Discussion About The Federal Budget and Banking System

Please note: comments that are clearly off-topic, disrespectful, or personal attacks may be deleted.

The Concept of A State Owned Bank -

Can the State of California form its own bank? North Dakota had and The Bank of North Dakota serves as a good model. Facing similar credit conditions to those plaguing the economy today, North Dakota formed its own bank in 1919.

How it works there – State law requires the state to deposit its revenues in its own bank. Those deposits allow North Dakota to use existing bank lending laws to create “new money” in the form of loans to itself, businesses, farmers, students and others, and drive its own economy in the direction it chooses, for example, with 1% loans to farmers. If they can do it, so can other states and the federal government.

Do you think a state owned bank would help cure the financial ills in California? Give us your thoughts.