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Crushing the States, Saving the Banks: The Fed’s Generous New Rules

Originally published at http://www.commondreams.org/views/2020/05/03/crushing-states-saving-banks-feds-generous-new-rules

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While this is a fine stop-gap measure to blunt some of the impacts of the oligarchs’ attempt to destroy the country, it does little to actually fund government. It also perpetuates the legitimacy of an inherently devious and corrupt system where money is created by banks rather than by the people through their government.

One correction to the article. The sentence " Since there is no longer a deposit requirement, it need not worry if these revenues get withdrawn and spent." implies that banks lend depositors’ money - clearly this is a false concept that should not be promulgated. Banks, public or not, create money and determine who are the creditworthy, worthy of obtaining that money. It will always, by definition, be those who already have money.

We are witnessing phase 4 of the Wall Street enhancement program initiated when Congress put US taxpayers on the hook for $20 trillion in bankster bailout schemes in the aftermath of the 2008 crash, followed by Dodd-Frank 90% of which gave banksters a playing field slanted heavily in their favor going forward, 10% was consumer protections. In phase 3 the consumer protection 10% of Dodd-Frank was dismantled during the first year of the Trump regime, the 90% favoring the banksters was retained.

As a result, the too big to fail banks that controlled 25% of US bank assets when they crashed the economy in 2008, controlled 50% when Obama left office while continuing to march toward monopoly.

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Write, call or visit local and state governments and see if they are aware of public banking. Look to see if there is a public banking advocacy group in your area. Money is the blood of government. Public banking can cure decades of neoliberal infermity.

These people aren’t governing us or political leaders, they’re psychopaths with tenure!

I was not aware that the Banks in the USA only dropped their credit cart rates by .5 percent. The big 5 In Canada cut the rates of most cards in half to the 11 percent range from 21 percent on the highest rate cards. This was not a legislated change albeit the Government made the suggestion.

~https://www.cbc.ca/news/business/big-six-banks-credit-card-interest-rates-relief-covid-19-1.5522343

Now here is the thing. The Government of Canada indicated it would be looking at this rates and were in discussion with the banks to lower them. The banks did not want Legislation forcing this as they probably feared this would remain after COVID passed.

US Banks remain profitable. The CEOS of the same always brag about this in shareholder meetings.There no reason they could not halve their rates.

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Just so progressives know. Ellen Brown is 100 times better at fighting for mainstreet finances than Elizabeth Warren. AOC and Jayapal might give her a bit of run for that title but Ellen Brown would win out. She supports Medicare for All without hesitation.

Ellen Brown should be our next president.

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Wow! Seems this ought to be heard far & wide. But if I take a sentence from this article and put it in Google and do a search, I only get this article at Common Dreams. So how many people will actually see this important info?? I would share a link at Twitter or Facebook if I had accounts on those 2 social media platforms. Well, I see that underneath the article there are icons for Facebook and Reddit, with Facebook having a 184 on it, and Reddit a 3. So maybe that means 184 Facebook users have shared it which would be great!

Thanks! I have more time than they do to research things!

You make a very good point!