State-owned Banks End Wall St. Fraud With Competent Citizenry (Video)

Carl Herman, Contributing Writer
Activist Post

The US suffers from debt-damned economics: a Robber Baron-era paradigm whereby the harder Americans work, the more in debt we collectively descend. The reason is Orwellian confusion between “money” (which the US does not create and use to facilitate trade) and “debt/credit” (which our government says is “money” and what is created). Our modern-day Robber Baron/oligarchs maintain this confusion with the willing help of US corporate media.  So, what do competent citizens do to stop transferring literally trillions of dollars of benefits every year from working Americans to these parasitic oligarchs?

With competent citizenry that understands, demands, and holds our group work (government) accountable for transparency, I recommend two concurrent strategies:

1. Unleash tens of thousands of state and city legislators on the idea that under current laws and regulations, they can form their own banks. The benefit is at-cost credit instead of current borrowing costs. For example, California would save ~$5 billion in interest costs every year with at-cost credit (this would re-hire 20,000 laid-off teachers at $70,000/year and still have $1.6 billion left-over). At-cost credit could also mean at-cost public mortgages (think 1-2% interest rate). The one state with the foresight to have their own bank and create their own credit rather than beg to Wall Street is North Dakota: the only state with a growing budget surplus. This is a function of at-cost credit, and has nothing to do with the specific use of the credit; that is, the savings apply equally to every state and their unique circumstances of using money.

2. National monetary reform to create a “money supply” rather than government-issued debt securities. This breakthrough ends our national debt, allows government to be the employer of last resort for infrastructure investment for full-emloyment and the best infrastructure we can imagine, and provides trillions of dollars in annual benefits compared with our current parasitic debt system.