California Dreaming: Create a State Bank and Eliminate the Debt!
  • Petitioning California Governor

This petition will be delivered to:

California Governor
California State Senate
California State House

California Dreaming: Create a State Bank and Eliminate the Debt!

    1. Scott Baker
    2. Petition by

      Scott Baker

      New York City, NY

To balance its budget, fund its obligations and keep from having to raise taxes, California should follow the model of North Dakota and Charter its own state bank. 

North Dakota has had a state bank, which by charter, must contain all the state's funds, and which, public-banking advocate and author Ellen Brown tells us, "was established by the legislature in 1919 to free farmers and small businessmen from the clutches of out-of-state bankers and railroad men."  The bank has met its purpose fabulously. Today, North Dakota is running its biggest surplus in its history. 

Ellen Brown, who is running for Treasurer in 2014 - http://www.newmenu.org/ellenbrown - found $76B in a "Rainy Day" fund maintained by the Treasurer's Office.  It's time to tell the Treasurer of California, which has over a $26B deficit, that it is raining...or replace him!

Bank capital reserve requirements are only 8%.  If California used 8% as a baseline, then the state could deposit its expected $128 billion in revenues this year into the state bank, and still have over 100 billion to loan out as new loans created under fractional reserve rules!  Beyond that, there are hundreds of billions in state and municipal agency and pension funds, which are often providing insufficient returns to support those dependent on them. The 2009 Comprehensive Annual Financial Report, lists the following fiduciary assets:

Total investments (including short-term, equity, Debt securities, Real Estate, Other, Securities lending collateral): $357,080,094,000

Even after liabilities, there would be over $300 Billion left in net assets overall.  If California shifted a portion of that to a State Bank, which would invest only in in-state, non-securitized, non-derivatized, loans, it could provide infrastructure loans to create jobs and new tax revenues that would add to the state coffers, more than would be removed by a State Bank (if you don't believe banks can contribute more to wealth than they take out, even with reasonable interest, then why have banks at all?  No, true wealth is created by labor acting upon the natural resources of the world, facilitated by capital and money which can come from a bank).  The new wealth provided by a State Bank would easily offset a slight rise in taxes to pay directly for pension and other obligations.

The state's existing banks would howl.  Let them.  They set the fractional reserve rules, now they have to play by them.  Besides, who do you trust more to fund a bank: the depositors and borrowers of the Wells Fargos of California, or the citizens of the state who must pay taxes every year

California has never defaulted on its obligations; Wells Fargo needed bailout money.

If this new state bank – which could operate as a non-profit, with no shareholders to please – were to distribute its fund to the state's smaller banks, in order to issue new loans to strapped homeowners at, say an inflation-realistic rate of 3%, still far below current bank rates of over 5% on 30-year mortgages, they could refinance defaulting homeowners, fund start-ups, and even fund general government expenditures, all without paying a dime in interest to private bankers!

Newly elected Governor Jerry Brown must balance the budget under the state constitution.  But, there is another option besides crippling taxes and devastating spending cuts.  There is a way to balance the budget, create a surplus, and tell the high interest charging banks that Governor Brown still has creative ideas for the Land of Dreams!

CREATE A STATE BANK IN CALIFORNIA!

Recent signatures

    News

    1. Ellen Brown running for Treasurer on Public Bank Platform

      Scott Baker
      Petition Organizer

      Ellen Brown, who is running for Treasurer in 2014 - http://www.newmenu.org/ellenbrown - found $76B in a "Rainy Day" fund maintained by the Treasurer's Office. It's time to tell the Treasurer of California, which has over a $26B deficit, that it is raining...or replace him! Vote for Ellen Brown on the Green Party ticket in the primaries. It is a winner-take-all primary, so it is essential to vote if you truly want to change the direction of the state. And remember, if California can get its own Public Bank, any state can, and will!

      Ellen Brown Treasurer - California 2014 Green Party

      This is the directory listing for Ellen Brown running in the Green Party for Treasurer in California

    2. Reached 250 signatures
    3. Contact Jerry Brown - a New Bill Still Video

      Scott Baker
      Petition Organizer

      Economics investigator Bill Still has made a short video urging people to contact Gov. Brown to pass AB750. Watch it and then call!

    4. Tell the Governor to sign AB750!

      Scott Baker
      Petition Organizer

      You can contact Governor Brown's office to urge him to sign AB 750 by writing or calling:
      Governor Jerry Brown
      c/o State Capitol, Suite 1173
      Sacramento, CA 95814
      Phone: (916) 445-2841 begin_of_the_skype_highlighting (916) 445-2841

    5. AB 750 got passed by the Senate Appropriations Committee this evening

      Scott Baker
      Petition Organizer

      AB 750 got passed by the Senate Appropriations Committee this evening, was
      just now voted on (24-15 in favor), and goes to the Assembly floor for
      concurrence tomorrow. Will likely be on the Gov's desk in the afternoon!!!

    6. AB 750 got passed by the Senate Appropriations Committee this evening

      Scott Baker
      Petition Organizer

      AB 750 got passed by the Senate Appropriations Committee this evening, was
      just now voted on (24-15 in favor), and goes to the Assembly floor for
      concurrence tomorrow. Will likely be on the Gov's desk in the afternoon!!!

    7. AB 750 - Voted out of Senate Banking and Finance Committee

      Scott Baker
      Petition Organizer

      On Wednesday afternoon, July 6th, the Senate Banking and Finance Committee moved AB 750 forward to the Senate Appropriations Committee.

    8. Scott Baker
      Petition Organizer

      From Assemblyman Hueso's office: "....AB 750 has made it out of
      Appropriations Committee...The bill will be heard on the Floor by Wednesday
      or Thursday of next week. I will be in touch with you then to provide
      additional details."

      Then on to the Senate!!

    9. Reached 100 signatures

    Supporters

    Reasons for signing

    • James Sylvester SUN CITY, CA
      • 20 days ago

      The private banks are criminal organizations!

      REPORT THIS COMMENT:
    • Christine Wallace LAS VEGAS, NV
      • 4 months ago

      I've been looking for a worthy bank in Nevada to move my money after being scammed out of more than $20K by my mortgage lender. I intend to petition Nevada lawmakers to do the same. Today, more than 98% of homeowners in Las Vegas are still seriously underwater on their homes and 1 in 7 homes are still in the foreclosure mill. Somehow the millions of victims not only need justice, but need a trustworthy bank to keep what little money they have left after being robbed by the criminal enterprises known as "too big to fail banks".

      REPORT THIS COMMENT:
    • Gail Metcalf CITRUS HEIGHTS, CA
      • 5 months ago

      The states need to retain their original independence from the federal government. I want to protect the money I have and don't want the federal government having access to it.

      REPORT THIS COMMENT:
    • Adam Mishcon SAN FRANCISCO, CA
      • 8 months ago

      Better than funding more profits where they are not needed.

      REPORT THIS COMMENT:
    • steven broyles PALO ALTO, CA
      • 8 months ago

      let's enrich ourselves vs. faceless corporations.

      REPORT THIS COMMENT:

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