Image courtesy SheerPost.
PBI Chair Ellen Brown has written a new article for SheerPost about the flurry of public banking activity in just the first two months of the new year. “Sixteen new bills to form publicly-owned banks or facilitate their formation were introduced in six U.S. states and two cities just in January and February.”
“Nearly 10 million jobs were lost to the lockdowns, over 100,000 businesses closed permanently, and a quarter of the population remains unbanked or underbanked. … State and local governments are also in dire straits due to the crisis. Their costs have shot up and their tax bases have shrunk. But the Fed’s “special purpose vehicles” were no help. The Municipal Liquidity Facility, ostensibly intended to relieve municipal debt burdens, lent at market interest rates plus a penalty, making borrowing at the facility so expensive that it went nearly unused; and it was discontinued in December.”