Sustainable Government: Banking for a "New" New Deal

Obama would do well to consider these funding solutions for his “smarter” government.  He has been quick to assemble his advisers and form policy, but a fast start down the wrong road could do more harm than good.  The bailout scheme of the current administration is serving merely to keep a failed banking system alive by draining assets away from the productive economy.  The conventional wisdom is that we must continue down the path we are on, because the alternative means frightening, radical change.  Financing a new New Deal without putting the country further into insolvency, however, would not be a radical departure from tradition but would represent a return to our roots, to the uniquely American monetary policy advocated by our venerable forebears Benjamin Franklin, Thomas Jefferson and Abraham Lincoln.

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1.          Barry Ritholtz, “Bailout Costs More than Marshall Plan, Louisiana Purchase, Moonshot, S & L Bailout, Korean War, New Deal, Iraq War, Vietnam War,”, Global Research (December 2, 2008).

2.          G. Edward Griffin, The Creature from Jekyll Island (Westlake Village, California: American Media, 1998), pages 63, 65.

3.          “William Engdahl, “Financial Tsunami: The End of the World as We Knew It,” Global Research (September 30, 2008).

4.          See Ellen Brown, “The Collapse of a 300 Year Ponzi Scheme,” webofdebt.com/articles, October 16, 2008.    

5.          See “Sustainable Energy Development: How Costs Can Be Cut in Half,” ibid.,  (November 5, 2007).

6.          Chicago Federal Reserve, “Modern Money Mechanics” (1963, updated 1992), originally produced and distributed free by the Public Information Center of the Federal Reserve Bank of Chicago, Chicago, Illinois, now available on the Internet.                       

7.          Mark Pittman, Bob Ivry, “U.S. Pledges $7.7 Trillion to Ease Frozen Credit,” Bloomberg.com (November 25, 2008).

8.          Ellen Brown, “The Fed Now Owns the World’s Largest Insurance Company – But Who Owns the Fed?”, www.webofdebt.com (October 7, 2008); Mark Pittman, et al., “Fed Denies Transparency Aim in Refusal to Disclose,” Bloomberg.com (November 10, 2008).

9.          Tami Luhby, “Credit Crisis Hits Main Street,” CNNMoney.com (February 21, 2008); “Bond Failures May Bankrupt Cities,” Marketplace (February 28, 2008). 

10.        The Bank of North Dakota,” New Rules Project, newrules.org;  “Ag PACE,”  banknd.com  (2007).

11.        Richard Sisson, et al., The American Midwest: An Interpretive Encyclopedia (2007), page 41;  Liz Wheeler, “Bank of North Dakota Keeps Student Loan Funds Flowing,” Northwestern Financial Review, BNET.com (September 15, 2008).