A call to Jerry Brown to save California: Sign a petition to create a CA state-owned bank!

Petition Started by: Scott Baker

To balance its budget, fund its obligations and keep from having to raise taxes, California should follow the model of North Dakota and Charter its own state bank.

North Dakota has had a state bank, which by charter, must contain all the state’s funds, and which, Ellen Brown tells us, “was established by the legislature in 1919 to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men.” The bank has met its purpose fabulously. Today, North Dakota is running its biggest surplus in its history.

Sign the petition here!

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4 Responses

  1. According to a 1976 book on the Bank of North Dakota governor Jerry Brown favored the creation of a state owned bank. A bill to create such a bank passed the New York state assembly in 1975 but was killed in the state senate. Let’s ask our governor if he still favors the state bank. with Democratic majorities in the legislature, it could happen if the governor jumped on the issue.

  2. The missing ingredient is motivation to legislators. try this:Litmus Test: Define ASSET as control over all or any part of any stock or flow of value. Move government held assets out from behind the shield of Sovereign Immunity and into the Prudent Person Standard of Care. One way to start this with NO government action needed would be to organize an Alaska-like Permanent Fund in every legislative district as a cooperative owned equally by every resident of each district, heeding the traditional rule benefit in proportion to contribution, and require managers to be held to the Prudent Person Standard required in the case of Brane v. Roth, in which the court ordered managers to pay restitution to members when managers failed to take appropriate steps to protect the members’ interests. These organizations would lobby, advertise, etc. to make their members better off, just as corporations with much narrower special interests do, with the massive new blessing of the Supreme Court. Reaction to this could be a Litmus Test: Who is for and who is against the US Public?. See the website http://www.era2000.net for more.

  3. This petition has several glaring faults, as set forth in these sentences: “If California used 8% as a baseline, then the state could deposit its expected $128 billion in revenues this year into the state bank, and have over 1.28 Trillion to loan! The state’s banks would howl.”

    The notion that depositing its $128 billion of annual state revenues would enable $1.28 trillion of lending is dead wrong. What a bank might expect is $4K per capita of deposits, as in ND, and loans would at best be about equal to deposits. So with a CA population of 17 million, a state bank might lend about $68 billion, less tham 1/20th of what the petition claims.

    Depositing all revenues does not result in a deposit balance equal to one year’s revenues, any more than depositing every paycheck means that your bank balance at the end of the year is equal to your annual salary. It would be, if you didn’t draw anything out to spend, but you, and the state, do just that.

    Also, there is confusion between capital requiremnents and cash balances needed for reserves. Deposits are not net worth, period. The 8% capital requirement is easily met, but not with deposits of any kind.

    Finally, the petition unwisely throws down the gauntlet against all banks, including local banks. North Dakota has the highest per capita number of local banks in the US, proving that a state-owned bank encourages rather than destroys local banks, It would be good to enlist them in the battle to establish a state bank, instead of lumping them in with the big banks opposing such a move.

    • Oops. Slipped a cog. CA population is not 17 million but 37 million. This means that with $4K per capita deposits as in ND, CA could lend about $148 billion. A significant total, but much less than the $1.28 trillion the petition erroneoulsy claims. .

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