LordBrownTrout
Diamond Member
He that will not apply new remedies must expect new evils; for time is the greatest innovator.
- Francis Bacon
Time can't hold a candle to Wall Street when it comes to innovating evils. If the citizens of California are serious about economic reform, North Dakota blazed that trail in 1919.
North Dakota is a sparsely populated state of less than 700,000, known for cold weather, isolated farmers and a hit movie Fargo.
"Yet, for some reason it defies the real estate cliché of location, location, location.
"Since 2000, the states GNP has grown 56%, personal income has grown 43%, and wages have grown 34%. This year the state has a budget surplus of $1.2 billion!
"What does the State of North Dakota have that other states dont?
"The answer seems to be: its own bank.
"In fact, North Dakota has the only state-owned bank in the nation.
"The state legislature established the Bank of North Dakota in 1919. Fleetham writes that the bank was set up to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men.
"By law, the state must deposit all its funds in the bank, and the state guarantees its deposits.
"Three elected officials oversee the bank: the governor, the attorney general, and the commissioner of agriculture.
"The banks stated mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota.
"The bank operates as a bankers bank, partnering with private banks to loan money to farmers, real estate developers, schools and small businesses.
"It loans money to students (over 184,000 outstanding loans), and it purchases municipal bonds from public institutions."
Since certified card-carrying banks are allowed to do something nobody else can, i.e., create "credit" with accounting entries, California could solve its solvency problem the next time it goes to the polls.
North Dakota Shows...
Good find. I read about this a few years ago.