The animated video we produced last year has been widely applauded and shared. However, the narration by a child’s voice turned out to be perhaps a step too far. We’ve made a new recording with a wonderful confidence-inspiring, conversational voice that we hope will encourage many more of you to share. Check it out and thank you for the feedback!
Connecticut legislators have moved forward with a flurry of legislation aimed at creating a public State Bank of Connecticut. Each co-chair of the banking committee has introduced separate legislation: Rep. Ezequiel Santiago’s version proposes a state-owned bank for community development. Sen. Alex Bergstein’s version proposes the bank be for transportation infrastructure funds and she’s introduced another bill to authorize a study on an expanded regional public bank to include New York, New Jersey, Massachusetts and Rhode Island.
This significant advance follows a Public Banking Institute-led informational meeting that included several CT legislators.
Amid headline-grabbing scandals in the Windy City, public banking gets a high-profile article in Chicago Magazine, and a full exam by the watchdog group Better Government Association. Edward McClelland quips in Chicago: “Amara Enyia, who’s running for mayor, and Ameya Pawar, who’s running for city treasurer, want to make Chicago more like … North Dakota.
“One of America’s smallest, most conservative states may seem like a strange model for one of its biggest, most progressive cities. A hundred years ago, though, North Dakota was a pretty radical place. Its hard-pressed wheat farmers got tired of paying 12 percent interest to greedy bankers here in Chicago, so they voted to charter a state-run bank, which offered low-interest loans and sold foreclosed farms back to families who had lost them.”
The Chicago Mag profile describes the articulate, grounded ideas the two candidates are bringing forward. ...Read more
In her latest article in Truthdig, PBI Chair Ellen Brown delves further into how the US can fund a Green New Deal through a national public infrastructure and development bank. All we need to do is look to how Germany did it. Establishing such a bank should be a “no-brainer,” she writes:
“The real question is why we don’t already have one, as do China, Germany and other countries that are running circles around us in infrastructure development. … Germany has a public sector development bank called KfW (Kreditanstalt für Wiederaufbau or “Reconstruction Credit Institute”), which is even larger than the World Bank. Along with Germany’s nonprofit Sparkassen banks, KfW has largely funded the country’s green energy revolution.”
Banking on New Mexico advocates have returned the group’s focus to its original vision of a statewide public bank and have joined forces with Albuquerque’s Public Bank for Central New Mexico to form the Alliance for Local Economic Prosperity.
The mission of the new group is, “to spearhead a statewide educational campaign to help people understand that keeping New Mexico money in New Mexico can grow financial resources that are safe, support local economic and educational systems, invest in job opportunities and human development, and diversify our economy.”Read more
As Representative Alexandria Ocasio-Cortez takes a seat on the House Financial Services Committee, her tweet saying she wants to get to work on public banking was heard round the world. “I’m looking forward to digging into the student loan crisis, examining for-profit prisons/ICE detention, and exploring the development of public & postal banking,” Ocasio-Cortez tweeted. The French press agency AFP immediately caught on, writing “‘Public banking’ are two words that send shivers down the spine of Wall Street.”
The French know this because Europe actually has public banks and and recognizes the efficiency of that model.
The House Financial Services Committee has long been a major source of campaign contributions from Wall Street for both Democratic and Republican lawmakers, so the response of the financial services industry and Party leadership to this development may be swift.
Meanwhile, the resulting media attention from AOC’s current limelight presents a great opportunity to substantially advance the public’s understanding of public banking and to gain the support of advocates, allied organizations, and elected officials.Read more
North Dakota is facing important budget concerns due to the continued slide in oil prices. Early this month, the North Dakota Legislature lowered the amount of revenue the state can expect to collect from oil taxes by $600 million for the next two year budget cycle. Oil is a major contributor to the state’s wealth and the significant drop in energy tax revenue (despite record levels of oil production) would be expected to have significant effects on state spending. North Dakota, however, has a state bank. Eyeing the trend, they have built into their budget the transfer of a $140 million dividend from the Bank of North Dakota’s record profits (p24 of link). These dividends are funds the state can tap in lieu of a rainy day fund -- one of the major benefits of having a state-owned public bank. They will enable the state to buffer budget woes brought about by volatile swings in commodity prices and boom and bust cycles.
During the current arbitration talks at Canada Post, which have followed last year’s rotating strikes, the Canadian Union of Postal Workers (CUPW) has pitched a proposal that Canada Post create a Postal Bank. Another demand is a proposal to convert their vehicle fleet from gas to electric powered. By including these key public benefits in their agreement negotiations, the Union breaks new ground as advocates.
Chris Arsenault reports for the CBC:
“The proposed postal bank is aimed at rural residents, including First Nations, who often don't have easy access to a bank branch, said John Anderson, researcher with the Canadian Centre for Policy Alternatives. … It would also benefit low-income Canadians, including pensioners and the working poor who often depend on payday lenders for loans, cheque cashing and other financial services. …
“‘The federal government — through its ownership of Canada Post — is the only body that could bring modern financial services to every community in Canada,’ Anderson said.”
Professor Tim Canova discusses the Fed with Ellen Brown and Walt McRee on the It's Our Money podcast. Meanwhile, Canova's campaign continues for hearings and full investigation of the “unbelievable” election results that gave the Broward County, FL House seat to Democrat Party fixer Debbie Wasserman-Schultz. Walt describes the show:
The “Reserved” Federal Reserve
By “reserved” we mean “reserved for the banking giants.” Our guest today is Professor Tim Canova, a noted expert on the Federal Reserve and a veteran survivor of the federal election system that saw his two campaigns for Congress crushed by Democratic Party power-players affiliated with Debbie Wasserman-Schultz, a top party official. Whether it's election outcomes or banking policy, the game is rigged from the highest points of influence and control. Tim and Ellen discuss the details that provide a bracing look at two of our most important public institutions.
In July 2018, Washington State’s Office of Financial Management asked the Evans School of Public Policy and Governance at the University of Washington to complete an evaluation on the benefits and risks of establishing and operating a state-chartered, public cooperative bank. This evaluation would inform the creation of a business plan for such a bank. The interim report delivered mid-December concluded that: “Improvements can be achieved by creating a state-chartered public cooperative bank.”
The report also clarified that creation of such a bank is feasible under the state’s constitution, although it would require an enabling statute and the amendment of others. The final business plan report is due June 30, 2019.