Report: Public Banking Can Democratize the Economy

[Donnachaidh]

http://www.commondreams.org/view/2011/06/12-3

In the wake of the financial crisis that the U.S. is still clawing its way out of, a handful of ideas have begun to surface that might actually shore up our still-floundering economy and, potentially, avert future devastation. (No, not the eminently gutless Dodd-Frank bill.) Rather, public banks — also known as state banks or partnership banks — provide a path for the people to harness some economic power of their own in order to build a broad-based, ground-level prosperity which is rooted in their community.

John David, of the Public Banking Institute, recently outlined the basic public banking model for Shareable in great and accessible detail. As evidence of the almost 100 years of success of the Bank of North Dakota (BND), David writes, “Currently, North Dakota ― in part due to the BND’s beneficent influence ― has the lowest unemployment rate in the nation (just over 4%), has no debt to service, has a $1.1 billion surplus, has experienced no bank failures in the state, and is the only state in the last two years to avoid a budget deficit.” Basically, while so many other states were capsizing on the waves of job loss and crashing on the rocks of failed mortgages, North Dakota maintained a smooth and steady course.

Thanks to BND's impressive and indisputable history, the legwork has already been done, the game plan all mapped out. Other states simply need the political will to move their own economies out of the turbulent waters ruled by the pirates of Wall Street. Thankfully, we're starting to see just that sort of action.

In California, AB 750 “would establish the investment trust blue ribbon task force to consider the viability of establishing the California Investment Trust, which would be a state bank receiving deposits of state funds.” The bill, having passed through various committee vetting and approvals, goes to a vote on June 1. With its efforts, California joins Oregon, Washington, Massachusetts, Arizona, Maryland, New Mexico, Maine, Illinois, Virginia, Hawaii, and Louisiana in pursuit of a public bank.

More at the link --

[correaman13]

1. hmmm, why isnt this in the news?

[Donnachaidh]

2. good question -- and welcome to DU!

The journos are still obsessing over weiners, I guess. :shrug:

[Odin2005]

3. OMG, North Dakotans are SOSHULISTS!!!

Whouda thunk it? :rofl: