Ellen Brown Now Running for California Treasurer
|January 17, 2014||Posted by Staff under Editorials|
This 2014 excerpt of Web of Debt, Jan 16, is by Ellen Brown.
More than eight million Californians struggle to meet their daily needs. One in four children lives in poverty. Income inequality is higher in the nation’s most populous state than in almost any other.
Governor Jerry Brown acknowledges that California faces a “wall of debt” amounting to $28 billion. Some analysts put it much higher than that.
Welfare payments, health care for the poor, and benefits for the elderly and disabled have been slashed. State workers have been downsized. School districts in need of cash have been reduced to borrowing through “capital appreciation bonds” bearing 300% interest. In one notorious case, the Santa Ana school district actually borrowed at 1,000% interest.
When tallied up at every stage of production, interest has been calculated to claim one-third of everything we buy.
California’s revenues are currently parked in those very largest of corporations, Wall Street banks. These out-of-state banks use our giant asset pool for their own speculative purposes, and the funds are at risk of confiscation in the event of a “bail-in.”
On the other hand, the state Bank of North Dakots is a major money-maker for the state, returning a sizable dividend annually to the treasury. Every year since the 2008 banking crisis, it has reported a return on investment of between 17 percent and 26 percent. The BND also provides what is essentially interest-free credit for state projects, since the state owns the bank and gets the interest back. The BND partners with local banks rather than competing with them, strengthening their capital and deposit bases and allowing them to keep loans on their books rather than having to sell them off to investors.
In the fall of 2011, a bill for a feasibility study for a state-owned bank passed both houses of the California legislature. But it died when Jerry Brown vetoed it.
I am therefore running for California State Treasurer on a state bank platform, along with Laura Wells, who is running for Controller.
We are running on the endorsement of the Green Party – along with Luis Rodriguez for governor and David Curtis for secretary of state.
Ed. Notes: Out of the two — a state bank vs. Wall Street — the former surely seems preferable. However, there are other options. Why not empower the state Treasury to perform some banking functions? You could open up an account there, if you like. Also, why not stop letting the central bank be the only one to create new money? Stop them, or make them compete with credit unions, or let local currency clubs be the ones to create new money, since they’re the ones in position to know how much is needed.
And while reforming banking and credit, society should also do something about land speculation. That’s what tanks economies, letting speculators inflate the price of locations, which is what happened in California after Prop 13. The way to fix that is to drop taxation and instead recover the annual rental value of locations by utilizing fees, dues, leases, etc. The raised revenue could fund any truly desired government or fund a dividend to residents — obviating welfare for the needy and greedy both — or fund a mix of both services and monthly share checks.
It’s called geonomics and it works.