Farid Khavari for Florida Governor: Explains the Benefits of a State-Owned Bank [Video]

Khavari for Governor – Bank of the State of Florida
Khavari4Governor • September 12, 2009

There is a growing national movement to establish state owned banks. This ad for Florida gubernatorial candidate Farid A. Khavari outlines the benefits.

6% CD’s, 2% fixed-rate mortgages, 6% credit cards from a state-owned bank. State earns billions per year, citizens save hundreds of billions per year in interest, money circulates in your state! Yes, it is possible, and quite simple. Even bankers agree it would work, and they are worried! Khavari is an economist, not a politician. He is not owned by banks and insurance companies. This would work in ANY STATE! Hey, someone send this to Arnold Schwarzeneger and save California!!

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5 Responses

  1. The MAJOR fallacy that we are mislead to believe is that banks loan the money they have on deposit. They don’t! As difficult as this is to believe, it’s true. Banks extend “bank credit,” which is used as “money,” which is created by bookkeeping… entry out of thin air. Check out the Federal Reserve website. (http://www.federalreserve.gov/releases/h8/current/default.htm They refer to loans as “bank credit”! Further, they list the loans, or “bank credit,” as ASSETS! Why? Because they bring in interest, or profit!

    Actually, private banks should not have the authority to do this because the “bank credit” they extend is not theirs to extend since the “money” is backed by the full faith of the United States. Only PUBLIC banks should have this authority. So, at a minimum, states owning banks is a step in the right direction.

    The interest on the 2% fixed-rate mortgages and 6% credit cards represent income, or profit. The 6% on CDs represents an expense. Most depositors don’t buy CDs.

    Check this article out: Monetary reform: reclaiming $1 trillion every year through public creation of money
    http://www.examiner.com/x-18425-LA-County-Nonpartisan-Examiner~y2009m8d22-Monetary-reform-reclaiming-1-trillion-every-year-through-public-creation-of-money
    Private banks collecting interest on “bank credit” out of thin air is egregiously wrong and is the mechanism of wealth transfer ~$1+ trillion a year from We the People to the private bankers.

  2. Hi Ellen I agree somewhat with AnnT. Capitalism went over the morality cliff with the profit motive.I will support State Banks,but we need to make them completely non-profit in the near future.I know Mr.Khavari is thinking he need something to get people interested. That`s true and good,we need to start somewhere. State Banks have my full support as long as we remember their`s room for improve. The State Bank commercial is ok,but i think it try to do to much to fast. The message need to be slow down,when doing something new,people need time to understand it.But it`s a very good start.A special message is needed for special groups( jobless & foreclose homeowners) That`s a base Obama done lost,State Bank candidate should help them to become their base. THANKS

  3. I believe the mechanism is called fractional reserve lending. And it is what banks, by law, use.

    To NOT take advantage of it in the way that Khavari says in his platform would be foolish. He’s the economist. It will generate money for the state, that won’t have to come from taxpayers in the form of taxes. For all Floridians participating in the bank (the people’s bank), they will realize the savings in terms of lower cost. Lowering cost is the whole point here, and that is exactly what it would do.

    When you have a lower cost, you then have one of two things. You have more disposable income to use for whatever, school, a mortgage for example. Or you have money to sock away in saving in the bank and earn real interest, safely.

    I fail to see any downside to HIS PLAN. Emphasis on ‘his plan.’ You can’t compare it to Wall St. or Bank of America because this state-owned bank concept is nothing like the way they operate.

  4. This is a really cool deal , it might something to incorporate into your ideas .

    http://www.bankonyourself.com/

    http://www.youtube.com/user/BankOnYourself

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