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Friday, March 18, 2011

State-Owned Banks Can Challenge Fed Monetary Policy

 Banking Secret Exposed

January 9, 2011 1:08
By Mark Anderson
Deceptive corporate media sources often confuse small “upticks” in the economy with major rebounds. As homelessness and joblessness spread, even minor recovery signs, graded “on a curve,” might seem like prosperity.

Still, a large and diverse nation like America—populated by resilient people who are learning to cut up credit cards, protest the debt system and save more money—has a number of places to seek refuge.

A Bureau of Economic Analysis (BEA) report lists 10 states and one district that offer calmer economic waters where one can set sail toward a better life. Those states are, starting with the best: Oklahoma, Wyoming, North Dakota, Alaska, Louisiana, South Dakota, the District of Columbia, West Virginia, Arkansas, Nebraska and Virginia.

Places like Michigan, Indiana and Illinois, North Carolina, Tennessee and Florida appear close to rock-bottom, while Texas, Wisconsin, Kentucky, Alabama and Maine are in the middle, adds the BEA, a division of the U.S. Commerce Department.

The fastest-growing states in America in 2009, according to a BEA chart, include those in the Great Plains and just to the south of the Plains, where natural resources have fueled local growth. AMERICAN FREE PRESS has maintained that natural resources represent real wealth, and money is simply a means to quantify and transfer wealth. Mining and agriculture are among the natural-resource activities cited by the BEA as a source of this growth.

“States like Oklahoma, which was particularly helped by growth in mining, and Louisiana and South Dakota have seen growth rates that would put much of the rest of the nation to shame,” online news site Huffington Post observed. However, states that relied on manufacturing durable goods and construction experienced major drops in local gross domestic  product, which is mainly a consequence of the North American Free Trade Agreement and other global schemes that have closed U.S. factories or sent formerly good-paying jobs overseas.

Looking deeper, author and Federal Reserve critic Ellen Brown points out that North Dakota scores high because, “Only one U.S. state actually owns its own bank—North Dakota. As of last spring [2009], North Dakota was also the only . . . state sporting a budget surplus. Amid widespread economic wreckage, it has the nation’s lowest unemployment rate.”

Tackling what most media avoid, Brown summarized that North Dakota’s bank “is a major profit generator for the state, returning a 26 percent dividend in 2008.”

The bank “makes the assets of the state the assets of the bank.” The law requires all state revenues to be deposited in the state’s bank. Municipal deposits also are accepted. Illinois and New Jersey, featured in recent national newscasts over imploding budgets and crumbling municipalities, may want to seriously study North Dakota’s innovation.
 Full credit is given to American Free Press - 645 Pennsylvania Avenue SE, Suite 100 Washington, D.C. 20003

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Read more in Banksters

Proposal to Sen. Julie Lassa 
to Study "North Dakota Style" State Bank

For all you policy "wonks" out there...
it could look something like this in Wisconsin:
HJ62: Banks; joint subcommittee
 to study whether to establish
 those to be operated by State.

Offered January 13, 2010
Prefiled January 11, 2010
Establishing a joint subcommittee to study 
whether to establish a bank operated 
by the Commonwealth. Report.
Patron-- Marshall, R.G.
Committee Referral Pending

WHEREAS, the Commonwealth does not
 currently engage in the business of banking
 or own, control, or operate a bank; and
WHEREAS, the state of North Dakota 
currently engages in the business of 
banking, owns, controls, and operates
 a bank known as the Bank of 
North Dakota; and
WHEREAS, the Bank of North Dakota
 was established pursuant to 
North Dakota Century Code 6-09-01 
for the purpose of encouraging
 and promoting 
agriculture, commerce, and industry; 

WHEREAS, the Bank of North Dakota
 is not a member of the 
Federal Deposit Insurance Corporation
 but pursuant to 
North Dakota Century Code 6-09-10,

all deposits in the Bank of North Dakota

 are guaranteed by the state; and
WHEREAS, the deposit base of the 
Bank of North Dakota is unique in 
that its primary deposit base is the 
State of North Dakota and all state 
funds and funds of state institutions 
are deposited with the Bank of North Dakota, 
as required by law; and
WHEREAS, the Bank of North Dakota
 accepts other deposits from any source, 
including private citizens, businesses, 
and the U.S. government; and
WHEREAS, the Bank of North Dakota
 is overseen by the North Dakota 
Industrial Commission and advised
 by a seven-member Advisory Board
 appointed by the Governor that reviews
 the bank's operations and 
makes recommendations to the 
Industrial Commission relating to 
the bank's management, 
services, policies and procedures; and
WHEREAS, the Bank of North Dakota
 administers several lending programs
 that promote agriculture, commerce, 
and industry as well as providing 
government guaranteed loans
 for lenders and providing 
community, rural, and 
regional development loan funds;

WHEREAS, the Commonwealth
 is expected to have a budget shortfall
 of between $ 1.8 billion and $ 3.6 billion
 in 2010 and North Dakota is expected
 to have an $ 800 million budget surplus
 by the end of 2010; and
WHREAS, the Commonwealth would
 benefit from loaning funds to develop
 agriculture, commerce and industry
 in lieu of granting tax revenues to 
newly established businesses; and
WHEREAS, by opening accounts
 in a bank owned, controlled, 
and operated by the Commonwealth, Virginians
 would be able to invest in the growth
 of agriculture, commerce and industry
 in the Commonwealth; and
WHEREAS, Virginians with 
accounts in a bank owned, controlled, 
and operated by the Commonwealth 
would benefit from a return on 
their investment in the form of 
loan interest and other revenues 
earned by the bank’s investments in
 agriculture, commerce and industry 
in the Commonwealth; and
WHEREAS, the purpose 
of a bank owned, controlled, and 
operated by the Commonwealth 
would be to invest in agriculture, 
commerce, and industry within 
the Commonwealth; and
WHEREAS, a need exists to determine
 if the Commonwealth would benefit 
from the creation and operation of a 
similar financial institution; now, 
therefore, be it
RESOLVED by the House of Delegates, 
the Senate concurring, That a joint 
subcommittee be established to 
study whether to establish a 
bank operated by the 
Commonwealth. In conducting its study, 
the joint subcommittee shall consider

recommendations for legislation to 

establish a state owned, controlled, 

and operated bank.

The joint subcommittee shall
 consist of eight legislative members. 
Members shall be appointed as follows: 
five members of the House of Delegates
 to be appointed by the
 Speaker of the House of Delegates
 in accordance with the principles of 
proportional representation contained
 in the Rules of the House of Delegates
 and three members of the Senate
 to be appointed by the
 Senate Committee on Rules. 
The joint subcommittee shall 
elect a chairman and vice-chairman
 from among its membership.
Administrative staff support
 shall be provided by 
the Office of the Clerk of the House of Delegates. 
Legal, research, policy analysis, and 
other services as requested by the 
joint subcommittee shall be provided 
by the Division of Legislative Services. 
Technical assistance shall be provided 

by the Bureau of Financial Institutions 

of the State Corporation Commission. 

All agencies of the Commonwealth 

shall provide assistance to the joint 

subcommittee for this study, upon request.
The joint subcommittee shall be 
limited to four meetings for the 
2010 interim, and the direct 
costs of this study shall not exceed $8,000
 without approval as set out in this resolution. 
Approval for unbudgeted 
nonmember-related expenses
 shall require the written authorization
 of the chairman of the joint subcommittee
 and the respective Clerk. If a companion
 joint resolution of the other chamber
 is agreed to, written authorization of 
both Clerks shall be required.
No recommendation of the 
joint subcommittee shall be 
adopted if a majority of the 
House members or a majority 
of the Senate members appointed 
to the joint subcommittee (i) vote 
against the recommendation 
and (ii) vote for the 
recommendation to fail 
notwithstanding the majority vote
 of the joint subcommittee.
The joint subcommittee shall
 complete its meetings by 
November 30, 2010, and

the chairman shall submit

 to the Division of Legislative

 Automated Systems an 

executive summary of its 

findings and recommendations

 no later than the first day of the 2011

 Regular Session of the General Assembly. 

The executive summary shall 

state whether the 

joint subcommittee intends to

 submit to the General Assembly,

 and the Governor a report of its 
findings and recommendations for publication

 as a House or Senate document. 

The executive summary and the

 report shall be submitted as 

provided in the procedures

 of the Division of 

Legislative Automated Systems 

for the processing of legislative

 documents and reports and shall

 be posted on the General Assembly's website.
Implementation of this 
resolution is subject to 
subsequent approval 
and certification
 by the Joint Rules Committee. 
The Committee may approve
 or disapprove expenditures
 for this study, extend or delay
 the period for the conduct 
of the study, or authorize 
additional meetings during the 2010 interim.

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