Special to the Arizona Daily Star
Tucson, Arizona | Published: 01.04.2010
By Steven Lesh
In January 2009, the group Democracy for America — Tucson brought Ellen Hodgson Brown, author of “Web of Debt,” to Tucson to discuss the economic crisis and to offer suggestions.
One that she offered was for state governments to form their own banks and, using fractional reserve banking practices and a government-owned bank, to create the money they need and lend it to themselves — just the way privately owned banks do.
Local and state governments have become dependent on borrowing to finance day-to-day operations and have been severely impacted by the frozen credit markets.
However, in addition to providing short-term financing, state-owned banks could supply financing for long-term investments in state resource development such as solar energy.
Read the entire Editorial here.