Finally a goddamn great idea……..but the Centrists will beat it back to make their owners, the banks, happy.
I have been railing against the bankers and their rape of the American society…..bitching for decades and most Americans know that these robbers are corrupt and yet we seem to not care…..
Finally someone in Congress has stepped up to offer a new way of banking….we can always pretend the the Obama admin did some good but any progress has overturned and the problems with banks have returned and gotten worse.
Like I said a new way of banking…..but what is Public Banking?
Public banking is banking operated in the public interest, through institutions owned by the people through their representative governments. Public banks can exist at all levels, from local to state to national or even international. Any governmental body which can meet local banking requirements may, theoretically, create such a financial institution.
Public banking is distinguished from private banking in that its mandate begins with the public’s interest. Privately-owned banks, by contrast, have shareholders who generally seek short-term profits as their highest priority. Public banks are able to reduce taxes within their jurisdictions, because their profits are returned to the general fund of the public entity. The costs of public projects undertaken by governmental bodies are also greatly reduced, because public banks do not need to charge interest to themselves. Eliminating interest has been shown to reduce the cost of such projects, on average, by 50%.
But we already have banks…why do we need a “public bank”?
Today, cities and states put their money in Wall Street banks, allowing those banks to leverage our public funds in order to dominate the financialized speculative economy rather than reinvesting them in our communities. At the same time, cities and states borrow money from Wall Street institutions and bondholders at high interest rates and pay large fees to keep money in their banks. This is not a cost-effective way to do business. Cities and states could be keeping their public dollars and leveraging them for their own community needs.
With city and state-owned banks, we cut out Wall Street middlemen. Our community’s cash stays home to benefit us! Bank fees are eliminated, interest costs drop, and public bank profits are reinvested into our communities.
Public banks can help us create the communities we want. We want parks, good roads, safe bridges, clean energy, and housing we can afford. We want lower interest rates for local small business loans, local control of our tax dollars, investment in our local communities, and ethical and transparent financial institutions managing our public funds. Public banks can be the financial engine that makes this happen for our communities.
There a few facts that need to be shown why a public bank is a better idea than the robbers we have to deal with today….
- Are owned by the people of a state, city, community, or nation;
- Serve as the depository for local government funds (city or state taxes, fees, etc.);
- Are required to benefit the public by serving local community needs;
- Can save state and local governments millions or even billions of dollars, by cutting out middlemen and private shareholders, eliminating fees, and financing projects at lower interest rates;
- Reinvest bank profits into the community, providing a new source of income for cities and states and a source of funding for projects such as infrastructure, renewable energy and affordable housing;
- Are run, not by politicians, but by qualified bankers serving a public mission;
- Provide accountability and transparency to the public for bank decisions, avoiding the risks of Wall Street’s speculative gambling;
- Create new jobs and spur economic growth by supporting local small businesses;
- Partner with and support rather than competing with local community banks;
- Can lend during times of stress and crisis, helping to sustain a healthy local economy.
Now a couple Progressives in the House are offering up a plan for an expansiom of public banking…..
A public option, but for banking. That’s what Reps. Rashida Tlaib and Alexandria Ocasio-Cortez are proposing in a new bill unveiled on Friday.
The Public Banking Act, first shared with Vox, wouldn’t create those options by itself, but would foster the creation of public banks across the country by providing them a pathway to getting started, establishing an infrastructure for liquidity and credit facilities for them via the Federal Reserve, and setting up federal guidelines for them to be regulated. Essentially, it would make it easier for public banks to exist, and it would give some of them grant money to get started.
While it sounds a little wonky, the basic idea is to make it possible for state and local governments, local businesses, and people to do business with public banks, which theoretically would be more motivated to do public good and invest in their communities than private institutions, which are out for profit. One public bank exists in North Dakota, and there is a growing movement to create more of them across the country. California recently passed a law allowing cities and counties to create and sponsor public banks.
Another great idea but the Centrists will kill this before it has a chance…..Citibank and others will NOT allow this to move forward.
I Read, I Write, You Know
“lego ergo scribo”