Wisconsin Broken Except for $67 Billion...

Discussion in 'Politics' started by georgephillip, Mar 12, 2011.

  1. georgephillip
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    georgephillip Gold Member Supporting Member

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    "We're broke. Like nearly every other state across the country, we don't have any more money."

    So says Scott Walker who says there is no alternative to state employees contributing more to the cost of their own pensions.

    "Fortunately, there is another alternative.

    "Wisconsin could draw down the ($67 billion pension) fund by the small amount needed to meet pension obligations, and put the bulk of the money to work creating jobs, helping local businesses, and increasing tax revenues for the state.

    "It could do this by forming its own bank, following the lead of North Dakota, the only state to have its own bank — and the only state to escape the credit crisis.

    "This could be done without spending the pension fund money or lending it. The funds would just be shifted from one form of investment to another (equity in a bank).

    "When a bank makes a loan, neither the bank’s own capital nor its customers’ demand deposits are actually lent to borrowers.

    "As observed on the Dallas Federal Reserve’s website, 'Banks actually create money when they lend it.' They simply extend accounting-entry bank credit, which is extinguished when the loan is repaid.

    "Creating this sort of credit-money is a privilege available only to banks, but states can tap into that privilege by owning a bank."

    Does anyone think Scott Walker will take on Wall Street banks or his pal David Koch?

    Maybe the next governor of Wisconsin will?
     
    Last edited: Mar 12, 2011
  2. Mini 14
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    Mini 14 Senior Member

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    That's your only hope now.
     
  3. georgephillip
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    georgephillip Gold Member Supporting Member

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    State banks could provide mortgages at 2% interest and credit cards capped at 6%.

    That is something we should all hope for.
     
  4. xsited1
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    xsited1 Agent P

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    I wish every State had its own bank. It's important that a State function independently of the federal government and a State Bank helps achieve that objective.
     
  5. georgephillip
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    georgephillip Gold Member Supporting Member

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    It's worked in North Dakota for nearly a century. (1919)

    They got tired of Wall Street (Railroads) looting their state's economy a crushed the greedy bastards.

    In 2008 a Democratic gubernatorial candidate in Florida, with a PhD in Economics, made the claim a state bank there could reduce and possibly eliminate the need for state and local taxes.

    The last I heard there were about seven states around the country considering forming a state bank.

    webofdebt
     

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