OCCUPY Boston General Assembly speakers advocate for public banks, re-regulation and even nationalization in the banking and finance sectors

Deborah Orr • http://www.occupyboston.org • May 4, 2012

Jim Campen, professor emeritus of economics at UMass-Boston and a former executive director of Americans for Fairness in Lending, discussed the flow of money, credit, goods and services through the economy at tonight’s general assembly.Campen spoke first and the photographer came in late, and so can’t provide much detail about his talk.

Fred Mosely, economics professor at Mt Holyoke College, reviewed the history of US banking, focusing on the insight that capitalism is inherently unstable without vigorous, active regulation. He appealed for a return to policies that would propel the government to nationalize failing banks and sack their dysfunctional boards of directors – rather than throw bailout money at them. Mosely also advocated for public state-owned banks, and listed their advantages as including:

• Acting as a ‘public option’ in banking whose presence helps to stabilize the whole banking system.
• Provide counter-cyclical lending to minimize recessions.
• Provide low interest rates on home mortgages and student loans.
• Can allocate credit to achieve social-eoconomic objectives such as affordable housing, green energy, health care, etc.

Read the article here.

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One Response

  1. Private banking vs public banking.
     
    Private money-supply and banking is the chief–maybe the only–cause of the present and severe wealth and income gap In the USA and world-wide. All the screaming and moaning by progressives is in vain. The OWS should zero in on just one thing–the Fed and all the privately owned banks. Even the credit unions are connected to the Fed, i.e., they report to the Fed just like the banks, re, their reserve funds. 
     
    In fact, none of the country’s social, educational, infrastructural, health or housing problems will ever be solved until the following situation transpires—–
     
    The government prints and owns certificates of legal tender (of exchange) for use in the people’s commerce. The central government lends to state government banks at a given interest rate. Those banks lend to branches at that interest plus an additional percent amount. They in turn lend to people and businesses at that same interest rate plus an additional percent amount. The income then generated by this interest for the two governments, precludes the need for any taxes. All branches have the same variety of accounts that now exist. The interest rates are adjusted, based on the needs of the governments for the public welfare–minimum safety and security nets, education, health and infrastructure. Interest rates at all levels are determined and coordinated by board members of each bank that are selected through a transparent political/electoral process with term limits.
     
    The central bank prints money (not the present Fed) as is needed for the economy as decided by a board, which members are selected through a transparent political/electoral process with term limits. 
     
    The constitution permits money-printing and banking by the federal government. “……… even though paper money is not expressly permitted by the Constitution, it is also not expressly forbidden, and in spite of the extra-constitutional opinions of some of the Framers, the ability to print paper money is a necessary and proper power of the federal government.” Source: http://www.usconstitution.net/constfaq_q154.html
     
    The present, private banking system? No need to nationalize it or stop its existence. Let the private and business customer decide which tender he or she wants to use—the “certificate of exchange” that is printed by the private bank system or the US Government-backed “certificate of exchange.” 
     

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