Small Businesses and Local Public Banks:
The problem of deposits, and the public bank solution.
The data associated with the chart above reflects the existing state of economic affairs, as year after year, and in the last 30 years our city, county, and state governments have LOANED over $35 TRILLION dollars to the privately owned monopoly banks responsible for the asset bubbles, small bank failures, boom/bust cycles, and run-away inflation. You know their names (hint: jpmcboaciti.etal)
The image to the right illustrates ONLY what $1 TRILLION dollars looks like in $100 Dollar bills.
If we were to illustrate the $35 TRILLION DOLLARS loaned to the TBTF Wall Street banks since 1994, in One Dollar Bills, you’d have to multiply the size of the enormous stacks to the right by 3500 times! An incomprehensible number.
The height of this pile of money would reach 28,000 feet, just short of the height of Mount Everest!
Every dollar of this incomprehensible sum has been loaned to the private monopoly banks by your city, county, and state governments since 1994.
And the evidence is abundantly clear, that the Big Banks, the TBTF banks, prefer to lend to big corporations, creating asset bubbles, and building monopolies in every sector of the economy.
There is a Better Way: Local Public Banks
Unlike the big banks, small banks loan to small firms, and medium banks to medium-sized enterprises. By partnering with local community banks and credit unions, a city public bank will help finance local small businesses while also shoring up the local financial institutions.
So, when the taxes you pay are deposited by your governments in a Public Bank owned by your city, county, or state, and chartered to reinvest that money only in the local community (the “Regional Principle”), a dynamic economic engine is created that multiplies our wealth many times, financing local SMEs (Small & Medium sized Enterprises) for the development of new services and new technologies.
No inflation occurs as money is used to increase value-added products and services that boost the local GDP.
It was difficult to find the precise numbers, but a conservative estimate is that more than 95% of all the taxes collected by state, county, and city governments are “deposited” in the privately owned TBTF (toobigtofail) banks on Wall Street. This study by FRED (click chart to left) will illustrate the staggering proportions of public taxpayer largess to a private banking cartel often masquerading as a public institution.
Let’s do some math to see how much money our governments have ‘loaned’ to the TBTF banks, shall we?
For the combined revenue from state, county, and city governments:
In 2023 $2.04 TRILLION were loaned to the TBTF banks
Between 2014 and 2023 $15.9 TRILLION were loaned to Wall St.
In the last 20 years $27.9 TRILLION were loaned to JPMCBOACITIetal
Since 1994 $35.8 TRILLION in public tax money were loaned by our State, County, & City governments to the TBTF monopoly banks.
Source: FRED (Federal Reserve Economic Database)
