Imagine this: because banks legally create credit out of nothing rather than “lend money,” a public bank on one computer could fully fund local schools by creating a “loan” to fund their entire school-year expenses with an interest rate of -100%, with the loan due within ten seconds of the district superintendent signing the document.
If you don’t know, better read the first link above.
What happens: a 100% negative interest rate means the so-called “loan” is self-paying. In this example, after ten seconds the loan is extinguished, and the public bank is again fully capable of extending more credit.
And yeah, it’s legal for banks to set whatever interest rate they choose.
The point is this: creating credit and money is a public benefit that can and should create no long-term debt, full-employment, the best infrastructure we can imagine, and because infrastructure contributes more to economic output than cost of inputs, we also have falling prices. The difference between credit and money (only lawful to create at the federal level of government) is just a negative sign and positive sign on a computer, and both can work as money. The amount of what we use for money should be managed transparently so the value is as we wish.
In contrast, we have debt-based “money” created by private corporations to maximize their own profit while creating increasing and unpayable debt. It’s massive criminal fraud of our 1% in government, money, and media that our current system is “good” for us, compared with public banking benefits.
- easy to understand and self-evident upon inspection
- easy to implement
- would improve our economy amazingly quickly and thoroughly
- State budget deficits end as state-owned banks create at-cost credit. The US has only one state with increasing budget surpluses: the only one with a state-owned bank.
- Trillions in taxpayer surpluses are returned from documented government CAFRs (Comprehensive Annual Financial Report) as at-cost credit replaces rainy-day funds.
- Truth in banking opens debt-free money: US national debt is ended forever, and we have full employment for the best infrastructure we can imagine (documentation here, here, here).
- Truth in banking and money can open truth everywhere: unlawful US wars can end, poverty can end, trillions of more dollars returned in the broader economy, and even truth from corporate media.