The Fed Has Spoken: No Bailout for Main Street

Ellen Brown • HuffingtonPost.com • January 13, 2011

The Federal Reserve was set up by bankers for bankers, and it has served them well. Out of the blue, it came up with $12.3 trillion in nearly interest-free credit to bail the banks out of a credit crunch they created. That same credit crisis has plunged state and local governments into insolvency, but the Fed has now delivered its ultimatum: there will be no “quantitative easing” for municipal governments.

…In the meantime, the states could take matters in their own hands and set up their own state-owned banks, on the model of the Bank of North Dakota. They could then have their own very-low-interest credit lines, just as the Wall Street banks do. Rather than spending or selling off valuable public assets, or hoarding them in massive rainy day funds made necessary by the lack of ready credit, states could LEVERAGE their assets into a very strong and abundant local credit system, following the accepted business practices of the Wall Street banks themselves.

Read entire article here.

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2 Responses

  1. And really only one clear way to stop this trend is to take back control of the Money / Monetary Policy and let WE the People make choices in how we Put Our people back to work . HR 833 is a Must , http://www.govtrack.us/congress/bill.xpd?bill=h111-833 , and fund these state banks though the commerce clause , http://oregoniansforastatebank.org/why-a-state-bank/ , reindustrializing and developing our needs . END the FEDERAL RESERVE act with Nullification in 2011 added into the HR 833 bill , http://canadafreepress.com/index.php/article/31532 We need to do with parts of our debt like is described in this video ; http://www.xtranormal.com/watch/7943877/ , because the assets that the debt created are substantial and should be converted into appreciating asset classes not devaluing . This will reverse the collapse of the economy . The debt can be an appreciating asset if parts are converted into accumulative asset classes , and save the states economic structure in the process .

  2. Madame Ellen Brown has again presented a superb argument on the defects of FED, and the proposed solutions for state bank public banking creation that must be given serious attention in exigency, in extremis to address the present financial woes squeezing us.

    If there is solution, why not put into effect so that many will benefit.

    Eric V. Encina

    The Federal Reserve Act was drafted by bankers to create a banker’s bank that would serve their interests.

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