so.... there is at least one banking system in the USA that appears to
work well, as WIR in Switzerland also appears to.......
would/could anyone here explain/discuss/explore why these are
exceptions to the norm?
Jan
Message: 22
Date: Sun, 8 Mar 2009 09:10:32 -0800
From: Jim Devine <[email protected]>
Subject: Re: [Pen-l] How Cash Starved States can Create their Own
Credit
To: Progressive Economics <[email protected]>
Message-ID:
<[email protected]>
Content-Type: text/plain; charset=ISO-8859-1
who runs the governor, the attorney general, and the farm dept head?
when it refers to no-interest loans (or rather "returning the interest
to the public purse"), the word "could" appears earlier in the
sentence.
On Sat, Mar 7, 2009 at 10:49 PM, Charles Brown <[email protected]>
wrote:
Jim,
Take a second look. I think
this author may have a little
more going on than first meets
the eye, and I'd like to
hear what you have to say.
It says the state bank
is run by the gov, the attorney
general and the farm dept head.
It's not saying there are productive
assets only in ND. i think it
says no interest loans ??
Take a second look , s'il vous plait
Charles
* From: Jim Devine
"North Dakota is a sparsely populated state of less than 700,000,
known for cold weather, isolated farmers and a hit movie - Fargo.
Yet, for some reason it defies the real estate cliche of location,
location, location. Since 2000, the state's GNP has grown 56%,
personal income has grown 43%, and wages have grown 34%. This year
the state has a budget surplus of $1.2 billion!"<
Wait, the whole country grew a lot, too, during the bubble years
(while "Fargo" mostly takes place in Minnesota). It's also a bad sign
that personal incomes and wages lagged so much behind gross state
product.
What does the State of North Dakota have that other states don't? The
answer seems to be: its own bank. In fact, North Dakota has the only
state-owned bank in the nation.... <
That's a good thing, if it avoided getting involved in the city
slickers' Standard & Ponzi scheme. But who runs that bank? business,
I'd bet.
Some experts insist that we must tighten our belts and start saving
again, in order to rebuild the "capital" necessary for functioning
markets; but our markets actually functioned quite well so long as
the credit system was working. We have the same real assets (raw
materials, oil, technical knowledge, productive capacity, labor
force, et cetera) that we had before the crisis began. Our workers
and factories are sitting idle because the private credit system has
failed.<
Right, it's like I said in my long missive to David, there are a lot
of real productive assets that can be used. It's not just in ND.
A system of public credit could put them back to work again. The
notion that "money" is something that has to be "saved" before it can
be "borrowed" misconstrues the nature of money and credit. Credit is
merely a legal agreement, a "monetization" of future proceeds, a
promise to pay later from the fruits of the advance. Banks have
created credit on their books for hundreds of years, and this system
would have worked quite well had it not been for the enormous tribute
siphoned off to private coffers in the form of interest. A public
banking system could overcome that problem by returning the interest
to the public purse. This is the sort of banking system that was
pioneered in the colony of Pennsylvania, where it worked brilliantly
well. <
this is wishful thinking, isn't it? it's not about to be instituted,
is it? The ND state bank isn't going to be doing monetary policy, I'd
bet.
(you betcha!)
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