The state of Oregon should have its own bank so taxpayer dollars could help fund local businesses instead of boosting the profits of big multinational banks, says Bill Bradbury, Democratic candidate for governor and former secretary of state.
Bradbury announced his proposal today in Portland as part of his plan to find jobs for more Oregonians. The state bank, modeled on one in North Dakota, would form the cornerstone of his jobs proposal, he said.
“It’s time to declare economic sovereignty from the multinational banks,” Bradbury said. ~[Source]
The Bank of North Dakota has been operating since 1919 without federal bailouts of any kind, completely funded by its own resources, non-securitized, and by charter obligated to loan to agrarian interests instate. Oh, and North Dakota currently has a record surplus and the lowest unemployment in the country. It’s the megabanks that needed TARP and all the rest. The state bank of ND is self-insured (they don’t WANT FDIC insurance – why pay the fees?) and has returned revenue (not COST revenue) to the state since inception 91 YEARS ago! A state bank of Oregon could do the same thing. Bradbury is on target. Read Ellen Brown’s articles or her book “Web of Debt” to understand this.
The way it works is the state bank collects all the state’s revenues, then it makes loans, either directly or through subservient banks – private or public – using the traditional 10:1 loan to asset ratio. The 10:1 ratio has been shown historically to be safe if the bank keeps those loans on its books, as the State Bank of North Dakota does, and is conservative about who it loans to: no subprime, no-doc, liar loans etc. Yes to basic mortgages (probably at lower interest than the private banks charge), yes to school loans, car loans. Definitely no to securitization, which encourages fee-generation from selling loans and selling them again as structured packages to indirectly participating – and often, ignorant – financial institutions, e.g. sovereign funds, hedge funds etc.
Ellen Brown has written in support of this here. ~ [Source]