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Alaska should establish its own public bank

Posted: December 13, 2013 - 9:10am

December 23, 2013 will mark the 100th anniversary of our Federal Reserve Bank (Central Bank). The name implies a public bank owned and operated by the federal government. That assumption is wrong. It is a private banking system that operates for profits of the private banks who are members. They have dual mandates from government. “Maximum employment and stable prices.” With the Central Banks’ promise came a great privilege. Money creation through credit. Banks do not lend deposits. They create credit from assets/deposits to expand the money supply. There is no direction given to the banks on how the oodles of money created should be used.

The private cabal of banks too big to fail/jail have a primary objective, profit. It is what crony capitalism is all about. Make the most money possible. Money making fiascoes through gambling investments and economic bubble creation. Janet Yellen (expected new chair of the Federal Reserve Bank) gave a speech at UC Berkeley in 2009. She was asked about money expansion causing speculative bubbles and should the Central Bank keep such financial bubbles from developing. Yellen expressed the difficulty in determining whether a price increase of an asset is related to value or inflated value. I believe private mega-Banks do not care. Money is to be made until the bubble bursts.

There is a better way. Money creation directed to increasing the productivity of the nation rather than money making Ponzi schemes. Small commercial banks understand and want to help small-medium businesses. But, the behemoth banks control 50 percent of America’s deposits. Productivity ignored, let’s make money. Our federal government has lost its way. The Federal Reserve Bank with the madness of Congress continues to teeter on the brink of economic disaster.

Alaska has a choice. Establish a public Bank of Alaska. It would work like a central bank with one major exception. Use the full weight of money creation towards improving Alaska’s productivity. Supporting small commercial banks to help small and medium size local businesses for advancing all Alaskans’ prosperity. Perhaps even support a large part of the funding for an all Alaska Gasline.

Consider the compounded interest Alaska will pay for our share of the Gasline. Rather than borrowing money from Wall Street banks (with the credit they create with our deposits) let’s establish a public bank. Withdraw our deposits from Wall Street and open our own public Bank of Alaska. Keep the money and create credit to build infrastructure. Alaska would be paying interest to the Bank of Alaska, which in turn would pay profits back to the great State of Alaska. Profits to Alaska instead of bigwig bankers on Wall Street. Not a new idea. The public Bank of North Dakota has been doing it since 1919.

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RaySouthwell
1108
Points
RaySouthwell 12/13/13 - 10:19 am
0
0
Common ground

Most will ignore this letter. I appeal to those who constantly complain about the problems. We will never unite on the peripheral problems. But I believe we can on the issue of compounded interest. Why should Alaska pay interest to private banks when we could pay it to ourselves through a public Bank of Alaska. What would be the savings? I don't know. How many small businesses, that increase the productivity of Alaska, lack the financial resources to expand? I don't know.

I do know this, the folks in D.C. (both parties) have sold our future to the highest bidder. A public Bank of Alaska would take money creation away from private banks and place it under the control of the people. That is what our Constitution of the USA called for. Congress passed the responsibility to private banks back in 1913.

Video of the history of the Bank of North Dakota
http://www.youtube.com/watch?v=L75oinBuY1g

Seafarer
1147
Points
Seafarer 12/13/13 - 11:38 am
0
0
I'm With Ray

I am not schooled enough to know much about economics, but what Ray says makes sense to me. I will deposit my money into the Bank of Alaska instead of the giant Wells Fargo.

But, don't forget that NBA (bought by Wells Fargo) was supposedly an Alaskan bank. I was a kid, but I remember going to rich folk's houses with my parents and hearing the discussions, and hearing my parents say it was all a fraud.

RaySouthwell
1108
Points
RaySouthwell 12/13/13 - 12:30 pm
0
0
All banks in Alaska are private

Thank You Seafarer. All Banks in the nation are private but one. Bank of North Dakota. (BND) Because a bank has Alaska in the name does not make it a public bank. If you are truly interested check out the attached site-Public Banking Institute. http://publicbankinginstitute.org/

Or watch the video I posted above with BND's history.

Raoulduke
3084
Points
Raoulduke 12/19/13 - 03:40 am
0
0
Public

R.S.-I like your thoughts on public banks.I have one question.How would you progress to get the ball rolling.Since.All of OUR representatives are on the the take with oil,fish,and mining monies? I like the idea,but I do not foresee any way of getting this idea practically applied .When confronting imbedded CORRUPTION.Explain just how.You would progress.

RaySouthwell
1108
Points
RaySouthwell 12/19/13 - 07:37 am
0
0
People

Unlike our federal politicians, local politicians fear the people of Alaska. It we talked and discussed the issue among friends the politicians will follow. I will be sending a letter to all elected officials at the State level and the Borough. I believe many are looking for answers to the feds failed economic plan. My next letter to the editor will encourage people to understand public banking and contact their legislators. I believe most elected officials start out with the best interest of Alaska at heart. Once elected they realize they are powerless to stand against big money interests. The story sounds the same when North Dakota established their public bank in 1919. We just need to show State politicians how public banking will be the start of real change.

Here is a video that explains Bank of North Dakota's public bank. http://www.youtube.com/watch?v=L75oinBuY1g

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