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A State Bank of Oregon

Posted on Sunday, July 11, 2010 in Political campaign

Using Fractional Reserve Lending, an Oregon State Bank (OSB) would make loans to Oregonians at much lower interest rates than privately owned banks. For $100 in deposits, the OSB can create $900 in new money by making loans. The Oregon State Bank would offer 6 percent credit cards and 6 percent Certificates of Deposit. The OSB can pay 6 percent for CDs to make mortgage and other loans at 2 percent. For $6 per year in interest paid to depositors the OSB can earn $18 by lending $900 at 2 percent!

The state would earn $15,000 per $100,000 of mortgage at a cost of about $1,700, while the homeowner would save $88,000 in interest – and pay for their home 15 years sooner! “This bank will save people about seven years of their income over the course of 30 years, just on interest costs.

The state could earn billions yearly on these loans, while saving hefty sums for consumers. It could also refinance its own debts and those of its municipal governments at very low interest rates. Interest composes 30 percent to 50 percent of everything we buy. Slashing interest costs can make projects such as low-cost housing, alternative energy development, and infrastructure construction not only sustainable, but profitable for the state while at the same time creating much-needed jobs.

I want money completely out of Oregon’s elections and law making. I don’t accept contributions, so the only way I can be elected to do things like this is if you help spread the word to vote for me. That’s not so difficult – just forward my blog to your family and friends. Maybe print off a yard sign too…

Watch Ellen Hogsdon Brown’s State Owned Banks: Fixing the Economy

And How to Abolish the Federal Reserve, a clip from the video “The Money Masters”

Bring on the comments

  1. Bob says:

    How are you going to get the State Legislature to pass something like this when they get their biggest campaign contributions from the guys you are trying to put out of business?

  2. Jerry says:

    Good question. The Answer is by Executive Order. This would not put private banks out of business. It would force them to be more competitive though. That’s a good thing.

  3. Nick says:

    Isn’t Fractional Reserve Lending the very problem on how our current government regime is doing to us now, through the Federal Reserve?

    Just out of curiosity, where and whom did you learn your economics from?

  4. Jerry says:

    Nick, the problem is that the credit (paper money) is being spent on expense items and not invested into capital. That violates banking protocol, if not the law. My experience with banking comes from having worked in them and later, borrowing from them, $25 million one time. They would never have lent that to me if I were going to blow it on nightwatchman’s department expenses, like the United States does. My company brought a Billion dollars in sales through Oregon. I learned my economics through the school of hard knocks. The Wall Street & Federal Reserve crooks learned theirs at Harvard & Yale.

  5. Scott says:

    That guy Nick is exactly right. The very process of fractional reserve banking is and always was fraudulent. It is designed to profit the banking cabal and fund runaway government, all at the expense of the tax paying citizen. It’s no coincidence that the Federal Reserve and the Income Tax laws were passed the same dreadful year of 1913. I would suggest reading the Austrian Economist to fully understand banking and our monetary system. A good start is Murray Rothbard’s excellent book – The Mystery of Banking.

    So the problem is that credit fiat money exists and the government spends so much of it. At least Jerry wants to spend it on something better than wars, the welfare state etc. but real capital comes from real savings. This country is screwed because of the banksters.

    • Jerry says:

      Watch the second film clip linked under my article. It explains exactly how to end fractional reserve lending and why it needs to be done. Fractional Reserve banking could work if it is not abused. Unfortunately, it has been abused with the assistance of an ignorant and corrupted government. This is intolerable. And another reason why we must end government-for-sale.

  6. Scott says:

    Excellent video Jerry! I clearly didn’t take enough time to survey your site and ideas to see you are indeed deeply knowledgable about these most important issues. Jerry forget Oregon and the gubernatorial race, you need to join forces with the great Ron Paul at the Federal level. We are running out of time to restore the Constitutional Republic that was our birthright. That video is exactly what we need to do. I would only disagree with your statement that fractional reserve lending could work if not abused. Unfortunately, history shows it will be abused by the power hungry; just as if you put a jar of candy out for kids with no supervision and expect them not to over due it. I think we need as a race of people to evolve to the point where we legislate that fractional reserve banking is fraud period – just like any other type of warehouse. A monetary system composed of digital gold backed 100% by real gold that is reliably audited while the abolishment of the income tax would be the glorious free market of the modern era – Jefferson would be smiling and Hamilton would be crying.

    Sadly, you will be ignored in Oregon as Ron Paul was ignored at the Federal level because the banksters, the military industrial complex, and their lousy media want their game to continue – the destruction and theft of the middle class and legitimate businesses in America.

    We live in interesting times as it appears mother nature (economic reality) is looking to make a statement against 100 years of serious abuse.

    You are a great man Jerry – soloflex rules – best of luck

    • Jerry says:

      Thank you Scott. I certainly agree that banks should be at 100% reserve. Getting there will take an informed public. This stuff isn’t taught in school, much to our embarrassment. We’ll sacrifice our sons to defend Capitalism but won’t stir for a conclusion to understand it rightly employed.

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