John Lawrence • www.sandiegofreepress.com • September 6, 2013
California Could Solve Its Budget Problems by Starting a Public Bank Like North Dakota Did
The most solvent state in the US is North Dakota which has low unemployment, no budget deficit and a burgeoning economy. The main reason is that the state has a public bank (BND) in which state revenues and pension funds can be invested making it unnecessary to send the money out of the state to Wall Street. All state revenues are deposited in the BND by law. Instead of Wall Street making the profits on North Dakota’s money, North Dakota is making the profits.
Instead of paying interest on debt bonds, North Dakota is reinvesting the interest its public bank makes on infrastructure improvements and lowering state income taxes among other things.
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