Our new economic era is characterized by the supremacy of financial capital which vacuums up the productive wealth of the nation, and then uses the nation's wealth as an insurance policy to pay for its inevitable losses.
The Fed claims that quantitative easing has helped create or save almost 2,000,000 jobs since 2008, and while that may be true, the people could probably find a much better way to spend $40 billion a month and create and save far more jobs.
One pathway to genuine reform is "public banking": the establishment of banks which are owned and operated by the government, and which serve people and small businesses directly. Here's why public banking should be included in the agenda for deep and genuine financial reform.
Many homeowners were strained by mortgages that were underwater prior to the storm, and their properties have now depreciated to the point of having no market value at all. They have no choice but to try to rebuild, but how can they take on more debt?
We have forgotten our roots, when the American colonists thrived on a system of money created by the people themselves, debt-free and interest-free. The continued dominance of the Wall Street money machine depends on that collective amnesia.
I would encourage the Occupy movement to adopt a new plank in the platform -- a new bank. De-bank and re-bank! Let's find the "radical" economists and entrepreneurs who can help make the success story of the state bank available to us all.
The time has come for an intelligent, independently-governed, public infrastructure bank, ideally partnering with real banks that see their public purpose as a profession, focused on productive lending in the real economy.
The Fed's second round of "quantitative easing" involved $600 billion for the purchase of long-term government bonds. But the government never actually got the money; it went straight into the reserve accounts of foreign banks.
California is the eighth largest economy in the world, and it has a debt burden to match. As large as California's liabilities are, they are exceeded by its assets. That makes Assembly Bill 750 particularly significant.
The budget woes of Wisconsin and other states were not caused by overspending on employee benefits. The "cure" is to get credit flowing again in the local economy, and this can be done by using state assets to capitalize state-owned banks.
The Bank of North Dakota has garnered attention for its continued profitability. Momentum is building for a sane kind of banking system that works for the people and state instead of the bottom line of banks and shareholders.
Wall Street banks have been saved from bankruptcy by governments that are now going bankrupt themselves; but the banks are not returning the favor. Wall Street needs to be made to pay its fair share, but how?