super-priority claims of derivatives in bankruptcy cases such as is the current situation in Detroit.

She notes that it is time for a new banking system which will allow none of the massive fraud and corruption which led to the financial crisis of 2008, continuing to this day.

With the next inevitable burst of the financial bubble-since the beginning of the Federal Reserve System in 1913 the boom and bust cycle has marched on relentlessly-the situation will find the nation in a place where there is 25 billion dollars in the FDIC, and the Dodd-Frank provisions by law allow no government bail-out(s). At that point the bankrupt banks will turn to “bail-ins”-the banks will take depositor money to re-capitalize themselves.

Public banking is the solution.


Related articles