Playing The Banking Game: How Cash-starved States Can Play It

[Rajiv]

PLAYING THE BANKING GAME:
HOW CASH-STARVED STATES CAN CREATE THEIR OWN CREDIT

On February 19, 2009, California narrowly escaped bankruptcy, when Governor Arnold Schwarzenneger put on his Terminator hat and held the state senate in lockdown mode until they signed a very controversial budget.¹ If the vote had failed, the state was going to be reduced to paying its employees in I.O.U.s. California avoided bankruptcy for the time being, but 46 of 50 states are insolvent and could be filing Chapter 9 bankruptcy proceedings in the next two years.²

One of the four states that is not insolvent is an unlikely candidate for the distinction – North Dakota. As Michigan management consultant Charles Fleetham observed last month in an article distributed to his local media:

“North Dakota is a sparsely populated state of less than 700,000, known for cold weather, isolated farmers and a hit movie – Fargo. Yet, for some reason it defies the real estate cliché of location, location, location. Since 2000, the state’s GNP has grown 56%, personal income has grown 43%, and wages have grown 34%. This year the state has a budget surplus of $1.2 billion!”

What does the State of North Dakota have that other states don’t?
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[flintlock]

Re: Playing The Banking Game: How Cash-starved States Can Play It

While I don't really know for sure, I suspect the difference with ND is that they don't have a huge government, nor a permanent welfare class to support. And the people there tend to be independent minded and believe in taking care of themselves. Nor were they addicted to the materialistic world of mini-mansions and luxury cars. Just a hunch.

[Rajiv]

Re: Playing The Banking Game: How Cash-starved States Can Play It

Read the linked article -- it tells how -- you should also look at the Ellen Brown videos posted by Sapiens.

[cjppjc]

Re: Playing The Banking Game: How Cash-starved States Can Play It

While I don't really know for sure, I suspect the difference with ND is that they don't have a huge government, nor a permanent welfare class to support. And the people there tend to be independent minded and believe in taking care of themselves. Nor were they addicted to the materialistic world of mini-mansions and luxury cars. Just a hunch.

Yes. Maybe fractional banking works with responsible borrowing.

[Rajiv]

Re: Playing The Banking Game: How Cash-starved States Can Play It

Ability to print money, and not to have to fund wars through that money can probably work wonders!