Ellen Brown: Banking Crisis 3.0: Time to Change the Rules of the Game | Scheerpost

[Scott]

Just finished reading this article, thought it was really good. I'll quote the conclusion which I think points to a solution to recent U.S. banking troubles:

**
The Public Bank Option

Meanwhile, one midsize bank that has escaped this furor is the Bank of North Dakota. With assets in 2021 of $10.3 billion and a return on investment of 15%, the BND is owned by the state, which self-insures it. There is no fear of bank runs, because the state’s revenues compose the vast majority of its deposits, and they must be deposited in the BND by law.

The state’s local banks are also protected by the BND, which is forbidden to compete with them. Instead, it partners with them, helping with liquidity and capitalization. The BND has been called a “mini-Fed” for the state and its banks. That helps explain why North Dakota has more local banks per capita than any other state, at a time when other states have been losing banks to big bank mergers, causing the number of U.S. banks to shrink radically.

UK Prof. Richard Werner recently published a briefing memo supporting the case for a public bank. It was prepared for the state of Tennessee, which is considering a sovereign state bank on the North Dakota model, but the arguments apply to all states. Benefits discussed include dividends, higher state-level tax revenues, greater job creation, greater local autonomy and resilience to shocks, more options for funding public sector borrowing and state pension funds, and protection of financial transaction freedom and privacy.

Small and local is good, but even small regional banks need to pool their resources for maximum efficiency and security. A state-owned bank on the model of the Bank of North Dakota can provide low interest loans, liquidity, and financial sovereignty, keeping financial resources in the state directed to public purposes, all while turning a profit for the state.
**

Full article:
Ellen Brown: Banking Crisis 3.0: Time to Change the Rules of the Game | Scheerpost

 

[Nordberg]

The wealthy and powerful will grind away at regulation to increase their personal wealth. They are relentless and donate to political campaigns. We could at least replace Glass Steagal.

 

[Lionfish]

 

[Scott]

The wealthy and powerful will grind away at regulation to increase their personal wealth. They are relentless and donate to political campaigns.

Agreed. But what do you think of the solution Ellen Brown proposes, to have more government owned banks, at least at the state level, like the Bank of North Dakota?

We could at least replace Glass Steagal.

Sure, but without more real competition to private banks, I suspect they'd just repeal it again as they have before. I think the Bank of North Dakota model offers the only real solution.

 

[Scott]

 

[Lionfish]

 

[IBDaMann]

Just finished reading this article, thought it was really good.

The article is crap. Ellen Brown is a Green Party Marxist who is dishonestly fabricating a "crisis" to push her extremist agenda.

Let's take a closer look:

The Failed Banks Were Not Nationalized, But Maybe They Should Have Been
One option that was debated in the 2008-09 crisis was actual nationalization. As Prof. Michael Hudson wrote in February 2009:

Real nationalization occurs when governments act in the public interest to take over private property. … Nationalizing the banks along these lines would mean that the government would supply the nation’s credit needs. The Treasury would become the source of new money, replacing commercial bank credit.

Apparently she thought paraphrasing and embellishing upon the Communist Manifesto would be the most effective:

Communist Manifesto
5. Centralisation of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.

There is no crisis. We do not need Communism.

 

[Nordberg]

Agreed. But what do you think of the solution Ellen Brown proposes, to have more government owned banks, at least at the state level, like the Bank of North Dakota?



Sure, but without more real competition to private banks, I suspect they'd just repeal it again as they have before. I think the Bank of North Dakota model offers the only real solution.

I saw the MD banks long ago and notice how they were not suffering like the rest. But bankers and financial giam\nts will do all they can to stop them. https://www.pewtrusts.org/en/resear.../12/14/your-state-could-decide-to-open-a-bank

 

[Scott]

I saw the MD banks long ago and notice how they were not suffering like the rest. But bankers and financial giam\nts will do all they can to stop them. https://www.pewtrusts.org/en/resear.../12/14/your-state-could-decide-to-open-a-bank

What does MD stand for? Anyway, from your article, looks like you agree that state owned banks may be the solution.

 

[Nordberg]

State banks are better for the people as a whole. https://ilsr.org/rule/bank-of-north... is the only,institutions… within the State.”

 

[Nordberg]

What does MD stand for? Anyway, from your article, looks like you agree that state owned banks may be the solution.

It stands for mistyping ND

 

[Scott]

The article is crap. Ellen Brown is a Green Party Marxist who is dishonestly fabricating a "crisis" to push her extremist agenda.

Let's take a closer look:



Apparently she thought paraphrasing and embellishing upon the Communist Manifesto would be the most effective:



There is no crisis. We do not need Communism.

Why do you think there is no crisis? In any case, I don't think anyone is claiming that North Dakota is communist. Having the state handle some things doesn't mean that it's therefore communist. In the last banking crisis, the government handed out a lot of money to banks who essentially gambled with their money. Do you think that was the right course of action?

 

[IBDaMann]

Why do you think there is no crisis?

For the same reason you can't show me any Global Warming, you can't show me any "bank crisis." Why should any rational adult believe your hype that there is some undefined "bank crisis" over which we should panic and convert to communism?

In any case, I don't think anyone is claiming that North Dakota is communist.

Great pivot. I'll just presume that you never learned that the Communist Manifesto contains communist dogma or that Karl Marx espoused Marxist ideology ... and you probably aren't smart enough to figure it out on your own. It's good for you that you have me here to tell you these things.

Having the state handle some things doesn't mean that it's therefore communist.

I'm getting the distinct impression that you cannot read. It seems to be the most likely explanation for why you cannot seem to respond to what I wrote and are only responding to things I did not write.

Giving the State a monopoly on credit is one of the planks of Marxist communism and is therefore definitely communist. How did your logical ineptitude reach the point that you can't even put 1 and 1 together? Have you read the Communist Manifesto so that you can know what would constitute communism? Would you even be able to read the Communist Manifesto?

Anyway, the Communist Manifesto has been around for a long time and the ideology is very bad ... ruinous, in fact. You should learn to recognize it instead of gullibly believing that it somehow forms "a good solution" ... especially to invisible, undefined "crises" that you cannot show.

 

[IBDaMann]

Yeah, that's the fractional reserve system for you, only it misses the part that banks charge an interest rate that's well above inflation. It's a bit complicated, but I found that the following documentary from canadian artist and film maker Paul Grignon does a great job of explaining how it came to be, the problems with it, and solutions (it actually includes the idea of cryptos in it too)

The video is crap. Its target audience is all the economics-challenged losers who absolutely suck at accounting. One has to be exceedingly gullible to lend any credence to the video.

 

[Lightbringer]

Just finished reading this article, thought it was really good. I'll quote the conclusion which I think points to a solution to recent U.S. banking troubles:

**
The Public Bank Option

Meanwhile, one midsize bank that has escaped this furor is the Bank of North Dakota. With assets in 2021 of $10.3 billion and a return on investment of 15%, the BND is owned by the state, which self-insures it. There is no fear of bank runs, because the state’s revenues compose the vast majority of its deposits, and they must be deposited in the BND by law.

The state’s local banks are also protected by the BND, which is forbidden to compete with them. Instead, it partners with them, helping with liquidity and capitalization. The BND has been called a “mini-Fed” for the state and its banks. That helps explain why North Dakota has more local banks per capita than any other state, at a time when other states have been losing banks to big bank mergers, causing the number of U.S. banks to shrink radically.

UK Prof. Richard Werner recently published a briefing memo supporting the case for a public bank. It was prepared for the state of Tennessee, which is considering a sovereign state bank on the North Dakota model, but the arguments apply to all states. Benefits discussed include dividends, higher state-level tax revenues, greater job creation, greater local autonomy and resilience to shocks, more options for funding public sector borrowing and state pension funds, and protection of financial transaction freedom and privacy.

Small and local is good, but even small regional banks need to pool their resources for maximum efficiency and security. A state-owned bank on the model of the Bank of North Dakota can provide low interest loans, liquidity, and financial sovereignty, keeping financial resources in the state directed to public purposes, all while turning a profit for the state.
**

Full article:
Ellen Brown: Banking Crisis 3.0: Time to Change the Rules of the Game | Scheerpost

I think this is a bad idea for many reasons not least of which it will draw crony capitalists like flies to shit.

 

[Scott]

Just finished reading this article, thought it was really good. I'll quote the conclusion which I think points to a solution to recent U.S. banking troubles:

**
The Public Bank Option

Meanwhile, one midsize bank that has escaped this furor is the Bank of North Dakota. With assets in 2021 of $10.3 billion and a return on investment of 15%, the BND is owned by the state, which self-insures it. There is no fear of bank runs, because the state’s revenues compose the vast majority of its deposits, and they must be deposited in the BND by law.

The state’s local banks are also protected by the BND, which is forbidden to compete with them. Instead, it partners with them, helping with liquidity and capitalization. The BND has been called a “mini-Fed” for the state and its banks. That helps explain why North Dakota has more local banks per capita than any other state, at a time when other states have been losing banks to big bank mergers, causing the number of U.S. banks to shrink radically.

UK Prof. Richard Werner recently published a briefing memo supporting the case for a public bank. It was prepared for the state of Tennessee, which is considering a sovereign state bank on the North Dakota model, but the arguments apply to all states. Benefits discussed include dividends, higher state-level tax revenues, greater job creation, greater local autonomy and resilience to shocks, more options for funding public sector borrowing and state pension funds, and protection of financial transaction freedom and privacy.

Small and local is good, but even small regional banks need to pool their resources for maximum efficiency and security. A state-owned bank on the model of the Bank of North Dakota can provide low interest loans, liquidity, and financial sovereignty, keeping financial resources in the state directed to public purposes, all while turning a profit for the state.
**

Full article:
Ellen Brown: Banking Crisis 3.0: Time to Change the Rules of the Game | Scheerpost

I think this is a bad idea for many reasons not least of which it will draw crony capitalists like flies to shit.

I think the reverse is true. The problem with private banks is that they are much less accountable to the electorate. The North Dakota Bank, being run by the government of North Dakota, is clearly accountable to the electorate.

 

[NiftyNiblick]

Clinton kissed Newt's ass by signing the Glass-Steagall repeal,

Trump eviscerated Dodd-Frank,

and here we are again.

Are we the dumbest fucking people on the face of this planet?

At the very least, we have to be in the discussion.

 

[Lightbringer]

I think the reverse is true. The problem with private banks is that they are much less accountable to the electorate. The North Dakota Bank, being run by the government of North Dakota, is clearly accountable to the electorate.

They have depositors, why should they be accountable to the electorate at all? You're espousing fascism.

 

[Lightbringer]

Clinton kissed Newt's ass by signing the Glass-Steagall repeal,

Trump eviscerated Dodd-Frank,

and here we are again.

Are we the dumbest fucking people on the face of this planet?

At the very least, we have to be in the discussion.

I don't know about we but you are.

 

[Lionfish]

Here are a few of the people who managed Silicon Valley Bank (SVB) on its 12-member board of directors:


— Kate Mitchell, 64, a Hillary Clinton mega-donor and diversity champion who went to a Shinto shrine to pray after Donald Trump won the White House.

— Mary J. Miller, 67, Obama’s undersecretary of domestic finance before her own run for Baltimore mayor failed spectacularly (her PAC sent an awkward email to potential donors saying her campaign strategy was to target white voters.)

— Garen K. Staglin, 78, a prolific Democrat contributor, including Nancy Pelosi who owns a Napa Valley vineyard just 15 minutes from the Pelosi’s vineyard.

-- Elizabeth “Busy” Burr, 61, who is implementing DEI as the interim CEO of RiteAid, and is a longtime improv actor.

— Former Congressman Barney Frank, 82, who ironically was co-author of the biggest bank security law in history, the Dodd-Frank Act. According to the Boston Herald, Frank has earned $2.4 million since 2014 for his great work on the board.

Want to know how many people with ANY relevant banking experience were on the board?

ONE — Tom King, 63, who retired from finance at Barclays Bank in the UK. Of the twelve, only one was under 60, and Frank, the oldest, is 82. The board is 41% female.

All the board members donated to Obama, Clinton, and Biden, as well as to local Democratic congressional reps (including Pelosi), as well as political action committees for Senate Majority Leader Chuck Schumer and Senator Mark Warner (D-Va.), a longtime member of the powerful Senate Banking Committee. That was lucky, huh?

That, folks, is how you do it. Get woke, go broke, get bailed out, start over.