Send a Tweet
Most Popular Choices
Poll Analyses
Share on Facebook 37 Share on Twitter 6 Printer Friendly Page More Sharing
OpEdNews Op Eds    H4'ed 3/26/20

Socialism at Its Finest after Fed's Bazooka Fails

By       (Page 3 of 3 pages) Become a premium member to see this article and all articles as one long page. (View How Many People Read This)   7 comments
Author 7471
Follow Me on Twitter     Message Ellen Brown
Become a Fan
  (208 fans)

Concerning the banks, the Fed could do as the People's Bank of China is doing in this crisis. The state-run PBoC is giving regional banks $79 billion in stimulus money, but it is on condition that they lend it to small and medium enterprises and forgive late payments, so that economic damage is reversed and production can recover quickly.

Another model worth studying is that of Germany, which also has a strong public banking system. As part of a package for coronavirus aid that the German finance minister calls its "big bazooka," the government is offering immediate access to loans up to €500,000 for small businesses through its public bank, the KfW (Kreditanstalt fuer Wiederaufbau), administered through the publicly-owned Sparkassen and other local banks. The loans are being made available at an interest rate as low as 1%, with interest only for the first two years.

Contrast that to the aid package President Trump announced last week, which will authorize the Small Business Administration to offer business loans. After a lengthy process of approval by state authorities, the loans can be obtained at an interest rate of 3.75% nearly 4 times the KfW rate. German and Chinese public banks are able to offer rock-bottom interest rates because they have cut out private middlemen and are not driven by the insatiable demand for shareholder profits. They can lend counter-cyclically to avoid booms and busts while supporting the economy as a whole.

The U.S., too, could create a network of publicly-owned banks backed by the central bank, which could lend into their communities at below-market rates. And this is the time to do it. Times of crisis are when change happens. When the Covid-19 scare has passed, we will have a different government, a different economy and a different financial system. We need to make sure that what we get is an upgrade that works for everyone.

Next Page  1  |  2  |  3

 

Must Read 8   Well Said 4   Valuable 4  
Rate It | View Ratings

Ellen Brown Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

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...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

It's the Derivatives, Stupid! Why Fannie, Freddie and AIG Had to Be Bailed Out

Mysterious Prison Buses in the Desert

LANDMARK DECISION PROMISES MASSIVE RELIEF FOR HOMEOWNERS AND TROUBLE FOR BANKS

Libya: All About Oil, or All About Central Banking?

Borrowing from Peter to Pay Paul: The Wall Street Ponzi Scheme Called Fractional Reserve Banking

"Oops, We Meant $7 TRILLION!" What Hank and Ben Are Up to and How They Plan to Pay for It All

Comments Image Post Article Comment and Rate This Article

These discussions are not moderated. We rely on users to police themselves, and flag inappropriate comments and behavior. In accordance with our Guidelines and Policies, we reserve the right to remove any post at any time for any reason, and will restrict access of registered users who repeatedly violate our terms.

  • OpEdNews welcomes lively, CIVIL discourse. Personal attacks and/or hate speech are not tolerated and may result in banning.
  • Comments should relate to the content above. Irrelevant, off-topic comments are a distraction, and will be removed.
  • By submitting this comment, you agree to all OpEdNews rules, guidelines and policies.
          

Comment Here:   


You can enter 2000 characters. To remove limit, please click here.

Please login or register. Afterwards, your comment will be published.
 

Username
Password

Forgot your password? Click here and we will send an email to the address you used when you registered.
First Name
Last Name

I am at least 16 years of age
(make sure username & password are filled in. Note that username must be an email address.)

6 people are discussing this page, with 7 comments  Post Comment


Don Smith

Become a Fan (Member since Feb 25, 2009), 22 fans, 146 articles, 599 quicklinks, 1921 comments, 45 diaries (How many times has this commenter been recommended?)
Facebook page url on login Profile not filled in Twitter page url on login Profile not filled in Linkedin page url on login Profile not filled in Instagram page url on login Profile not filled in

  New Content

Brown writes with authority. I never completely understand the financial details.

Submitted on Thursday, Mar 26, 2020 at 1:52:55 AM

Author 0
Add New Comment
  Recommend  (3+)
Help

Lance Ciepiela

Become a Fan
Author 14196
Follow Me on Twitter (Member since Apr 4, 2008), 53 fans, 58 articles, 186 quicklinks, 4921 comments, 214 diaries (How many times has this commenter been recommended?)
Facebook page url on login Profile not filled in Twitter page url on login Profile not filled in Linkedin page url on login Profile not filled in Instagram page url on login Profile not filled in

  New Content

'Of course, besides taking the required measures to prevent the virus crisis from spreading and preventing panics, governments must take, on the economic and financial fronts, some fiscal, regulatory and monetary steps to prevent a deflationary downward spiral of economic activity and to stabilize the financial system'. #DebtJubilee. #NationaliseTheFed? - the national 'debt would be cancelled as it becomes a bookkeeping entry with nationalization'.

Submitted on Thursday, Mar 26, 2020 at 2:08:37 AM

Author 0
Add New Comment
  Recommend  (1+)
Help

molly cruz

Become a Fan
Author 7804
(Member since Sep 16, 2007), 15 fans, 17 articles, 655 quicklinks, 2941 comments, 14 diaries (How many times has this commenter been recommended?)
Facebook page url on login Profile not filled in Twitter page url on login Profile not filled in Linkedin page url on login Profile not filled in Instagram page url on login Profile not filled in

  New Content

If we are a body, and money is our blood, it is only functional when it is moving around. When money is hoarded, channeled exclusively to particular parts of the body, it pools and creates something akin to elephantiasis, swollen useless body parts that eventually lead to the death of the body.

When the wealthy, who seem to be angling for special support along with those truly in need, exhibit ignorance of the larger truth: that they need the struggling lower classes to survive, they work against the health of the whole body.

Put a rubber band around your wrist and see how long your hand lasts. The kind of perspective needed to understand what a society is, and what part the circulation of wealth plays in its health isn't given to everybody. We must listen to the cool heads that prevail, those that don't have a dog in the race to see who has the most yachts; before the body sickens and dies of one of the seven deadlies: greed.

Greed is the illusion that we are separate entities, and the basis of vanity. We want to be more than scum on a ball. But if we don't get back for a good look at the beautiful blue marble we merely decorate, we lose that perspective, and our footing along with it.

Submitted on Thursday, Mar 26, 2020 at 2:21:20 AM

Author 0
Add New Comment
  Recommend  (9+)
Help
Indent

Ellen Brown

Become a Fan
Author 7471
Follow Me on Twitter
(Member since Aug 26, 2007), 208 fans, 275 articles, 2 quicklinks, 518 comments, 4 diaries (How many times has this commenter been recommended?)
Not paid member and Facebook page url on login Profile not filled in Not paid member and Twitter page url on login Profile not filled in Not paid member and Linkedin page url on login Profile not filled in Not paid member and Instagram page url on login Profile not filled in

Reply to molly cruz:   New Content

Reminds me of what's happening with the hording of goods. Suddenly there isn't enough toilet paper, milk, eggs, etc. But the stores are still open. If everyone just took what they needed, all would be well. It's the same with our financialized money system. There are huge stagnant pools of money off the market not being used.

Submitted on Thursday, Mar 26, 2020 at 6:13:40 PM

Author 0
Add New Comment
  Recommend  (4+)
Help

911TRUTH

Become a Fan
Author 15356
(Member since Apr 29, 2008), 26 fans, 3063 comments (How many times has this commenter been recommended?)
Facebook page url on login Profile not filled in Twitter page url on login Profile not filled in Linkedin page url on login Profile not filled in Instagram page url on login Profile not filled in

  New Content

Corporate bailout after bailout, yet they keep telling us there's no money for universal healthcare, tuition, etc.

I call "BS!"

Submitted on Thursday, Mar 26, 2020 at 4:40:26 PM

Author 0
Add New Comment
  Recommend  (4+)
Help

Alexander Kershaw

Become a Fan
Author 500827
(Member since Nov 25, 2014), 3 fans, 423 comments (How many times has this commenter been recommended?)
Not paid member and Facebook page url on login Profile not filled in Not paid member and Twitter page url on login Profile not filled in Not paid member and Linkedin page url on login Profile not filled in Not paid member and Instagram page url on login Profile not filled in

  New Content

The next logical step is to sell the failed businesses to the employees. That should have been done with GM. There are many ways that can be done.

Submitted on Thursday, Mar 26, 2020 at 5:25:08 PM

Author 0
Add New Comment
  Recommend  (2+)
Help
Indent

Ellen Brown

Become a Fan
Author 7471
Follow Me on Twitter
(Member since Aug 26, 2007), 208 fans, 275 articles, 2 quicklinks, 518 comments, 4 diaries (How many times has this commenter been recommended?)
Not paid member and Facebook page url on login Profile not filled in Not paid member and Twitter page url on login Profile not filled in Not paid member and Linkedin page url on login Profile not filled in Not paid member and Instagram page url on login Profile not filled in

Reply to Alexander Kershaw:   New Content

Good idea.

Submitted on Thursday, Mar 26, 2020 at 6:10:37 PM

Author 0
Add New Comment
  Recommend  (0+)
Help

 
Want to post your own comment on this Article? Post Comment