Fixing the Economy with State Owned Banks

Ellen Hodgson Brown explains the rationale behind state owned banks. Due to the collapsing credit bubble which in turned popped the housing bubble, leading to recession, and perhaps, economic depression, there is not enough money and credit to keep the economy running. Three possible solutions are that the federal government issue debt-free money directly, that communities create alternate or community complementary currencies, or that a state create its own state owned bank, similar to the Bank of North Dakota. For example, a state owned bank in Michigan could provide credit to the state itself for infrastructure projects, help provide the capital for local banks, so they could in turn provide low interest loans to home owners, small and medium sized businesses, and students. In addition, a state owned bank could be used to help fund state expenses during tough times by providing loans.

A major advantage of a state owned bank is that the state could borrow money from the bank at zero interest, for projects, saving between 50% and 100% of the cost of the project, since there would be no interest burden when repaying the loan. For Michigan, California, Florida, and other states looking to solve their economic problems, the state owned bank model, and the Bank of North Dakota in particular, should be studied in depth, as such a bank could provide the credit needed within that state economy during depressions and other tough economic times. Thanks to Local Future for producing this video.

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9 Responses

  1. Interest is unnecessary. It kills nations and must be banned.

  2. Yes, state owned banks are great, as long as they switch from DEBIT banking to CREDIT banking, and get rid of the FED.
    Community banks are the best, cheapest, most logical way to rectify the global economic chaos and to keep our money in the hands of those who earn it.
    Interest is the sole cause of our economic collapses, and is a gross lie, conjured up by the bankers, many years ago, to rip off the public.
    Interest on bank loans to both governments and the public can never be paid, so, to fix the problems we have, it is essential we chance the economic system, not play around with pretend, bank flavoured, artificial quick fixes.

  3. Ellen, public banks are a step in the right direction. Anything that establishes greater decentralization of finance and production and distribution creates proportional local stability and independence, which is good. I think that complete independence is the objective. Authentic democracy is contingent on a “democratized economy,” which is contingent on real community and community confederations and confederated confederations. Real independence from the central bank and its bogus government, and its economies of scale is the ultimate objective. We do not need them. We need sovereign communities in decentralized civilization. Authentic democracy only functions in small populations, which is a structural challenge. That, my friend, in these perilous times, is our last and only option.

  4. A fourth way: Reopen the Mint to Gold and Silver. Allow citizens to bring their gold and silver to the Mint and have coins (money) minted. There by allowing letting citizen actually create money! Like this:

  5. […] of his other proposed solutions regarding Africa. One possible solution not mentioned is African publicly owned, state banks, which may need to involve a currency board initially (scroll to 1:30). Please check out […]

  6. Ms. Brown,
    Thank you so much for what you are doing. Hopefully we can educate enough of the people about what is happening and how to fix it, before we are totally under the heal of the Economic Royalists. Its a long shot, given man’s history of enslavement of the many by the few. I am somewhat convinced that we are in need of a great financial crash with the possibility of bank reform as we witnessed during the great depression. On the other hand, this time we may see marshal law and the elimination of people like you and me.

  7. Right now an attempt is being made to force the Bank of Canada to return to this system of 0% loans to government. Google “comer vs BOC” for info.Could be earth – shattering if case is won, other nations would follow Canadas lead – maybe USA even ?

  8. It is imperative that we do start going in this direction….I figure that if/ when there’s another crash the bank takes our money and what, when we do have to deposit more that too is gone??? Providing, that is, that you have a cash store to deposit.
    I would love to see what will remain as the big 5 (not the sporting goods store, but banks) go down because we the little people now would have an alternative to private banking and their inflated rules as well.
    The idea of being state reliant and not federally mandated money given with all the strings attached is empowerment. It is local government being it own sustainable source and resource to getting this country back on it feet. Strength at this level IS taking OUR power from the federal government away. SIGN ME UP!!!!

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