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U.S. States Consider Starting Their Own Banks

ATLANTA, Georgia, Apr 30, 2010 (IPS) - At least eight U.S. states are considering proposals to start state-run banks in the wake of an economic crisis where many private banks ceased or greatly decreased their lending, literally shrinking the money pool available in state economies.

Economist Ellen Brown, author of "Web of Debt", has been writing commentaries on various websites and runs a Google Group that has been pushing the idea of state-run banks for a couple of years, efforts which she says have made a lot of state legislators aware that a state-run bank was even a possibility.

North Dakota is the only one out of the 50 U.S. states that is still operating with a fiscal surplus, and some economists argue it is in part due to the state-owned Bank of North Dakota - the only bank of its kind in the U.S. - which has been able to pump money into its own economy by making loans to farmers, small businesses and families.

Numerous states are beginning to consider the idea of starting their own bank, since the issuance of credit is one of the main ways that money enters the economy.

http://www.ipsnews.net/news.asp?idnews=51277

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Not a bad idea, and since

Not a bad idea, and since they're prohibited from using anything but gold or silver, it could work.

I am out of touch with most Americans precisely because I am not out of touch with reality.

I'm from ND, and I'm not so

I'm from ND, and I'm not so certain that it was our bank that saved us. I believe that the bankers here just simply did not engage in as much risky loans, in combination with the fact that we produce.

I would, however, enjoy fighting for a ND currency through our bank ...I need to start going to our CFL meetings...

Also, correct me if I am wrong but I believe Montana is also in a surplus?

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Riverboat Captains Know A Thing or Two About Gambling

Did my share of piloting Riverboats up and down the Great Mississippi. Seen my share of drunk'n riverboat gamblers.

Wrote for and against newspapers.

Had my trouble figuring out what to do with bankers and politicians. Thought maybe I'd see about what their finding in California.

Went to the mines of California. Going there, ya call 'em gold fields. Coming home, ya call 'em diggin's, nothing but diggin's. Somebody else get's the gold. Lot of hard work. But, 'em jumping frogs, now that was worth all the money I lost!

Don't recall much trouble worth reporting in North Dakota. You see, reporting news is a funny business. If nothing goes wrong, well, you just have to make it up, or your papers don't sell, and you must be moving on....

TenBobNote is half correct or more, North Dakota Bank owned by North Dakota, did little gambling. Made few risky loans. They deposited tax revenue directly; then loaned out on government obligations. There is a big advantage. The Fractional Reserve system that, believe it or not, allows banks to loan out 10 x their deposits, means they can loan out at interest 10 x more than their tax revenues and get interest too.

So, both positive hings favored North Dakota: 1. Zero interest necessary to pay private banks; low risk loss.

See, "Money as Debt" by Ellen Brown. She explains in her videos, books and speeches the value of states owning their own bank.

Ron Paul's stance requesting: End-the-Fed, sound money and competing currencies is much better.

Sey, TenBob,

Any big strong frogs up there?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Numerous states are beginning

Numerous states are beginning to consider the idea of starting their own bank, since the issuance of credit is one of the main ways that money enters the economy.

It's the ONLY way that money enters the economy in this system.

not exclusive

It's not the ONLY way.

The silver eagles and gold eagles from the US Mint are not loaned into existence. They have no debt attached.

Circulating coins are not loaned into existence. Circulating coins are not 'notes' like 'federal reserve notes', though they are fiat.

We could start to break free right now if people would carry silver eagles in their pocket and attempt to use them for transactions. I do.

Correct about the coins. But

Correct about the coins. But I've heard other things saying they have debt associated with them. It's hard to learn the truth about a 25 cent coin.

coins have debt?

Thanks for the response.

Since I am unaware of any debt attached to us mint coins, I am interested in reading about it. Do you have any links?

Silver eagles are legal tender with face value one dollar. Real value - ounce of silver, not fiat. No debt attached.
Sears and walmart won't give full value, but I have had success using them for services and products from small stores. Other than overcoming people's inertia via education, we could be using these coins every day. What are your thoughts on using silver eagles?

While the state are

While the state are prohibited from coining their own money, the federal government has failed to "coin money and regulate its value..". As in the case of failing to protect us from invasion, the State of Arizona was forced to do what Washington has refused to do,

The Committees of Safety have conceived a plan to have the individual states create depositories of precious metal. These depositories could issue redeemable certificates to be used as money after our politicians succeed in destroying the dollar.

The Committees of Safety also want to have the individual states create militia under the governor of the state to serve in time of national emergency. We have seen how FEMA handles emergencies in the case of Hurricane Katrina. We don't want to see a replay of that!

It's not banks that we need - it's honest money! Since the states are unable to coin money, they can issue redeemable certificates which will have real value.

Why create PM depositories to issue certificates?

THAT'S HOW WE GOT IN THIS DAMNED MESS IN THE FIRST PLACE!!

Why not just pass a legal tender law limiting tender to gold and silver coin as the Constitution requires?

The market will work out the kinks. It won't take anyone long to figure out how to price and value goods and services when using gold and silver.

The coins are already minted, they just don't circulate. Additionally, the increased demand will require the US Mint to increase production to meet demand as required by law.

Bzzzt....bad idea.

"This is really a market-based approach to create jobs,"

Ha...what part of this idea is based in markets?
Creating money is inflationary no matter if the feds, the states, or your neighbor does it.

Interesting Idea

It would have to be regulated heavily, but I will take 50 state banks instead of a few regulated by the Fed.

They then use the profits to cut taxes.

Of course it sounds good in theory, but we all know that some state banks would be ran like their govts and end up being a bankrupt, destructive entity that threatens to take down the whole state.

Most states are run

by the same scammers that run the Federal government.
Not sure if this is the answer maybe, we need to trade in eggs then I could open my own eggcellent bank. lol

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And I will have my

And I will have my veggiebank! Plluuutttthhhhh :)

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