Serious economic reforms will not be possible in the movement toward a sustainable society until the control of economic activity by private banks ends. Wealth is not just stored but also created by massive international banks, which have the ability to select investors and types of investments based on their goal of maximizing profits. The costs of their wealth are borne by those who are in need of loans — including city and state governments, and businesses large and small.
Public Banking is a crucial step in reducing the dependence on private banks. Public banks may be owned by a municipality or even a state, as in the Bank of North Dakota. Here loans are made in the public interest, benefiting small investors, student loans, community development, local business, and others. Because money is not taken out of the community in the form of profits for multinational banks, more funds remain available to support local interests.
The Public Banking Institute (PBI) is the leading supporter of the development of public banks. The following video offers a discussion with Ellen Hodgson Brown, the Founder and former President of PBI, and Walt McRee, the Chair of the Board. Ellen and Walt offer a clear description of what a public bank is, how to start one, and what impact public banks have on local communities and, potentially, on the country as a whole.
Interview with Ellen Hodgson Brown and Walt McCree