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Related: About this forumReclaim Our Economy from Wall Street Public Banking: Funding the New Economy
Published on Jul 4, 2014
Birgitta Jonsdottir, Matt Taibbi, Ellen Brown and Gar Alperovitz have a conversation about Reclaiming Our Economy from Wall Street with Public Banking.
canoeist52
(2,282 posts)Ellen brown explains public banking
How Iceland handled their banking crisis;
mother earth
(6,002 posts)mother earth
(6,002 posts)banking, and absolutely love Matt Taibbi.
K & R, good find!
Enthusiast
(50,983 posts)Esra Star
(2,166 posts)The smoke we see is just a reflection of the other smoke, and only god knows where the smoke started. It makes the "big bang" and multiverses seem understandable by comparison.
AdHocSolver
(2,561 posts)Last edited Mon Jul 7, 2014, 05:30 PM - Edit history (1)
A person deposits their money in a bank into a savings account, money market, or CD. For the use of the depositor's money, the bank pays the depositor about .1 percent (.001 times the principal) for the use of that money, a rate set by the Federal Reserve. In effect, the depositor loans the bank their money for .1 percent.
The bank then loans that money to their customers. For example, John Doe runs credit card balances on which he pays 14 percent interest. The bank collects 14 percent on its loan to its credit card customer and pays its depositor .1 percent for the use of that money.
This represents a spread of ( .14 / .001 ) = 140 times or 14,000 percent. The person who keeps money in a bank account isn't even keeping up with inflation. Keeping money in a bank account is a losing proposition.
The Federal Reserve sets the interest rates to favor the banks and Wall Street. The Fed does not control the banking system in the public interest, but uses its powers to ensure the transfer of middle class assets (what is left of middle class assets) to the banks and Wall street.
The only way that "public" banking can work is if it is set up independent of the Federal Reserve.
BelgianMadCow
(5,379 posts)right now
Ideas whose time has come...