A Public Bank for Mendocino County
This is the second half of a one hour program on how to set up a public bank. Ellen Brown, in her most recent acclaimed books, describes the functioning of the Federal Reserve in “The Web of Debt” and gives a blueprint on how to set up a public bank in her 2013 book: “The Public Bank Solution”. She came to Mendocino County, 100 miles north of San Francisco, to meet with people who already embarked on the path of creating such a county bank. You heard in part ONE of this program that a model for such a public bank exists since 1919 in the Bank of North Dakota(BND).
Maybe the biggest impact comes from the fact that the BND can make loans to fund public works projects instead of using expensive bonds. For example the BND funded a $50 million water treatment project with a loan. Consider that in regard to the debt crisis that affects so many towns and counties today. Ellen Brown used the example of a school district in San Diego, CA. They borrowed money in capital appreciation bonds and will eventually owe nearly $1 billion – or ten times the initial loan.
This program also includes comments from San Francisco Supervisor John Avalos. He is one of the strong proponent of a public bank for that city and gives a comprehensive list of opportunities awarded by such a bank. He was recorded at the June 2013 Public Banking Conference held at the Dominican University in San Rafael, CA.
The economist of sustainable development and author Hazel Henderson wrote in her foreword to Ellen Brown’s “The Public Bank Solution” that this book is about “understanding the politics of money creation, credit allocation and how democracies can and must regain control over today’s global casino.”
This TUC Radio program is a snapshot of the status of public banking at the beginning of 2014.