Bank of America Is in Deep Trouble, and There May Be Financial Disaster on the Horizon: The solution is Public Banking!

Bank of America Is in Deep Trouble, and There May Be Financial Disaster on the Horizon
Joshua Holland • AlterNet • November 11, 2010

Will Bank of America be the first Wall Street giant to once again point a gun to its own head, telling us it’ll crash and burn and take down the financial system if we don’t pony up for another massive bailout?

…There are alternatives. As in 2008, the federal government could put failing financial institutions into receivership. But some experts are saying that if we want to get off the roller coaster of an economy moving from one financial bubble to the next, a bolder approach is necessary: permanent nationalization of banks that can’t survive without public dollars.

…Several states have considered proposals to emulate North Dakota[‘s state-owned bank], but such a bold move would obviously be all but impossible in Washington. But it shouldn’t be off the table. Banks provide an “intermediary good” to the economy, creating no real value. But Big Finance’s speculation economy has caused great and real pain for the rest of us. As Joe Stiglitz put it, there’s no reason in the world the incentives of the banks shouldn’t be better aligned with the interests of the country and its citizens.

Read the entire article here.

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9 Responses

  1. We the people need to take control of the Monetary Policy in the USA and redesign and develop our long term economic policy around the way we issue credit and value its development because the FEDERAL RESERVE is too Internationally influenced and this is placing the USA in a Position of under valued and under appreciated in every aspect and its time for a Change . HR 833 bill

  2. Ellen if you want to be able to implement the state banking approach you will need to have Congress in control of the Monetary Policy like it was before 1913 when they initiated the Federal Reserve act . The Federal reserve is a Organization that Now has so much anti-Americanism involved in the mechanics of the finance and credit of the institution that its become a conflict of USA Interest and YOU ARE RIGHT the only way to redirect the capital flows and use it in sustaining ways that help the American People is to put the Power of Decision making over Monetary Policy back in the hands of WE the PEOPLE .

    Watch these Videos , ( will post in the next window ) and see the way the Internationalists are too much a Influence on not just the way DEBT Money was used to influence the wrong kinds of Investments but then through these same International Investment houses became the Conduit for extraction of the primary capital that was used to back-up the credit and financing of these debts that was routed back out of the country and to the International Communities , it almost looks like we are witnessing these Elites both in our Government and internationally looting , pillaging , rat holing , and stocking up resources from the burned out shells of world economies , propping them up while they finish the consolidation process dividing up resource supply locations around the world while the Federal Reserve and US Government put together their forms of finance bailouts and stimulus to prop up the public while they worked to pass legislation to gain major control over resource use in the USA away from the private sector .
    The Bigger reason though I believe is Why they gave up on the desire to Hold these debts and collect their interest payments like the old standard of debt equity has always been used in finance , I suspect that over the past 10-15 years of science bubbling up with more and more reasons to see the world as a finite element , the Underwriting sources were and still are today looking at the issue of how science is pointing to a time in the near future where the birth rate and Famine will meet . The Numbers say 2040 , so to be an investor in these times and be at peace with holding a loan or lending more and more capital to expand an unsustainable future is why I think we finally saw a complete collapse of the private sector financial system .

    The plan must be now to secure our Homeland , look to improve the values we have in our communities and how we can create and provide both the needs and the educational values of what we must do to maintain the sustainability of our future . So far when I look at the Fertility Charts in the Western Civilizations , , the Free Enterprise Capitalism system we have been using seems to suggest a sustaining population if you do not factor in illegal immigration , and when you look at those immigrants and where they are coming from their Population growth is unsustainable , so I would attribute that to a Higher level of educational value to be informed of the finite reasoning of earth , its resources and how we can learn the values of sustainable life in a Family unit . The idea that creating sustainable life which is in turn a Higher quality of Life is an achievement that GOD talks about in the scriptures , but we as people in controlled environments have lost this connection to the understandings of both technical and spiritual educational values . I believe this has been intentional because of the fundamental factor of how the technocrats feel that they must control the future for a certain outcome rather than using what is understandable and reasonable putting into text and making these teaching available as the means to an ends . And if allowing some of the teachings of God to touch the senses to craft an understanding that limits are a fact of life , then maybe sustainable life could be a reality sooner rather than later after struggle , that always seems to be what evolves is the reality . We can point to history repeating this process and it always seems to be because of an intervention in the time line that altered the process of peoples understanding of a balance of sustainable life with the process of enabling life when it was not realized a benefit of expanding the quality of sustainability , but rather a expansion of just ones own vanity , and this be a Point of entry where Gods words can help to balance the true meaning of Sustainability .
    In the true sense of Sustainability if you reason the terms of the 7 deadly sins into everyday life and how by using these principles simply to create an Understanding of whats is needed in life and what would be considered waste , sustainable life evolves . In almost every Instance when we look at the problems we face as a creditor and debtor nation Vanity almost every time is at the root of the Imbalance .
    So like it or not and whether or not we choose to term is Gods words or just a Right or Wrong way to create sustainable life on Finite Earth Philosophy , the two seem to have the same meanings and create the same results .

    Our current Finance Collapse is an process of to much vanity on the part of an Image of a Financial Institute that is Influenced today by those whose vanity is becoming we the people demise , and the Only way to change this trajectory of means to and ends is to put the decision making of the Monetary Policy back in the hands of the majority of the American people through their Congress . HR 833 is a Start .

  3. , this shows a hearing in the first part between Ben Bernanke and Allen Grayson , Barney Frank Chairing the Finance Committee . You will scream END the FED !!!!!
    These Videos show Greenspan admitting the banks fraud and the fraud in
    Foreclosure , This is More REASON why We the PEOPLE need to be in control of
    US Monetary Policy , by Ending the Federal Reserve .

  4. Take a look at these links , these actions were all done in the last 8 months… something is going to happen soon , some big announcement , like a dollar rejection for exports from these countries . The BRIC and OPEC alliance doesn’t need anything the USA has any longer , food being the final product they now have a established source in South America to fill the loss of food from the USA , so all we have is printed dollars with piles of debt backing it up , dollar rejection to follow……
    I think they could announce a dollar rejection next year as the reserve currency . I mean all we got to back up the dollar with is debt . I smell Isolation because really when you boil it down the USA is only 25 % of the world economy as long as the world continues to Accept the USA debt and buys Treasuries as collateral and with the FED buying 600 billion in Treasuries now I would say thats a sign that shows the foreign investors are not buying US paper anymore . when I see all this stuff it looks like the USA better tell the Environmentalist Voter bases to get out of the way because it won’t be too long before we see the dollar less and less taken in exchange for Imported goods and less and less supply in the USA as a Result , forcing Prices up on what supply we do have in stock on the retail shelves in the USA . We need to start massive developments of our domestic energy programs , all forms or we are going to suffer .
    China, Russia vow to advance military ties
    India in Talks to Buy 300 Russian Fighter Jets; Working Together to Build a New Generation Fighter Jet

    Russia signs India nuclear reactor deal

    Obama is Losing control of Economic National Security in oil price


    Russia to build nuclear power station in Venezuela

  5. There is one thing we the people can do to recapitalize the economy and put domestic industry back to work , and that is pass HR 833 and redirect tax cuts to industry that can develop domestic resources and alternative resources , and work with neighboring nations like Mexico and Canada .

    WE the People might try and model a monetary theory around this much needed project like a long term Brettonwoods approach , ” How to build a desalination system to desalinate ocean water out of the Gulf of Mexico , and pump it inland to the edge of the Ogallala Aquifer and pump the water back into the ground refilling the depleting resource for food production . ,
    If we would restructure our tax code to be better incentive driven to form capital around the needed Infrastructure like installing desalination plants like India is doing , , and install a Pipeline infrastructure from coastline to Ogallala Aquifer sites in the Midwest to ” Recharge the Aquifer” , and this would set the stage for future developments of these types of Growing facilities to be built over a long term for the needs of alternative food productions as well as a Whole Host of other creative resource needs Like Bio Algae growing facilities .

    And design this to be part of the Clinton call for a pipeline from Canada through the Midwest to supply energy to the Refineries in the Louisiana area ad we the people would see some stability in our Primary Wealth creation markets come back for future generations .

    The Pulp from this is high in Protein so all kinds of food stuff could be generated along with the energy produced from this resource , and we should be expanding this resource in Mexico with a Immigration Policy so they can sustain their population without the Drug money .

    And develop things like this into the plans of the project ;

    The FEDERAL RESERVE should be targeting their QE program towards specific areas of expansion so that proper goals for growth can be accomplished , rather than the Spaghetti approach , and The only way to drive this fundamental to gain its expansion is to tie a incentive reason to the desire to risk expanding the areas of this type of growth , and here are some ideas ;

  6. And the ratio between Raw Material Resource development and the Population of the state in North Dakota needs to be a factor in the idea of why a state owned banking industry can create the assets and equity to warrant the allocation of capital exchange over say a state that has the exact opposite in these fundamentals .
    The need to understanding the Intrinsic value relationships that need to be established between states that have a supply of resources that are Life giving beyond the population rate versus a state that has a Limited raw resource supply in relationship to population , but has processes to develop and produce the raw materials into usable products is where relationship with the help of a Banking Industry like you are suggesting , along with the Monetary Policy in the control of Congress represented by and for and of We the people , Ellen this Might work if its recreated in these forms of understanding .

    The Fact that BRIC and OPEC Nations are forming alliances like they are that are all about dominating their resources they have among themselves shows us what is at stake here and its all about supplying a resource to its people to steer them in a hopeful and supportive direction to the alliance . We should see this and understand that we can do the same between our States inside this Nation , and it starts with your idea I think , but it won’t get the proper representation from the Funding center like it currently is under the FEDERAL RESERVE act because of the Infiltration of Internationalism thats Infiltrated the FEDERAL RESERVE and is fundamentally Flawed and not able to represent the USA any longer .

  7. Ellen if we would have used Interest rates and kept standard 30 % minimum debt to equity rates in the qualifications of Underwriting would this have been better to have kept credit growth and Trade , public and private deficits more balanced , that Might have worked in the same manner say as a Trade Tariff Policy ?????
    I mean we would have only seen probably a 10 trillion dollar GDP but it certainly would have been stable and maybe sustainable if the trajectory of the capital expansion was directed at a industrial expansion that say was better focused of the sustainable aspects of the Human aspects of sustaining life on finite earth … expanding the value of education around the principles of what earth and the resource base is so that by understanding this conservation and environmental quality along with a sense of pressure to develop the Alternative Renewable resources of tomorrow would be in the topic of education too , then true sustainable valued growth in a GDP fundamental would be our reality which in turn could sustain the growth of a retirement account with a way to facilitate a finacial exchange in the private finance institutes that would bear the usage cost in Interest rate paying positions like CDs, Bonds , and other forms of Credit based positions of financial guarantees .
    Its all because of the lack of trust in the future from a Lack of trust in the ways we are developing resources for future developments of sustainable life thats froze the private sector monetary process , and until we see a societal shift in the fundamental philosophy of what we are teaching the society in terms of sustainable value we are going to continue to see this extreme volatility in all forms of economics, finance and deficits . You can see this sustainability issue at place with how the BRIC and OPEC Nations are consolidating world Resource supply and the locations within these alliances .
    Our only hope is to fast track into a Domestic Alternative resource development phase immediately because the restriction thats coming from the BRIC and OPEC nations soon as they close the accumulation of dollars down by rejecting the currency we are going to see supply shortages rise in the USA the longer we do nothing to replace the supply we are losing from these outside sources .
    Our manufacturing base is gone , hell we don’t even make generator windings or a Nut and Bolt anymore , and the time line to reboot that Industry will take longer than we have to keep the civilian population from becoming panicked and violence result . The USA is down to where it is Only printing Paper Dollars to Fund the purchasing of imports , how long before the BRIC and OPEC nations say we don’t want your paper Dollars because they are only paper and you Americans are even monetizing the credit to print those dollars you want to give us for our Durable Products , hows that a logical exchange ?????

  8. These Quotes from Thomas Jefferson are Incredibly accurate in describing our currency economic & social plight !!!!!

    John F. Kennedy held a dinner in the white House for a group of the brightest minds in the nation at that time. He made this statement:

    “This is perhaps the assembly of the most intelligence ever to gather at one time in the White House with the exception of when Thomas Jefferson dined alone.”

    Especially read Jefferson ‘s last quote from 1802.

    When we get piled upon one another in large cities, as in Europe, we shall become as corrupt as Europe .
    Thomas Jefferson

    The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.
    Thomas Jefferson

    It is incumbent on every generation to pay its own debts as it goes. A principle

    which if acted on would save one-half the wars of the world.
    Thomas Jefferson

    I predict future happiness for Americans if they can prevent the government from wasting

    the labors of the people under the pretense of taking care of them.
    Thomas Jefferson

    My reading of history convinces me that most bad government results from too much government.
    Thomas Jefferson

    No free man shall ever be debarred the use of arms.
    Thomas Jefferson

    The strongest reason for the people to retain the right to keep and bear arms is,

    as a last resort, to protect themselves against tyranny in government.
    Thomas Jefferson

    To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.
    Thomas Jefferson

    And in 1802 Thomas Jefferson said:

    ” I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people
    ever allow private banks to control the issue of their currency, first by inflation, then by deflation,
    the banks and corporations that will grow up around the banks will deprive the people of all property
    – until their children wake-up homeless on the continent their fathers conquered.”

    • Very good and true comment! The private banking institution which currently controls the issue of currency in the US (Washington DC) and the USA, formerly the united States of America, known as the Fed or Federal Reserve has no problem proving what Jefferson said in 1802.

      The banking institutions have been and continue to be very dangerous to our liberties, however I would have to say that it is the Americans themselves and their wide spread ignorance that is the most dangerous of them all!

      People have to start figuring out who they are (human beings not persons) and quit consenting to being a corporation (the one created by the gov. that appears to be their name) or a surety to the corporation (Trust) because it’s the big trick that is really effecting us all. A person is a corporation by legal definition and it is the person who receives “privileges” and “benefits” instead of what a free man or human being receives which are rights and title. The Amish are a good example of free men, however they are crossing over to the side where the things (grass) are greener or at least appear to be, and they are making a big mistake since it’s already been proved time and time again that substance holds value and/or values whether it’s in money, people or families because of the faith instilled in it. Why give that up to become a fiction who deals in things without substance (the “fiat money”) and who has to give up all rights in exchange for a set of privileges that can be modified at any time?

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