The Silent Liquidity Squeeze

Ellen Brown, Truthout: "Whether by accident or design, federal policymakers still have not got it right. While we are waiting for them to figure it out, states can nurture and protect their own local economies with publicly owned banks, on the model of the Bank of North Dakota (BND). Currently the nation's only state-owned bank, the BND services the liquidity needs of local banks and keeps credit flowing in the state. Fourteen states have now initiated bills to establish state-owned banks or to study their feasibility. Besides serving local lending needs, state-owned banks can provide cash-strapped states with new revenues, obviating the need to raise taxes, slash services or sell off public assets."