Hurricane Sandy, the Great Red River Flood, the Philadelphia interest swap crisis, and public banking

I’ve been traveling and speaking for most of the last month and will be again in November, so haven’t managed to get an article out; but here are three posts on public banking that came out in the last week that I think are excellent:

How the Public Bank of North Dakota saved Grand Forks
November 03, 2012

(GRAND FORKS, N.D.) — As the nation watches the aftermath of the destructive Hurricane Sandy in New York and New Jersey, it may be instructive to compare another cleanup 15 years ago in North Dakota after another natural disaster – the massive flooding of the Red River and the fire in downtown Grand Forks. . . .

Read more here.

October 30, 2012

. . . The short of it is, Wall Street bankers end up earning billions in fees no matter whether state and municipal financial products succeed or fail. . . .Mike Krauss focuses on the disastrous effects this has had in Philadelphia: the city has lost $500 million dollars to these interest swap products alone. . . .

Read more here.

Mike Krauss’s fiery testimony before the Philadelphia City Council on October 25th is here.

5 Responses

  1. Bank of America and Wells Fargo are too big to fail putting them above suffering any consequences they may deserve. Replacing them with small public banks is THE ONLY SOLUTION!

  2. Apart from the 3 links provided here, which I will follow up later, the link to “QE Infinity: What is it all about?” has already been discussed in October. But the following content re the FDIC caught my eye.

    “Most (Bank) failures are resolved using the Merger Option”
    “The leading example was Continental Illinois, the 7th largest Bank in the country when it failed in 1984. THE FDIC WIPED OUT THE EXISTING SHAREHOLDERS, INFUSED CAPITAL, TOOK OVER BAD ASSETS,REPLACED SENIOR MANAGEMENT, and owned the Bank for about a decade,running it as a commercial enterprise. In 1994, it was sold to a Bank that is now part of the Bank of America.”

    I don’t have all the details in front of me, but this seems an act of extraordinary generosity by the Govt (Using taxpayers money) to rehabilitate a failed business, getting it back “on the rails”, and handing it back to “The Moneymen” (Socialism for the Rich?)
    And it contradicts the Reaganite/Ayn Rand mantra, that only private enterprise can successfully run business.

    (The same process occurred in Australia at the same time with the govt owned State Banks which had to be “rescued” and merged with the “Big Four” commercial Banks.)

    Time for America, and every one else to realise that this “Concentration” of the world banking industry, into the hands of the few, is not entirely a coincidence.
    And this “Concentration” process, shows well and truly that Banks MUST be supervised properly, and any failures, due to reckless management, must follow its natural course, ie Bankruptcy.

    • Monopoly Banks control the economy of most nations and, thus they must be broken up into small banks whose viability must be protected by the country’s government.

  3. QE4 Disaster Relief

    Gov Christie, Gov Cuomo, Mayor Bloomberg, Mayor Booker,
    and all Governors and Mayors of all States that need Disaster Relief now.

    Join forces. Have your four vocal representatives contact the President, the Sec. of the US Treasury, and Chairman of the Federal Reserve Use the power of social and mass media to help your people NOW.
    Have the American financial system rush to the rescue with a generous and flexible legal funding that no other country could match.
    Not a bailout.
    Not a cost to all the taxpayers.
    Not an increase in deficit spending.
    A simple change in direction of doing something for all the people, the 100%
    that are in need.
    The present 10 states that are in need are to partake in an
    “Emergency Relief Bonds of 2012”.
    Total amount to be issued to be $100 billion, with a rate of 2% for 36 years.

    1. The Federal Reserve is to STOP purchasing under QE3 (sometimes called QE Infinity) and PURCHASE this entire issue.
    The Fed has already proven that it can do this at a profit to the US Treasury (“we the people” and with no increase in the debt (it is an asset purchase).
    The individual states shall divide these funds among themselves depending upon their individual needs.
    Rebuild homes and factories,roads and transportation, carry a new mortgage at 2% for 36 years. They shall not increase the tax burden of their citizens.

    Read more:

  4. they should pay each of us a royalty fee for each dollar they print, coin they mint and electronic money they create-leonard orr
    they ought to be paying each of us amerians a didvidend weekly for the privilege of running the franchise of government,

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