Topic: Public Bank

Ellen Brown, founder of the Public Banking Institute and author of Banking on the People, returns to discuss alternatives to the current debt-based financial system. The conversation highlights the struggle of individuals trapped by high-interest student loans and credit card debt within a system designed for corporate profit. Brown's work focuses on democratizing money and creating a banking infrastructure that serves the public interest rather than private shareholders.

The Democracy Collaborative and the Public Banking Institute are working to establish a national public banking framework to eliminate "too big to fail" institutions. Despite over 25 active bills in states like California and New York, significant roadblocks remain, including the need for Federal Reserve backing. Current laws, such as the Federal Reserve Act, prevent the government from creating money directly when it spends, a point of contention within Modern Monetary Theory.

Ellen Brown discusses the ongoing work of the Public Banking Institute, which provides research and resources for local communities looking to organize. She notes the intersection between the banking cartel and the pharmaceutical industry, which led her to shift her writing from medical health to economic reform. Her articles appear on platforms like Truthdig, and her books are available through major retailers for those seeking to understand these complex systems.

The assassination of Julius Caesar in 44 BC is attributed to his attempt to bypass the Roman money changers by having the state issue its own currency. By funding public infrastructure and distributing wealth through state-controlled money, Caesar threatened the monopoly of the private banking class. Following his death, the Roman senators restored the power of the bankers, which led to a concentration of wealth and eventual widespread poverty.

Paul Hellyer proposes the abolition of the Federal Reserve and the establishment of a publicly owned bank in the United States to combat austerity. He suggests the President could use the legal authority to mint high-value platinum coins to inject liquidity into the economy and fund infrastructure. These measures are presented as essential steps to reverse the "Ponzi scheme" of the current global financial system.

Greg Carlwood introduces the episode's focus on domestic and global economic corruption. He addresses listener feedback regarding government overreach, arguing that participation in the system is necessary to implement alternatives like public banking. Carlwood cites Chattanooga's municipal internet and North Dakota's state-owned bank as successful examples of local participation yielding tangible results against the status quo.

Ellen Brown, founder of the Public Banking Institute, discusses the lack of accountability for major banks following the 2008 financial crisis. She highlights the LIBOR scandal, where international banks colluded to manipulate interest rates affecting $400 trillion in contracts. Brown notes that while the savings and loan crisis of the 1980s resulted in a thousand prison sentences, modern banking executives remain immune to criminal prosecution, with fines being paid by shareholders rather than perpetrators.

Ellen Brown details the success of the Bank of North Dakota, the only state-owned bank in the U.S., which maintained a budget surplus throughout the 2008 crisis. She notes that 40% of banks globally are publicly owned, particularly in BRIC nations and Germany. The German Sparkassen model is praised for its mandate to serve local businesses, proving more profitable and stable than the Wall Street model by focusing on community development rather than speculative gambling.

The discussion explores how new Basel III capital requirements are being used by the European Central Bank to undermine local public banks in Germany and Ireland. Brown distinguishes public banks from credit unions, noting that credit unions lack the capital base and legal authority to handle large public deposits or provide the scale of business lending necessary for job creation. She advocates for treating banking as a public utility to support a functional capitalist model.

Ellen Brown provides her website addresses and book titles, including Web of Debt and The Public Bank Solution, for listeners seeking further education. She encourages participation in the Public Banking Institute to facilitate local political action. Greg Carlwood thanks Brown for her insights into alternative economic solutions and concludes the interview portion of the show.