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THE GLOBAL DEBT CRISIS: HOW WE GOT IN IT AND HOW TO GET OUT

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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.

The model could also be replicated in other countries.   In Ireland, for example, where the major banks are insolvent and are already nationalized or soon will be, the government could deposit its revenues in its own publicly-owned banks, add sufficient capital to meet capital requirements, and leverage these funds to create interest-free credit for its own local needs.   That is exactly what Alexander Hamilton did when faced with government debts that were impossible to repay: he put the government's existing funds in a bank, then borrowed the money back several times over, employing the accepted "fractional reserve" model.  

Japan's solution is also a variant of what Alexander Hamilton proposed two centuries earlier.   Japan retains its status as the third largest economy in the world although it has a debt to GDP ratio of 226%.   Japan has "monetized" the national debt, turning it into the national money supply.   The government-owned Bank of Japan holds Japanese government debt equal to 100% of the nation's GDP; and because the government owns the bank, this loan is interest-free and can be rolled over indefinitely.   An interest-free loan rolled over indefinitely is the equivalent of issuing money.   

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Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling WEB OF DEBT. In THE PUBLIC BANK SOLUTION, her latest book, she explores successful public banking models historically and (more...)
 
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Well done once again Ms. Brown.  Thank you. ... by Robert Tracey on Tuesday, Jun 7, 2011 at 3:21:13 PM
Thanks Robert!  I am trying to write another ... by Ellen Brown on Tuesday, Jun 7, 2011 at 3:31:24 PM
When Federal Reserve prints banknotes, how are the... by BFalcon on Thursday, Jun 9, 2011 at 2:57:05 AM
I started one too, and never finished either. Sti... by Robert Tracey on Thursday, Jun 9, 2011 at 2:27:59 PM
Nice overview, Ellen Brown.   You show us wh... by Ernie Messerschmidt on Tuesday, Jun 7, 2011 at 9:58:03 PM
The banks have found new ways of extracting wealth... by Bernard on Wednesday, Jun 8, 2011 at 7:48:37 AM
Very well put, thanks!  Could you be more spe... by Ellen Brown on Wednesday, Jun 8, 2011 at 8:38:52 AM
This analysis seems correct to me. The banks have ... by Ernie Messerschmidt on Wednesday, Jun 8, 2011 at 9:22:25 AM
Are the banks creating more money out of nothing? ... by Terry Hnanicek on Wednesday, Jun 8, 2011 at 5:24:04 PM
  What you saying here, Ellen, is that banks ... by Terry Hnanicek on Wednesday, Jun 8, 2011 at 5:10:35 PM
Hi, I'm looking for the Grignon clip.  What's... by Ellen Brown on Wednesday, Jun 8, 2011 at 7:11:35 PM
it is sub titled in a foreign language but the aud... by nativenezperce on Wednesday, Jun 8, 2011 at 8:28:44 PM
thanks.  No I think he was referring to somet... by Ellen Brown on Wednesday, Jun 8, 2011 at 10:26:29 PM
my bad thought it was the link you were looking fo... by nativenezperce on Wednesday, Jun 8, 2011 at 10:39:53 PM