Jerry Wilson, Another Gubernatorial Candidate for a State-Owned Bank, in Oregon!

Jerry Wilson, Another Gubernatorial Candidate for a State-Owned Bank in Oregon! • September 28, 2010

Establish a State Bank.
This bank would make 2% loans to municipalities, private companies and individuals to repair and expand Oregon’s transportation and renewable energy infrastructure, to make our factories, offices, homes and schools more energy efficient and to rebuild our manufacturing base. We need this bank to create long-term, living-wage jobs. And we need it now!

Jerry Wilson’s website is here.

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One Response

  1. While I am happy to hear that Mr. Wilson is a state bank enthusiast, I was disappointed to find that he is also a “deficit terrorist” [1]. I came to that conclusion after viewing a post titled “Bankruptcy of the United States” [2] on his blog. As Warren Mosler [3][4] says in his book “7 Deadly Innocent Frauds” [5] (7DIF) …

    “Federal government spending is in no case
    operationally constrained by revenues, meaning
    that there is no ‘solvency risk.’ In other words,
    the federal government can always make any and all
    payments in its own currency, no matter how large
    the deficit is, or how few taxes it collects.”

    In the forward for 7DIF, James K. Galbraith states….

    “Public deficits increase financial private savings – as a
    matter of accounting, dollar for dollar.”

    Mosler goes on to say…

    “[W]hen the U.S. government does what’s
    called ‘borrowing money,’ all it does is move funds from
    checking accounts at the Fed to savings accounts (Treasury
    securities) at the Fed. In fact, the entire $13 trillion national
    debt is nothing more than the economy’s total holdings of
    savings accounts at the Fed.”

    …as well as…

    “[T]o pay off the national debt the government
    changes two entries in its own spreadsheet – a number that
    says how many securities are owned by the private sector is
    changed down and another number that says how many U.S.
    dollars are being kept at the Fed in reserve accounts
    [a fancy term for checking accounts] is changed
    up. Nothing more. Debt paid. All creditors have their money
    back. What’s the big deal?

    So what happens if China refuses to buy our debt at current
    low-interest rates paid to them? Interest rates have to go up
    to attract their purchase of the Treasury Securities, right?
    Wrong! They can leave it in their checking account. It’s of no
    consequence to a government that understands its own
    monetary system. The funds are not used for spending, as
    previously described. There are no negative consequences
    of funds being in a checking account at the Fed rather than a
    savings account at the Fed.”

    There is so much more to quote, but as the book [5] is freely available in PDF format, I will let you read it at your leisure. Ultimately, those “deficit terrorists” that would impose austerity measures to “pay down the debt” which, in truth, is of no operational consequence, are the real threat to the economy and its participants. We have high unemployment now, meaning that there is a lack of purchasing power to support jobs to support production of products. Where does this “purchasing power” come from? Where does the money come from? We all know (here at least) that the U.S. Government/Fed/Banks create it at will. If the U.S. Government doesn’t either provide “stimulus” or simply remove constriction (i.e., taxes), what do you think will happen to “spending power”? If you think it will go up, I’ve got a bridge in Brooklyn to sell to you.

    We need to educate ourselves and the policy makers that what matters is ensuring that our productive capacity stays in balance. We need to make sure that we neither have too much money (if so, increase taxes), nor too little (if so, reduce taxes). Just enough to support Government infrastructure spending and private spending. And if you want to stave off inflation, stop the inflationary wars. And for goodness sake, don’t add to the problem by being a “deficit terrorist”!!!!!!

    BTW, you may be interested in Minnesota write-in gubernatorial candidate Leslie Davis and his “Davis Money Plan” [6], which calls for state chartered banks. He provides a video [7] of himself discussing the plan in a public television interview.


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