While American public banking advocates are raising eyebrows at Janet Yellen's admission that, in certain circumstances, the Federal Reserve can implement "helicopter money" (and the mainstream media's eyes become like saucers), the European Central Bank, shaken like the rest of Europe at the prospects of losing a member, is under pressure to give money out to working people and community-level enterprise rather than to the elites.Read more
The mainstream media says Puerto Rico is in debt trouble because the island's government irresponsibly issued debt that it couldn't pay. As is evidenced through an understanding of the history of Puerto Rico, that's an absurdly fragmentary and incomplete explanation.Read more
A Baltimore mayoral candidate may have the most on-point application of public banking we've seen in the whole economic democracy movement.Read more
Event: Big Banks and the Changing Impact on Business and the Safety of our Money: Is Public Banking an Alternative?
This Saturday, June 18, two members of the Public Banking Institute board, Ellen Brown and Ray Bishop, will be part of a discussion on public banking sponsored by the California Democratic Party. Obviously, PBI is not affiliated with any political party, but the public is invited to the event, and details are below.Read more
The following OpEd was written on behalf of Banking on New Mexico in response to arguments in Santa Fe against the creation of a public bank there.
Usually, a household wishing to own a house must borrow the funds from a bank. The household pledges its future earning capability to pay off a mortgage during the home owner’s lifetime. Likewise, the City needs to borrow for public projects like Roadways and Streets, Utilities, and the Airport. And, the City pledges its earnings from taxes to pay off the loans over its lifetime. Of course, a city’s lifetime is indefinite, so it borrows continuously forever.Read more
There are a number of reasons to doubt the maxim that capitalism as currently practiced, particularly in its finance capital formulation, fulfils its self-proclaimed mission of guiding investment and resources to the most socially useful or socially desirable ends.Read more
The United States Congress is contemplating a bill, which will probably pass, to "prohibit the provision of Federal funds to State, territory, and local governments for payment of obligations," and also "to prohibit the Board of Governors of the Federal Reserve System from financially assisting State and local governments . . ."The bill was referred to referred to the House Financial Services Committee the day it was introduced, May 18.
The bill is mean-spirited, posturing, and an unwise way for a government to paint itself into a corner should such bailouts become the only alternative to the chaos of economic collapse. But none of those are the worst thing about the bill. The worst thing about HR 5276 is that it's based on a fundamental misunderstanding of money.Read more
A specter is haunting contemporary discussion of public finance: The word "socialize." We've heard it before.Read more