Posted on December 21, 2016 by Ellen Brown
It has been called “a bigger risk than Brexit”– the Italian banking crisis that could take down the eurozone. Handwringing officials say “there is no free lunch” and “no magic bullet.” But UK Prof. Richard Werner says the magic bullet is just being ignored.
On December 4, 2016, Italian voters rejected a referendum to amend their constitution to give the government more power, and the Italian prime minister resigned. The resulting chaos has pushed Italy’s already-troubled banks into bankruptcy. First on the chopping block is the 500 year old Banca Monte dei Paschi di Siena SpA (BMP), the oldest surviving bank in the world and the third largest bank in Italy. The concern is that its loss could trigger the collapse of other banks and even of the eurozone itself.
There seems little doubt that BMP and other insolvent banks will be rescued. The biggest banks are always rescued, no matter how negligent or corrupt, because in our existing system, banks create the money we use in trade. Virtually the entire money supply is now created by banks when they make loans, as the Bank of England has acknowledged. When the banks collapse, economies collapse, because bank-created money is the grease that oils the wheels of production.
So the Italian banks will no doubt be rescued. The question is, how? Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: bail-in, ECB, European banking union, Italian banking crisis, public banking, quantitative easing | 37 Comments »
Posted on December 7, 2016 by Ellen Brown
To stimulate the economy, create new jobs and generate new GDP requires an injection of new money. Borrowing from the bond markets or off-balance-sheet in public/private partnerships won’t do it. If Congress won’t issue money directly, it should borrow from banks, which create money on their books when they make loans.
The Trump agenda, it seems, is not set in stone. The president-elect has a range of advisors with as many ideas. Steven Mnuchin, his nominee for Treasury Secretary, said in November that “we’ll take a look at everything,”even the possibility of extending the maturity of the federal debt with 50-year or 100-year bonds to take advantage of unusually low interest rates.
Steve Bannon, appointed chief White House strategist, seems to be envisioning Roosevelt-style experimentation with whatever works. Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: banks create money, infrastructure financing, public banking, Trump infrastructure plan | 70 Comments »
Posted on November 30, 2016 by Ellen Brown
Here are my latest efforts at presenting the public banking model by power point. The longer version was at an event in Englewood, CO, on October 30, called “Taking Back the Money Power: The Public Option in Banking.” The shorter version was at an event in Santa Rosa, CA, on November 9 called “Cannabis Cash and Public Banking.” My part was on public banking in general, followed by Marc Armstrong who spoke on how a public bank could serve the newly legalized recreational cannabis business. Many thanks to Earl Staelin for the Colorado event and Shelly Browning for the Santa Rosa event. Great fun!
Filed under: video | Tagged: cannabis banks, public banking | 7 Comments »
Posted on October 18, 2016 by Ellen Brown
School districts are notoriously short of funding – so short that some California districts have succumbed to Capital Appreciation Bonds that will cost taxpayers as much is 10 to 15 times principal by the time they are paid off. By comparison, California’s Prop. 51, the school bond proposal currently on the ballot, looks like a good deal. It would allow the state to borrow an additional $9 billion for educational purposes by selling general obligation bonds to investors at an assumed interest rate of 5%, with the bonds issued over a five-year period and repaid over 30 years. $9 billion × 5% × 35 equals $15.75 billion in interest – nearly twice principal, but not too bad compared to the Capital Appreciation Bond figures.
However, there is a much cheaper way to fund this $9 billion school debt. By borrowing from its own state-chartered, state-owned bank, the state could save over $10 billion – on a $9 billion loan. Here is how. Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: infrastructure financing, Prop 51, public banking, state-owned bank | 33 Comments »
Posted on October 8, 2016 by Ellen Brown
“Fish Rot from the Head”
So says this week’s guest Bill Black about the recent Wells Fargo scandal in which millions of customers were beset with unrequested accounts that cost them fees and affected their credit scores – another in the long line of Big-Bank violations. Black, author of “The Best Way To Rob A Bank Is To Own One” is renowned for obtaining convictions of almost a thousand bankers and sending several hundred of them to prison when he was a Federal regulator back in 1990 during the savings and loan scandal. He talks with Ellen about why that sort of regulatory punch no longer exists. Selling-off public assets and services is discussed by co-host Walt McRee with the Executive Director of In The Public Interest, Donald Cohen, who issued a recent report on how privatization is helping perpetuate economic inequality. Matt Stannard returns on the Public Banking Report to reflect on how Wells Fargo’s scandal hurts everyone at the bank, not just their customers.
Filed under: Audio | Tagged: Bill Black, privatization, public banking | 5 Comments »
Posted on October 6, 2016 by Ellen Brown
I was very pleased to be able to talk to Ralph Nader about public banking on his radio show and to be a presenter at his “Breaking through Power” conference last week. The radio show is here —
and the video is here–
Filed under: Audio, video | Tagged: public banking, Ralph Nader | 6 Comments »
Posted on September 16, 2016 by Ellen Brown
Several central banks, including the Bank of England, the People’s Bank of China, the Bank of Canada and the Federal Reserve, are exploring the concept of issuing their own digital currencies, using the blockchain technology developed for Bitcoin. Skeptical commentators suspect that their primary goal is to eliminate cash, setting us up for negative interest rates (we pay the bank to hold our deposits rather than the reverse).
But Ben Broadbent, Deputy Governor of the Bank of England, puts a more positive spin on it. He says Central Bank Digital Currencies could supplant the money now created by private banks through “fractional reserve” lending – and that means 97% of the circulating money supply. Rather than outlawing bank-created money, as money reformers have long urged, fractional reserve banking could be made obsolete simply by attrition, preempted by a better mousetrap. The need for negative interest rates could also be eliminated, by giving the central bank more direct tools for stimulating the economy. Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: blockchain, central bank digital currencies, fractional reserve lending, public banking | 50 Comments »
Posted on September 16, 2016 by Ellen Brown
How did Scandinavia become the world leader in successful, equitable economies? People. Like the farmers of North Dakota a hundred years ago, the people pushed back against the failures of the controlling economic elite. Author and professor George Lakey talks with co-host Walt McRee about his book “Viking Economics” and discovers many parallels to today’s America. And there’s big news for the public banking movement out of New Jersey with one of the major mainstream candidates for Governor announcing his intention to form a state-owned public bank to address chronic state fiscal issues. Later on the Public Banking Report, Mike Krauss talks about how imperiled pension funds can save themselves by investing in their own public bank.
Listen to the archive here.
Filed under: Audio | Tagged: public banking | 1 Comment »
Posted on August 24, 2016 by Ellen Brown
On the latest episode of “It’s Our Money,” David Morris, co-founder of the Institute for Local Self Reliance, talks with PBI Chair Walt McRee about how to reclaim the narrative that government can and should work well on our behalf. And Ellen Brown talks with “The Earth Belongs to Everyone” author Alanna Hartzok about how our current method of taxation overlooks a more obvious and fair approach based on land and the Earth itself. Listen here.
Filed under: Audio | Tagged: Bank of North Dakota, land value tax, public banking | 17 Comments »
Posted on August 2, 2016 by Ellen Brown
Bernie Sanders supporters are flocking to Jill Stein, the presumptive Green Party presidential candidate, with donations to her campaign exploding nearly 1000% after he endorsed Hillary Clinton. Stein salutes Sanders for the progressive populist movement he began and says it is up to her to carry the baton. Can she do it? Critics say her radical policies will not hold up to scrutiny. But supporters say they are just the medicine the economy needs.
Stein goes even further than Sanders on several key issues, and one of them is her economic platform. She has proposed a “Power to the People Plan” that guarantees basic economic human rights, including access to food, water, housing, and utilities; living-wage jobs for every American who needs to work; an improved “Medicare for All” single-payer public health insurance program; tuition-free public education through university level; and the abolition of student debt. She also supports the reinstatement of Glass-Steagall, separating depository banking from speculative investment banking; the breakup of megabanks into smaller banks; federal postal banks to service the unbanked and under-banked; and the formation of publicly-owned banks at the state and local level. Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: Bernie Sanders, Jill Stein, populist revolution, public banking, quantitative easing, student debt | 40 Comments »
Posted on July 18, 2016 by Ellen Brown
BREXIT, FREXIT, GREXIT – where’s everybody going? The recent vote in the United Kingdom to get out of the European Union is a telling example of how ill-served citizens in the political/financial union are feeling about their status. Such feeling suggests the potential for contagion with other European nations souring on the control of the unelected bureaucrats in Brussels. Ellen talks with a noted international observer Stephen Lendman about this vote and the politics that led up to it and are now playing out.
Matt Stannard reports on another political stage, in NC, where money for local infrastructure depends on compliance with onerous immigration policies. And our What Wall Street Costs America report focuses on the tragic human costs inflicted on Puerto Rico by American hedge funds. Archived here.
Filed under: Audio | Tagged: Brexit, public banking | 1 Comment »
Posted on July 1, 2016 by Ellen Brown
Brexit could trigger a $500 trillion derivatives meltdown, by forcing the EU to allow insolvent member governments and banks to write down debt. Italy is in financial crisis and is already petitioning for that concession. How to avoid collapse of the massive derivatives house of cards? Alternatives are considered.
Sovereign debt – the debt of national governments – has ballooned from $80 trillion to $100 trillion just since 2008. Squeezed governments have been driven to radical austerity measures, privatizing public assets, slashing public services, and downsizing work forces in a futile attempt to balance national budgets. But the debt overhang just continues to grow.
Austerity has been pushed to the limit and hasn’t worked. But default or renegotiating the debt seems to be off the table. Why? Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: Brexit, derivatives, public banking, sovereign debt crisis | 32 Comments »
Posted on July 1, 2016 by Ellen Brown
Mayer Rothschild is famously quoted as saying “Permit me to issue and control the money of a nation, and I care not who makes its laws!” – and so it is. When we look at the distribution of capital, we see that those who control the franchise of creating money through loans and debt rule our world. Ellen speaks with one of the planet’s oldest serving statesmen, Canada’s Paul Hellyer, about the nature of this controlling franchise and about the alternatives still available. Walt McRee speaks with Lisa Cody, a researcher for the Service Employees International Union, who did a landmark study of the outrageous costs Los Angeles has paid private financiers as part of our ongoing series What Wall Street Costs America, and Matt Stannard comments on the increasingly popular idea of providing a basic income to people as one way of balancing the scales against the controlling interests. Archived here.
Filed under: Audio, Ellen Brown Articles/Commentary | Tagged: Paul Hellyer, public banking, Wall Street costs | 3 Comments »
Posted on June 11, 2016 by Ellen Brown
Posted on June 2, 2016 by Ellen Brown
The Bank of North Dakota started a century ago with the simple goal of service to citizen victims of the Wall Street monopoly. It now inspires the hopes of citizens nationwide, as they struggle to wrest their financial freedom from the same financial masters. Ellen talks with Dr. Rozanne Enerson Junker, who got her doctorate studying how this upstart institution took on the big banks and turned a challenged economy into a financial powerhouse of service to its owners, the people of North Dakota. Rozanne is featured in a documentary called “The Bank of North Dakota,” linked below. Walt McRee then talks with Tom Tresser about a new collaborative book called “Chicago is Not Broke – Funding the City We Deserve” — there’s more money laying around than most citizens know. And Matt Stannard discusses What Wall Street Costs America with a focus on Detroit and Harrison, NJ – yet more victims of the global banking cartels that keep America under the thumb of debt servitude. Listen to the archive here.
In Part II of Rozanne’s interview, played on June 8th’s show, we continue our conversation about the founding factors and functional dimensions of America’s only state-owned public bank. Ellen also discusses block-chain technology with co-host Walt McRee, while this week’s What Wall Street Costs America examines the impact of predatory banking costs on the city of Detroit — Matt Stannard talks with Tom Stevens of “Detroiters Resisting Emergency Management.” Archived here.
Filed under: Audio, Ellen Brown Articles/Commentary | Tagged: Bank of North Dakota, public banking | 5 Comments »
Posted on May 14, 2016 by Ellen Brown
“Print the money” has been called crazy talk, but it may be the only sane solution to a $19 trillion federal debt that has doubled in the last 10 years. The solution of Abraham Lincoln and the American colonists can still work today.
“Reckless,” “alarming,” “disastrous,” “swashbuckling,” “playing with fire,” “crazy talk,” “lost in a forest of nonsense”: these are a few of the labels applied by media commentators to Donald Trump’s latest proposal for dealing with the federal debt. On Monday, May 9th, the presumptive Republican presidential candidate said on CNN, “You print the money.” Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: Donald Trump, federal debt, infrastructure crisis, public banking, quantitative easing | 89 Comments »
Posted on May 2, 2016 by Ellen Brown
Despite North Dakota’s collapsing oil market, its state-owned bank continues to report record profits. This article looks at what California, with fifty times North Dakota’s population, could do following that state’s lead.
In November 2014, the Wall Street Journal reported that the Bank of North Dakota (BND), the nation’s only state-owned depository bank, was more profitable even than J.P. Morgan Chase and Goldman Sachs. The author attributed this remarkable performance to the state’s oil boom; but the boom has now become an oil bust, yet the BND’s profits continue to climb. Its 2015 Annual Report, published on April 20th, boasted its most profitable year ever. Continue reading
Filed under: Ellen Brown Articles/Commentary | Tagged: Bank of North Dakota, California economy, public banking | 18 Comments »
Posted on May 2, 2016 by Ellen Brown
Ellen’s noted guest Dr. John McMurtry describes capitalism as being in a cancerous stage in which it’s being devoured from within by metastasizing greed and self-interest. He also talks about why the establishment hates Donald Trump. Matt Stannard looks at how the banking cancer has affected Jefferson County, AL, which declared bankruptcy after buying into toxic interest rates swaps from Wall Street salesmen. The antidote: public banks! Show archived here.
Filed under: Audio | Tagged: capitalism, Donald Trump, Jefferson County, public banking | 2 Comments »
Posted on April 23, 2016 by Ellen Brown
You’ve Been Strip Mined! That’s how Ellen’s guest Les Leopold describes what has happened to the constructive role of capital, such as investment in research and development, expansion and improvement of services and industries. He calls it “economic strip-mining” in which capital speculators like hedge funds strip the equity of companies, countries and consumers to feed their insatiable desire for short term profits – outcomes be damned. We also introduce the new national project and campaign called “What Wall Street Costs America” – the start of a national conversation revealing the massive extraction of public dollars by Wall Street interests. And Matt Stannard reviews presidential politics and bank reform on the Public Banking Report. Archived here.
Next up: Prof. John McMurtry on the Trump phenomenon and the Cancer Stage of Capitalism.
Filed under: Audio | Tagged: Bernie Sanders, Les Leopold, public banking, Wall Street costs | 18 Comments »
Posted on April 1, 2016 by Ellen Brown
Kiss your cash goodbye! The word is that things would be more convenient, crooks would be confounded and diseases might be thwarted if we’d just get rid of filthy currency as the most essential form of personal financial liquidity. Currently circulating in the corridors of world financial powers, it may appear as an enlightened technical step forward to eliminate cash, but is it also a stalking horse for yet another way global bank interests can separate you from your assets? Ellen speaks with renowned author and media figure Stephen Lendman about why this idea is appearing now and what’s happening behind the scenes that’s moving it forward. Also behind the scenes is a huge and stark reality about municipal debt to Wall Street that the Public Banking Institute is targeting in its new project called What Wall Street Costs America. Co-host Walt McRee speaks with PBI’s Matt Stannard on this groundbreaking campaign. Listen here.
Filed under: Audio, Ellen Brown Articles/Commentary | Tagged: cashless society, negative interest, public banking, Wall Street costs | 5 Comments »