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”