How we got into it, and how to get out

[Horn]

By Ellen Brown

Countries everywhere are facing debt crises today, precipitated by the credit collapse of 2008. Public services are being slashed and public assets are being sold off, in a futile attempt to balance budgets that can’t be balanced because the money supply itself has shrunk. Governments usually get the blame for excessive spending, but governments did not initiate the crisis. The collapse was in the banking system, and in the credit that it is responsible for creating and sustaining.


Contrary to popular belief, most of our money today is not created by governments. It is created by private banks as loans. The private system of money creation has grown so powerful over the centuries that it has come to dominate governments globally. The system, however, contains the seeds of its own destruction. The source of its power is also a fatal design flaw.


The flaw is that banks advance “bank credit” that must be paid back with interest, while having no obligation to spend the interest they collect so that borrowers can earn it again and again, as they must in order to retire the debt. Instead, this money is invested in various casinos beyond the borrowers’ reach. This leads to a continual systemic need for more new bank credit money, more debt with more interest attached, to prevent widespread defaults and deflationary collapse.


Today this problem is particularly evident in the EU. The Euro is a fixed currency system that does not allow for expansion to meet the demands of the private lending casino. The result is that EU member nations collectively are being crippled by debt.

There are more sustainable ways to run a banking and credit system, as will be shown.


http://print.dailymirror.lk/business/127-local/46378.html

[hoarder]

The way out

To escape the debt trap of the global bankers, the power to create the national money supply needs to be restored to national governments. Alternatives include:

Legal tender issued directly by national treasuries and spent on national budgets.

Publicly-owned central banks empowered to advance the nation’s credit and lend it to the government interest-free.

Nationalization of bankrupt banks considered “too big to fail” (after expunging or writing down bad debts on inflated bubble assets). These banks could then issue credit to the public and serve the public’s banking needs, with the profits recycling back to the government, defraying the tax burden on the people.


That might be the way out of the system but it's not the way out of the debt.
The way out of the debt is pretty easy. Just arrest and incarcerate the banksters, confiscate their assets and sentence them to 100 years hard labor.

[Dogman]

That might be the way out of the system but it's not the way out of the debt.
The way out of the debt is pretty easy. Just arrest and incarcerate the banksters, confiscate their assets and sentence them to 100 years hard labor.

No , No , No ! That is not the way it is done! You sentence them to 100 years plus one year.

[Hatha Sunahara]

To stay out of this, we need to make it mandatory for the public schools to teach people how our money is created. This is just as big a fantasy as putting the bankers on trial.

Hatha

[Twisted Titan]

The flaw is that banks advance “bank credit” that must be paid back with interest, while having no obligation to spend the interest they collect so that borrowers can earn it again and again, as they must in order to retire the debt.

The Flaw is that the banks create the money out of thin air and you have to pledge collateral for 'something that came from nothing". This whole sale rape in legitimized through courts and henchmen with Guns.

[mightymanx]

We got into this by people willfully pissing away their childrens future.

We will get out of this by living out the 21st century version of the French Revolution.

[Horn]

In the United States there is currently only one state-owned bank, the Bank of North Dakota. The model, however, has proven to be highly successful. North Dakota is the only U.S. state to have escaped the credit crisis unscathed. In 2009, while other states floundered, North Dakota had its largest budget surplus ever. In 2008, the Bank of North Dakota (BND) had a return on equity of 25%. North Dakota has the lowest unemployment rate in the country and the lowest default rate on loans. It also has the most local banks per capita.


North Dakota has had its own bank since 1919, when farmers were losing their farms to the Wall Street bankers. They organized, won an election, and passed legislation. The state is required by law to deposit all its revenues in the BND. Like with the sustainable model of the bank of colonialPennsylvania, interest and profits are returned to the government and to the local economy.


A growing movement is afoot in the United States to copy this public banking model in other states. Fourteen U.S. state legislatures have now initiated bills for state-owned banks.


I wonder what kind of actual umpf N.D. gets out of its Bank? Seems like this at least would be a no brainer for the rest to follow.

If the article were a few hundred words shorter i might be able to get some people to read it...