Another state gubernatorial candidate proposes a State Bank: Rich Whitney running for Illinois state governor as the Green Party candidate.

Rich Whitney, Illinois Green Party gubernatorial candidate, provided the Green Party response to the state of the state address given by Illinois governor Pat Quinn on January 13, 2010.

As many state governments are facing their worst fiscal crisis in decades, Illinois ranks 22 in terms of deficit spending, with a budget deficit of 11.3 percent of total spending (ref).

Green Party Candidate for Governor Rich Whitney states in his response to Governor Quinn’s State of the State Address:

“…That’s why I am the only candidate in this race who proposes to fund public improvements, and promote economic health, without any further tax increases, through the establishment of a state bank, a progressive idea that North Dakota adopted years ago, and that has helped keep that state debt-free even in these troubled economic times. Instead of going into more and more debt, to further enrich private banks, we should be using our tax revenue to further invest in our own State and its people, for the enrichment of our own economy.”

Read the entire statement here.

In a recent question and answer session, in response to what distinguishes himself from the other candidates, Whitney answered:

“I am the only candidate in this race who proposes to help eliminate our structural deficit and meet government obligations through the establishment of a state bank, a progressive idea that North Dakota adopted years ago, and that has helped keep that state debt-free even in these troubled economic times.”

And, in response to how he would solve Illinois’ budget deficit, Whitney responded:

“Create a State bank as a repository of all State tax revenues and pension contributions. While almost all states are struggling to balance their budgets like Illinois, one exception to the rule is North Dakota — the only state with its own bank. Instead of using State funds as a means to further enrich private banks, a State-owned bank could earn additional revenue for the State, while at the same time help spur economic development in Illinois, using the fractional reserve system to extend and expand credit where it is needed most, while borrowing from the Federal Reserve directly at the same 1 percent rate as commercial banks.”

Read the entire Q&A here.

Advertisements

Bradbury would create ‘Bank of Oregon’ if he were governor

By Harry Esteve, The Oregonian
January 20, 2010, 11:32AM

The state of Oregon should have its own bank so taxpayer dollars could help fund local businesses instead of boosting the profits of big multinational banks, says Bill Bradbury, Democratic candidate for governor and former secretary of state.

Bradbury announced his proposal today in Portland as part of his plan to find jobs for more Oregonians. The state bank, modeled on one in North Dakota, would form the cornerstone of his jobs proposal, he said.

“It’s time to make Oregon’s money work for Oregonians,” Bradbury said. Small businesses are hurting because banks are squeezing off credit necessary for growth.

Read the entire article here.

Khavari to Alex Sink: Here’s All the Help You Need to Oversee the State Board of Administration

Khavari has more great ideas!

MIAMI, Jan. 11 /PRNewswire/ — Noted economist Farid Khavari, a Democratic
candidate for Florida governor, has gained national attention for his plan to
create a state-owned bank in Florida. Today he responded to Chief Financial
Officer Alex Sink’s recent call for additional oversight of the State Board of
Administration (SBA). Sink is also a Democratic candidate for governor.

“The simplest way to eliminate dubious investing by the State Board of
Administration is to shine light on every deal. Simply post all documents
relating to every transaction on a website. For each deal, show who is selling
it, how many other deals they have sold the SBA, what fees the seller is
earning, who is buying, who approves it, how many other deals they have done
with this seller, and so on, together with a summary of the amount invested
and the terms.

“Now who would buy a bunch of derivatives from a company in the Cayman Islands
for $650 million, where over half of the money was lost? Who would ignore
pages and pages of warnings and buy junk ever again, when people could see
what is going on? Thousands of ordinary people with common sense would keep an
eye on the SBA for you, all for free,” Khavari said.

Read the entire article here.