KEXP Presents Mind Over Matters; Sustainability Segments: Ellen Brown

this is diane warren your host on the sustainability segment of mind over matters and t x t seattle ninety point three a fan an online katie eckstein god or a ge my guess this morning as ellen brown who developed her research skills as an attorney practicing civil litigation in los angeles ellen is author of eleven books including her most recent book web of get an analysis of the federal reserve and the money trust ellen brown is here today to tell us about the growing movement for publicly owned banks her articles on this topic may be found online at yes magazine dot org welcome alan let's start with a very basic question what are publicly owned banks what's the definition well ashley kahn people have pointed out that the burden than he ever paid publicly i mean the company that i'm public meeting they've had the fact that the project it of the market that's what i am a new government on big publicly under oath that they own if they are to be any or a county or could even be something like the

university of them degree in california have a lot of money tucked away in a pool that could be a couple of days before their own bank and then they could leverage that money or you can land many times more money than you actually have your of that particular bank of that all over money and actually created by they would all come from death with no money you know money to me that that part of my book whether that people about that people think that the government issued the money and it apparently got under but actually the private banks that issue the money an anthology that credit and i thought that the comedy would the advantages of publicly owned banks over a privately owned banks a publicly owned they or if they don't they have the advantage that they can play the game they thinking that the bank to play and create its own money well if one day they cannot north dakota and it had a mission statement in which it said that its purpose is

to help the farmers cupped me in at development of energy the loan for better health care for public purpose where the corporation a private bank he is required by law to do the thing that will make them of money for its shareholders felt that mean for it and if you're going in fact and you have that high frequency computer program that know him profit off of everybody else's trade in that market in your trip between that and making that might fail you're actually bound by law to speculate even if the math ultimately bad for the environment that the fact that one difference is that for the public to be kind of for the public that can take a long range view and the ten year project and so i worry about their three months quarterly bottom line but the fact that what they can do is actually create the money needed for all the things that we now they've

made that the people made and we're not paying them money for market it's not trickling down my village while they were bailed out by the government seven hundred billion dollars have now turned into four point eight trillion dollars that much money have actually kind of a twenty four trillion of that made its potential liability the actual money at that were planted to try and they pay back a try but there's no maliki trying out there that we the taxpayers have a direct and the banks are right now that the main benefit right because of that collapsed in the bailout they get borrow from each other at the bank lending rate which is the euro you point you fire another record ever prove that they get the best interest rate around and meanwhile we that they are paying the highest rate at a diner in the region and with the theory and because

that radiated a lot they're a therefore that they thought their rating though that might be a few the interest rate on the mind if you're going out they had nobody had failed and that we're paying a california four percent of average to borrow money where'd the bank for paying america point two five percentage of our money so if you're a bank you can then capitalize on all the benefits of that thing there looking back to the beginning of the united states what is the historical president for publicly owned banks preferred hundred years before iraqis their country we had to publicly accuse money in italy today a brilliant invention of the american public they didn't have all the parts and fell ill effects of the governor matt do that without the idea of paying it felt good when he didn't have the money to pay them with the pope a very thick and basically with like and we lived in you can work for the community and it apart and then the tricky for an equivalent i might've if a

parent within the community and the community recognized that's because the three feet are required in the payment of kept them out of the moment and i think no they have their own bank of the best of them was in benjamin franklin county and he wrote a very grave about a third of the thirty audible for that abundantly growth in the number of people remark how well the conduct of that they got out of that world enough to have nothing and that made us play it where did they get the money they had actually created the credit with their own thinking in pennsylvania before they got the idea of adding up your own bank they had to borrow from the british banker if you had a percentage of gold or all of that paper notes that works remarkably well although it simply attempting to leave during that time the tenth inning and take note fact that they had no government debt and that it would not apply that with poetry and of all the perfect thing for

them but then king george stepped in and said that the conduct non curricular of money if you needed that the head well that that british baker clean them off both the british merchant were complaining the terror they were dealing with ali that i knew that had all the money to them and they don't really know if they're getting paid in and the mechanic are prettier thoughtful about how they get their money that they get credit and credit and they didn't have that dana milbank with blank philip you've put money out there and that didn't placate the money supply which devalued the current things that are going to trial in their fate heavy very little experiment i am ali khan a third thing turgeon no my bad that they couldn't figure of money had to pay the attack in gold or the british big north american and depression because they had their own money everything with moving wife i mean i am and midnight the money with five well actually they were leaving their of money that they weren't allowed to insure the new money and they had a platform called wish they didn't have

those they were just like a third world country that have to borrow from the imf and pay a dollar but they don't have it puts them at the mercy of a foreign power until finally they get to about the printing their own money and the cliff considered an act of rebellion by the cane and he had been typically that they couldn't be on the ballot apparently quite unfair and what really precipitated their religion or what happened here with the fact that they are owed to hack into her as a matter of and there were no audience here and diane warren and my guest is author ellen brown our topic is the growing movement for publicly owned banks and you're tuned to the sustainability segment of mind over matter is on k e x p nine point three of them and on the web add k e x p dot org et you've written articles about the recent movement toward publicly owned banks again having them come back into our culture what is driving this movement although they'd have a credit for coming they're all not able to meet their budget all the wine when they did that actually and that not because

they have the bank and it had a very thin magazines and then it would get repaid it funded and didn't really have a fire we're losing their farm for the wealthy bankers and they get tired of their money flowing out a faith they want to keep their money and they and they want to generate their own credit so they got together and formed something called the non partisan league and they did manage to win our economic out there baking place and that movement today is also the nonpartisan there's seven candidates who are proposing if they don't they and their platform in seven different faith other three democrats to dream for one republican and one independent further outcry spectrum and then if i have faith that actually have bills pending washington state illinois math he fit for good man in michigan michigan for example is that are people are fleeing the faith you

try it it's not that people can afford another thing nobody thereby they've left the city though their part to the trident and the look like a war and i thought a banking commissioner for michigan with complaining that the problem in the banking world that they have value of the taliban at what they could fetch the day in the market and a hundred thousand dollar property and it goes into default and that it may become care going for ten thousand dollars nobody bae deadlier hundred thousand dollar path that becomes the tenth of that and because your act that is an independent from a mom yeah that might work before a second nine dollars a month that might nominate for the bank are not able to land there because they need much that they have a huge amount of capital and huge amount of the poverty and i think that they gave that up a nike putter do you didn't have a bank and like credit though technically all the effort that they have the efforts to the bank

and by law all of the revenues that they go into the bank for that if they're deprived of that an articulate going to need both capital and the private but they've got to go every day to have them and could follow the same model all the different politician that have different ideas different than critique of our it is running a democrat in florida and it appears to actually be if they don't banks like a commercial bank that they would actually when you are monolithic very low in china and they would fill my money because the little leverage thing or that they can take it out for granted and many times that amount and then landing a few percentage of harmonica because why with the capitol and then in a reflection and they are talking about going into like north dakota where it's really a bank if they were they really partnering with other things and sort of acting like a bunch of things like that that aren't there

in america particularly at that are experimenting with something new and they all have different amenities or actually than adequate but there are only thing i've dealt with his remarkable i think i've been writing and they have a barrier to happen man i think beating the bushes kind that point out how the problem for the fed by harry own credit card hacking there seem to be a number of politicians who are stepping forward and proposing having publically owned banks in their states what kind of resistance is they're politically to this idea well i think it's largely a democratic proposal and for a poet and that they're that different social or permanent mission can afford the proposal of a hundred and fifty million that the initial attack of the path that but now critic of aryan florida fell to the charge of socialism knowing where people feared that they think what i'm talking about where the faith of the people working with where the

government owned that means that connection wow really awesome it is that very vividly that we have a public leone court that you would want the pirates gerrit you could be bought off dealing with here so likewise when you're talking about credit which is mary created on the book the bank holiday you have a public and he came out as well at it mathematically able to go back to that day or two people but if the prophet are safe and out of that all the time then it appeared had been and we've been doing that for making for three hundred years and we've come to the end of the line let's go into a bit more detail about the bank in north dakota the one state that does have its own bank it's owned by the state which you just highlight again what have been the advantages to the state of north dakota of having its own bank well pity on the state that actually routing drive when they care

of leaving drive and it on the day that they were committed and it complained that i mean some people say well that oil when i think they're a metaphor for think there were able to make their budget without cut back and then i'm three and the narrative they allow that the reality now the online the other one a live mike cannon about it for every value that they're projecting that in twenty eleven there've been kept that going for him or their budget gary you could boil away you have oil but many they have oil does the bank of north dakota take deposits from citizens but that could take the profit from the faith and help where we have a very good the loan program and they make love the part of the farmers for one pretty and there's a lot of benefit i'd rather their

with an exemption in the health care bill plympton there when we didn't know about which said that the government now by the direct lending of allah found that it worked thank you think of intimate medium whether that live forty five year failed program or at an honor at underwriting a lot of the bank the garment been very bad keeper could be direct lending to be the banks that they're with that exemption and therefore whether there were any event mr mellman bank but not the cause and he went out all over that north dakota that either put that in their support you know especially when they take it out because they don't want to make the bank and i'm going to look at that in fact he argues that what's important and in fact the bank and i think that the default rate on their lunch with like half the top rate and for the country if they did not sell off their love but the other thing that's when i fell a month and that's with a lot of worry about whether they're good credit risk and that they were

shepherding their loan that would help pay and working with them there they were only thing he found in a good way and active every day that that had their own bank that went through the federal government would leave them a huge burden of february to find other things that have to get around you're listening to the sustainability segment of mind over matters and k x p seattle ninety point three of them and on the web a k x p dad archie i'm dianne harman my guest is author ellen brown our topic is the growing movement for publicly owned banks in north dakota are the deposits fdic insured or only insured by the state funds i know they're actually better off in north dakota is a very stable after what they want or even a profitable is that the bank returned to get it and they're your profit from the bank and go back to that and how would

the success of the north dakota bank translate to larger states well that is something that people debate but i think it would work very well i mean i think different california more we are not that i know the figure from california and california currently eighteen billion dollars in the red and yet they have seventy billion dollars managed by the law that the governor cannot that because the problem of very violent or county human body really a lot of money and every day all the money made by you know that couple pension fund that or we can spend the pension fund the pension fund and how they're trying to make money and they're trying to grow alfalfa for their pension bill which includes you the treasure is charged with managing the fine so he could hear mark ten billion dollar and pledge than capital for a day and then

whoever of money to whichever wonderful i do you do then something extra like the data that money can have on their drive for prefabs pledged a bond so that they'll dry for prefab for whoever before you vote for that they now if that fine need the money out fine there for much of their money in there and the color palette the clamoring demands of their investment they've got that sort of capital and manford apartment if we get like north dakota california right now have seventeen billion dollars and about a third of the map a few find work at my finicky billion a month and then how you rebuild the california have huge potential for creating credit on the book and even if you're talking about even better by reporters that they could be buying a point three five

but like the other very cool is it likely to take to set up a public bank once the state has passed the necessary legislation well they get back out there that you could have a bank in a matter of a couple months effect you know their bank that are my linkedin or you're building the question why i like building where people that they threatened to take mine for a day to become a commercial bank goldman sachs which over a commercial bank overnight like literally overnight so if they wanted to see if it's every bit as good with that with that benefits were here and why we need to do that and how foolish it is that we're in a credit card when we've got everything we need we've got the people at the labor and that the reports that we get that have the money to put them together a minute on emile griffith they fell and it went to the governor's could get by executive order or at the legislature could do it very quickly but the problem is you know how to lead the thirtieth i

think the likely conventionally play with that idea of the low part the formation of publicly owned state gangs likely affect the current for private banks in it can get how the other bank the other bank like that they might not have occurred if that like the central bank and felt it first provide what happens with it when the housing market collapse you think the referee would buy the collateralized debt obligation which were the bundled mortgages rather than to reveal there were five that if security and take a month off debate and then that they can make more love them i love them i love theater the huge potential for credit and then when the collateralized debt obligations prove to be inaccurate every one of my many were there that whole market when a way that the chinese japanese european other people that were by our mortgage backed security to realize that the very rich abandoned and when that happens

a ten trillion dollar hole resulted in the money i mean that might mean credit would evaporate with one away the kodak that they can make theirs and the big bang that it can buy up the land and allow that bill they make my lunch and while they actually thought that the lovin the creativity how do the credit unions fit into the public banking model and if they don't actually leverage in other words they lend money they have and the more people are there there are good now and community sort of thing but they don't have the potential for anyone to build a dam or a railroaded that they don't have the potential for creating million dollars credit on a book and finding the thing that the then will create the profits to a payphone down so things most help main street

right now we have a lack of credit enough market that they can't get lunch like do you feel calm on earth are having trouble getting around it because wall street is not making month anymore because their bank credit where it was treated with a big bank you're not able to sell off their land like they used to do you even care if you need loans were evicted they are even gets the finale it up with them and there's a limit to how much the bank among those that they they couldn't get that credit to keep going again we can have a bunch of credit like we had a few years ago and you feel how likely is it that the us will create an extensive public banking system well the question for your eternal i think if you're a male candidate gary in an effort globally to take away the ability of countries either to issue their own money or to borrow from their own publicly owned bank and we're fine right into that have

refined world of type of that only have this horrible federal that really have i know about the pharaoh that that's not actually the problem because the federal debt is the money on the problem at the end of the government created the money itself or on central bank and three yeah it merely credit with what you need to run an economy i mean i didn't keep trying and hoping because they think that romney alternative he might more more people are coming to that really quite made it a five bill pier what steps have been taken at the federal level to a public thinking right now though the proposal for a green bay which is part of the energy bill and every bank would be owned by the government and we began with ten billion dollars a couple from the government and then over five years that could be a great day but then the planet that that could be due to leverage or few multiplied many times over in q can find that from our five

hundred billion in credit which would be used to develop all these small part of giving green protective of the fact that the education bill that the government will now be inching along directly for you that informal going into banking they're going to be borrowing from the treasury paths twenty times reloading it and explain it in the big urban areas before prevent credit for that really technically make the education department a bank they typically fed up and leaving them they could defend their best landing arrangement that other banks have another weakness they're very poetic and that they can get their money and their three point two five percent the federal reserve itself rebates to ensure that they get to the government after the technocrat though when everybody complains about which is the government borrowing from a very fair which means a very few of actually printing money apparently that every letter that hyper inflationary in fact that is the

cheapest way that we can get money that it where the government should be getting money not a very vivid not want to leave at one osprey that up to the private entity and it became that federal income tax that up right on whether in or if you have authority for paying the entrance there was going to be oh to the federal reserve for all the money that they were about to create and lend to the government but in the nineteen fifties right path man who is head of the thinking pretty committee appeared closely and thought they were up to and he knew our training our money lending if you haven't heard that raja an ad that they can imagine life that then they weren't that they agreed to the rebate to every fan the prophet of the ferry there have gone back to the government after they did that that the price for that in the form of government banking even out innovate and director of the more direct things we actually matched by the veterans for that that or what's the message you'd like to leave our listeners

we've had for three hundred years two competing making them publicly on them an apartment that the original victims of the american colonists with publicly owned money and that with a brilliant thing and the privately owned them is a pyramid scheme the profit for ali enough to pop and not mean that because they fit the principle that they don't get into that very few pay off their loan from big mr have to be going into debt further into that point and we ran added that if the whole world of knowing that their that the company and the terrified to go after the fact that we have to fight back publicly owned bank and credit and money gathering at them and that the underwear or i repeated that he did that or were going in to an authoritarian oligarchy call potential aggression from abroad from an

international cartel of finance years will thanks so much for being here on we have just been listening to arthur allen brown speak about the growing movement for publicly owned banks for more information check on the web at davi davi davi a dutch public dash banking dot com again that's public edge thinking dotcom the sustainability segment of mind over matters program you just heard will be on the streaming archives section of kd excuse website anne cady expiate out or achieve for the next fourteen days i'm diane warren thanks for listening and be sure to turn into the sustainability segment again next week a ninety point three of them and gst battle it