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Mon Aug 13, 2018, 04:42 AM

 

Why Public Banks Are Suddenly Popular

This is going to gain a lot more momentum and will be something which you'll be hearing a lot about in the 2020 election.
We need public owned banks in America. Bad. There has been talk of turning the post Office into public banks "The poor need bank accounts, and USPS has the answer" & this would be serious reform.

Why Public Banks Are Suddenly Popular
There's only one in America—in North Dakota. But a growing movement is pushing for them across America, from L.A. to D.C.

Later this year, on the midterm ballot, voters in Los Angeles, California, will be asked an uncommon question: Should the city be to allowed to create a public bank?

L.A.’s referendum, which would not itself create a public bank, has attracted the support of left-wing figures like New York congressional candidate Alexandria Ocasio-Cortez and filmmaker Michael Moore, in addition to advocates for legalized cannabis. And the idea is gaining traction to other blue cities and states. New Jersey’s Democratic governor, Phil Murphy, campaigned on the creation of a public bank. City officials in Washington, D.C., held a public meeting last month to discuss the possibility. The movement has also spread to New York City and Oakland.

A public bank is what it sounds like: a financial institution owned by the government, funded with taxpayer money, and directly accountable to elected officials and civil servants. For this reason, supporters believe they offer a transparent alternative to private banks like Bank of America, which was fined $42 million this year for lying to customers about its management of stock trades, or Wells Fargo, fined $185 million for opening fraudulent accounts for customers without their consent.

But the appeal of public banks extends beyond consumer protection to sound fiscal policy. The argument, as articulated by Demos in a 2011 report, says banks can offer lower debt costs to city and state governments, fund public infrastructure projects, and encourage entrepreneurship by providing loans to small businesses at lower interest rates and with lower fees.

“It’s a way to keep our money here as opposed to holding it in these large Wall Street banks that we pay egregious interest and financial fees to,” Kayvan Khalatbari, a mayoral candidate in Denver, told Westword. “This is not a new idea, these exist all over the world. Germany is fueled by public banks, and look, they have the best economy in Europe.”

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Reply Why Public Banks Are Suddenly Popular (Original post)
SkyDancer Aug 2018 OP
TreasonousBastard Aug 2018 #1
WePurrsevere Aug 2018 #5
bottomofthehill Aug 2018 #8
Ferrets are Cool Aug 2018 #9
oberliner Aug 2018 #2
SkyDancer Aug 2018 #4
TreasonousBastard Aug 2018 #10
LittleGirl Aug 2018 #3
rpannier Aug 2018 #6
Omaha Steve Aug 2018 #7

Response to SkyDancer (Original post)

Mon Aug 13, 2018, 05:27 AM

1. Don't forget about credit unions.

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Response to TreasonousBastard (Reply #1)

Mon Aug 13, 2018, 06:11 AM

5. This was my first thought as well. We belong to two...

My first checking account was 40 or so years ago at a teacher's credit union thanks to my (step) mom being a teacher. I've tried conventional banks but hated them. Credit unions are increasingly open to the general public, perfect for the poor to use and those that run the CUs can be held accountable by the CU's account holders if they use the power of their vote.

This said I'm not against the idea of public banks. They sound very similar but it sounds like there are added bonuses for the public good.

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Response to TreasonousBastard (Reply #1)

Mon Aug 13, 2018, 07:01 AM

8. I love my credit union

I have not had a bank account in years. The fees were getting crazy. I only have credit union accounts now and have never had a problem with them

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Response to TreasonousBastard (Reply #1)

Mon Aug 13, 2018, 07:22 AM

9. Love my credit union.

Been a member for 30 years.

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Response to SkyDancer (Original post)

Mon Aug 13, 2018, 05:40 AM

2. Bernie has been talking about this for a while

 

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Response to oberliner (Reply #2)

Mon Aug 13, 2018, 05:50 AM

4. Yes he sure has

 

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Response to oberliner (Reply #2)

Mon Aug 13, 2018, 07:42 AM

10. Not exactly a new idea...

https://about.usps.com/publications/pub100/pub100_025.htm


An Act of Congress of June 25, 1910, established the Postal Savings System in designated Post Offices, effective January 1, 1911. The legislation aimed to get money out of hiding, attract the savings of immigrants accustomed to saving at Post Offices in their native countries, provide safe depositories for people who had lost confidence in banks, and furnish more convenient depositories for working people.

The system paid two percent interest per year. Initially, the minimum deposit was $1, and the balance in an account could not exceed $500, excluding interest.

Deposits were slow at first, but by 1929, $153 million was on deposit. Savings spurted to $1.2 billion during the 1930s and jumped again during World War II, peaking in 1947 at almost $3.4 billion.

After the war, banks raised their interest rates and began offering the same governmental guarantee as the Postal Savings System. In addition, United States savings bonds gave higher interest rates. Deposits in the Postal Savings System declined, dropping to $416 million by 1964.

On April 27, 1966, the Post Office Department stopped accepting deposits to existing accounts, refused to open new accounts, and cut off interest payments as the annual anniversary date of existing accounts came up. When the system ended officially July 1, 1967, about $50 million in the unclaimed deposits of more than 600,000 depositors was turned over to the U.S. Treasury Department to be held in trust indefinitely.

An Act of August 13, 1971, authorized the Treasury to turn over the money on deposit to various states and jurisdictions, each sharing proportionately based on its own deposits. Some money was kept for future claims, but under the Postal Savings System Statute of Limitations Act of July 13, 1984 (Public Law 98-359), no claims could be brought more than one year after enactment. Thus, no claims made after July 13, 1985, have been honored.

The above Statute of Limitations applies only to certificates. Postal savings stamps and postal savings bonds can be redeemed by sending them to the Bureau of the Public Debt, Post Office Box 426, Parkersburg, WV 26106-0426.



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Response to SkyDancer (Original post)

Mon Aug 13, 2018, 05:46 AM

3. We bank with the post office

here in Switzerland. It was the only bank besides UBS that would take us as Americans citizens. Other banks here flat refuse to open accounts for Americans because of the IRS disclosure that is required. We're small potatoes bankers that need cash for groceries and small things. Most places take cards now but it wasn't like that 5 yrs ago.

This is the best way to bank and it will work in the states. There are branches everywhere and ATMs even in small towns. Fees are fair.

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Response to SkyDancer (Original post)

Mon Aug 13, 2018, 06:56 AM

6. The Post Office in Korea does banking

No fees on withdrawals, even if you do not bank with them

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Response to SkyDancer (Original post)

Mon Aug 13, 2018, 06:59 AM

7. K&R!


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