States can Form Banks and Create Money out of NOTHING just like the Fed Does

[peaceandlove]

SOURCE: G. Edward Griffin http://www.realityzone.com/currentperiod.html
States can form banks and create money out of nothing just like the Fed does. N. Dakota has done that and fared well so far. (Editor's note: Creating money from nothing eventually will corrupt and destroy the system no matter if done at federal or state level. Sound money is the only answer.) Huffington Post Posted 2009 June 13 (Cached)

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But Governor, You Can Create Money! Just Form Your Own Bank

Ellen BrownAuthor, "Web of Debt"
Posted: May 26, 2009 03:41 PM

"I understand that these cuts are very painful and they affect real lives. This is the harsh reality and the reality that we face. Sacramento is not Washington -- we cannot print our own money. We can only spend what we have."

- Governor Arnold Schwarzenegger quoted in Time, May 22, 2009

Christmas comes early, Governor. You can print your own money. Fiscally solvent North Dakota is doing it...and so can California. Now!

Excerpt:

Only three of 50 states are now solvent, meaning they have the revenues to meet their state budgets; and one of them is North Dakota. It is an unlikely candidate for the distinction. It is a sparsely populated state of fewer than 700,000 people, largely located in isolated farming communities afflicted with cold weather. Yet since 2000, the state's GNP has grown 56%, personal income has grown 43%, and wages have grown 34%. The state not only has no funding issues, but this year it actually has a budget surplus of $1.2 billion, the largest it has ever had.

North Dakota boasts the only state-owned bank in the nation. The Bank of North Dakota (BND) was established by the state legislature in 1919 specifically to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men. The bank's stated mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota. By law, the state must deposit all its funds in the bank, which pays a competitive interest rate to the state treasurer. The state rather than the FDIC guarantees the bank's deposits, which are plowed back into the state in the form of loans. The bank's return on equity is about 25%, and it pays a hefty dividend to the state, which is expected to exceed $60 million this year. In the last decade, the BND has turned back a third of a trillion dollars to the state's general fund, offsetting taxes. The former president of the BND is now the state's governor.

Continues: http://www.huffingtonpost.com/ellen-..._b_207806.html


WOW, I just noticed this is thread number 999 under Economy and Currency, those are my numerology numbers for my name.