Public banking, as used here, refers to banks owned by the people through their Federal or State governments. Since 1913, the US has had a private central banking system controlled by a banking cartel (mostly European ownership) called the Federal Reserve Bank. For details on how this came about and who owns it, read Ed Griffin?s classic, The Creature from Jekyll Island. With the enactment of the Dodd-Frank Law, the FED controls all the financial regulatory bodies in the US. Thus, they create debt, make sovereign nation loans independent of the Congress and now regulate themselves. Finally, the Dodd-Frank law has written into it that certain large banks are “too big to fail’ and must be saved by the FED. The FED has a black letter law obligation to use our money to bail out these large banks. This is a sweet deal for the FED, they get the interest from Treasury notes and if any of their loans fail, the US (this means us) bails them out. In short, it is a win-win for them! Both of these laws need to be repealed and removed from the books for America to get back on a path of growth.
What is an alternative to the FED? To find one that worked, we need to look back into our history. In the 1840s and up to the 1880s, the US disbanded the Central Bank and the nation expanded. President Andrew Jackson has been vilified by the controlled media and the banking establishment, right up to this day. However, this period of change provides us with a model that could be followed. It would require public banking and private banking working together to lend, encourage and sustain growth. However, there would be no Central Banking.
Today, the New World Order bankers are demanding that we the people must accept their private central banking debts that the central bankers incurred in sovereign loans and derivatives in order to save their banks. These are trillions of dollars sent to Europe to bail out the European banks. This is unnecessary and frankly foolish. The Glass Steagall law needs to be reenacted. If reenacted, the banks could be broken up into insurance, retail banking and commercial banking by following this law. The separated commercial banks and insurance companies would be left to deal with their derivative folly. Retail banking could continue profitably as is. However the bankers want something else. They want the following:
* Pay off their sovereign loans by honoring them with US taxes.
* Honor the derivatives:
* This is impossible and should not be done. They are in excess of $1,000 trillion and cannot be paid. Yes, you read that right – – – 1,000 Trillion dollars or a quadrillion dollars;
o The derivatives are illegal instruments since they are nothing but “side bets” on the success / failure of an underlying financial instrument. They are not loans and should be treated as worth nothing.
o Consider that these derivative gambling debts are not “banking:. It is collusive White Collar crime among the insurance industry, banking and the politicians.
* Force feed austerity on a nation to pay the Central bankers incurred debts.
* Treat insiders differently. Private banking in Cyprus allowed “selected depositors” in Cyprus to remove reportedly $5 billion from banks offshore before the “Buy In”. This included the assets of about 132 companies and occurred March 1st to the 15th.
* Provide assets to guarantee the new loans. “Bail outs” by the central bankers come with other demands for their profits. They strip national assets such as islands in Greece and national utility companies. They are stolen to “pay” banking debts that the people did not approve.
If followed, the above means that global money control is now the policy of nations. This means that ordinary citizens will have no vote about the terms as wage and benefit cuts are imposed, increased taxes are imposed, sovereign assets are impounded and individual depositor?s assets are impounded. The bankers only give sovereign citizens three choices: submit and starve, rebel or leave.
If banking were passed to public banks owned by the people, be they state or federal, what would happen? First, one should note that the state of North Dakota has a public bank that has been operating successfully since 1919. This is how public banking works
* Borrowing from public banks should require no interest on approved public services or projects since they are non profit. Approval would be required.
* Money is for growth, not speculation. The banks are self sustaining using a pool of money such as used in the Marshall Plan in Europe.
* The public legislature could use the money for growth and infrastructure building not speculation. This allows the removal of private banks high salaries and multi-million dollar bonuses; but incentives could still be provided to get good people.
* Public banking would not honor current FED debt. The FED is a private banking cartel and incurred these obligations without approval of the Treasury or the Congress. Frankly, I believe that the US should disband the FED and let it fail. These derivatives are private not public debt. Thus, Federal and certain State debt could be reduced by nullifying them. Consider what could happen if this solution were followed:
o Public money could be used to rebuild
* The manufacturing base;
* The infrastructure of roads, rail and waterways.
o Social programs could be funded interest free.
o Energy sources could be funded.
o Major programs such as NAWAPA (North American Water Project) could be funded.
o Millions of people could be put back to work.
o Private savings, checking, pensions could be secure.
o Surpluses could replace deficits if people were working productively again.
The time has come to seriously look at alternatives. This is but one but if adopted the investment environment would be positively improved. Private banking is not excluded but included in major projects.