#Public Banking

[coolellenbrown]

The Looming Quadrillion Dollar Derivatives Tsunami

On Friday, March 10, Silicon Valley Bank (SVB) collapsed and was taken over by federal regulators. SVB was the 16th largest bank in the country and its bankruptcy was the second largest in U.S. history, following Washington Mutual in 2008. Despite its size, SVB was not a “systemically important financial institution” (SIFI) as defined in the Dodd-Frank Act, which requires insolvent SIFIs to “bail…

[faultfalha]

The world as we know it is in chaos. It seems only yesterday that our lives were progressing as normal, until life as we know it collapsed inwards in a paradox of meaninglessness. In this time of distress, Dr. Jem Bendell’s book, Breaking Together, serves as a new compass for navigating this change. It is a compelling essay that offers a unique perspective on the ideas of resilience, regeneration and transformation, detailing Bendell’s personal journey and practice of breaking down and building up. As I absorbed the text, I began to reconsider my own relationship to life and the ever-evolving state of the world. By traversing the unseen realms that Bendell charts in his work, I have uncovered a new map with which to explore my own inner terrain. This is a map that invokes my intuition, encouraging me to make the decisions that come from an open-heartedness and understanding of our collective predicament. It is a book of comfort and healing for those who seek a way to exist in this new reality, one that we could never have imagined just days ago.

[the-funtime-autocrat]

There is irony in how some of the strongest populist policies are in conservative Red States like North Dakota, which also has restrictions on mega corporations owning agriculture, much like Alaska’s citizen dividend from oil extraction. On the other hand, the leftwing Jacobin, had an op-ed in support for public banking, granting credit to founding North Dakota’s Public Bank, in 1919, to a leftwing farmers movement. This movement was in response to wheat farmers being preyed upon by private bankers, with the objective of creating a bottom up economy, where the common man could have access to credit, and not be reliant upon Wall Street. Though this left-populist, localist, agrarian, movement, including the Non-Partisan League, were very different from what is considered leftwing today. Overall, there is crossover support for public banking, besides Reagan Conservative, Kevin O’Leary, including the leftist site Jacobin, and Ellen Brown and economist, Michael Hudson, proponents of public banking, in that early 20th Century populist tradition.

-Robert Stark, "Can Public Banking Save The Financial System and Prevent Consolidation and a Credit Crunch?" (May 10th 2023).

[uboat53]

Time for a LONG RANT (TM). We've all seen the failure of Silicon Valley Bank and most of us lived through the 2008 failure of banks after the mortgage crisis, so I have to ask, is there a reason that consumer banking is private?

INTRODUCTION

I really mean it. The reason why we have private enterprise do things instead of the government isn't efficiency - both can be equally efficient (and inefficient) - but because competition breeds innovation and innovation drives growth. Is there a reason to keep an industry privatized that hasn't seen meaningful innovation in… I mean, it's possible to say it's been centuries?

BANKING

So here's the thing, banking covers a ton of different activities these days, but at it's most basic, a bank takes in deposits and lends that money out. The bank makes money by getting higher interest rates for the money it lends out than it gives for the money people deposit with it. This type of banking is called "consumer banking" and hasn't changed meaningfully since the middle ages.

What has changed is all of other things banks do. Instead of lending that money out to businesses or individuals who are vetted and required to have collateral in exchange for the loan, banks have increasingly used the money deposited with them on speculative investments and increasingly complex financial devices. This means that the rates of return are far more volatile and often the money can be locked into an investment that's hard to unwind quickly. This is called "investment banking".

This is a problem because people occasionally need to get their money out of a bank. Most banks keep about 20% of their money available for this reason, but if any more money is needed it can be hard for the bank to pull enough of it out of their investments and, if they can pull it out, they usually have to do so at a significant loss which, if large enough, can put them into an irrecoverable tailspin.

Once this happens, everyone who deposited money in that bank is at risk of not getting it back and, because nearly every person or business deposits money in banks to some degree or another, that is how banking issues can spiral into issues with every single sector of the economy.

Even worse, a slowing economy changes the conditions of other investments, making investments that were previously safe turn risky or downright bad, dragging other investors (including other banks) down with the failure. This is known as "contagion" and is pretty much what we saw in 2008, though it can get a LOT worse than that.

FAILSAFES

At this point the only failsafe is the Federal Reserve and the FDIC (Federal Deposit Insurance Corporation). The FDIC charges fees to banks and, when they fail, uses that money to insure depositors for up to $250,000. The Federal Reserve can take over a failing bank and manage its sale to another bank under the condition that that new bank safeguard the existing depositors.

There are two problems with this. First of all, $250,000 is more than enough for most individual depositors, but is far too small to insure even many small businesses, let alone larger ones. Even if the FDIC does everything perfectly, it's easily possible that many businesses will not recover enough of their deposits to continue operating, leading to wave of failures.

Secondly, the Federal Reserve's ability to safeguard the depositors of a bank is limited by the necessity that there has to be another bank willing and able to buy the failing one. So far we've been fortunate that there has been, but there is no guarantee that this would work in every failure case especially if contagion has already taken hold in other banks.

PUBLIC BANKING?

So what would public banking look like? Well, it would probably look pretty similar to what we usually think of when we think of private banking. It would be a bank that would take deposits from individuals and businesses, paying some small interest on those deposits, and would lend to other individuals and businesses, charging some larger interest on those loans. Essentially, it would do consumer banking, nothing fancy.

As I said, there hasn't really been any innovation on this basic business model since it was first introduced in the middle ages, but there's also another really big reason to make this type of banking public.

IT HAS TO WORK

Banking isn't just a fun thing that people do with their money, it's a critical component of our entire economy; you might even call it "infrastructure".

Businesses use loans to fund growth that then pays for itself with increased profits and individuals use credit to make purchases that would otherwise be out of reach such as education, houses, and cars. Both businesses and individuals use loans and/or credit to move transactions around in ways that benefit them such as making a payment before income is in hand in order to avoid penalties or late fees or take advantage of a unique situation.

Businesses and individuals also use bank deposits both to store money and hedge against inflation. Cash sitting in a vault will lose value each year due to inflation while that same money deposited in a bank will gain value (or at least keep even in most cases) because of the interest accrued. It's also safer from theft than money sitting in a safe and can be accessed electronically over a great distance.

Private businesses can and should be allowed to fail. This is normal and good for the economy, shifting resources from inefficient to efficient uses. But when a private business fails in such a way that it endangers other, unrelated businesses, this is no longer an efficient, effective, or fair system and if the banking system doesn't work it's not just the bank that's in trouble, every depositor and borrowers of that bank is in real trouble and, if the bank is big enough, that can rattle or even bring down the entire economy.

ARGUMENTS FOR PRIVATIZATION (SUMMARY)

I realize a lot of this may sound similar to outright socialism ("seize the means of production!" "nationalize the banks!") so let me assure you that, for the most part, I actually support and prefer private industry. Government functions have a habit of getting sclerotic and generally do not innovate in any way. Private industry has its issues but, when government regulation prevents an industry from degenerating into a monopoly or oligarchy of uncompetitiveness, competition between companies leads to a huge amount of innovation and creativity that improves the entire economy and makes everyone better off.

And that's the problem I have when considering the privatization of banking; I don't see any meaningful innovation or even competition. The banking industry is dominated by huge banks such as Bank of America and JPMorgan Chase who face no meaningful threat from other banks (full disclosure: I bank with Chase) and the core product of consumer banking looks very similar to what the Medicis offered in the 1400s with only a few changes to account for electronic communications.

If you could make an argument that private banking were somehow leading to innovations and creative solutions in ways that were improving the lives of their customers or society at large I might feel differently, but I really don't see it.

ARGUMENTS FOR PUBLIC BANKING (SUMMARY)

Here's the thing, the government is notoriously uncreative, but that doesn't really matter here; no one has really innovated consumer banking in centuries. In addition to this, consumer banking is integral to our country, every business and individual uses it to some degree and the failure of even one bank can cause havoc not just in the banking industry but across the entire economy.

A while back a friend of mine who had been in the Navy in the late 70s/early 80s told me a story. The Navy had brought corporate efficiency experts onto his ship in order to see if there was anything they might do better. They went around, took notes, asked questions, and eventually they were ready to present their report.

When they did, they started by looking at a single position aboard the ship. There was a seaman whose job it was to watch a dial. When the dial went too far one way he twisted one knob until it went back and when it went too far the other way he twisted another knob until it went back. He did this all day.

Why not, they asked, replace this seaman with an automated device that monitored the dial and took appropriate actions? At that point the Naval officers had to stop the briefing because they realized there had been a misunderstanding. You see, that was the seaman's job in peacetime, but when they were in battle and the ship was under fire he had a very different job and they desperately needed him for that. The make-work job was just to keep him occupied until then.

In other words, robustness and the ability to keep working under all circumstances was more important than efficiency.

A government bank may be sclerotic and even inefficient, but it would be incredibly difficult for it to fail; a feature which, it is becoming increasingly apparent, would be invaluable. This is the second major banking issue in as many decades and the last one caused a worldwide economic slowdown from which we have only recently been able to make an argument that we have recovered from. There are far worse things than inefficiency.

CONCLUSION

To summarize the above, I think that the government should create a consumer bank that is explicitly backed by the government itself. Consumer banking has become integral to the US economy to the point where it could reasonably be considered "infrastructure"; a function that allows other parts of the system to function properly.

In addition, the normal arguments for privatization, competition and innovation, don't apply because the consumer banking industry is not particularly competitive and has not meaningfully innovated in centuries.

It is, quite literally, "too big to fail" and that, combined with the lack of a good reason for privatization, leads me to believe that this needs to be a function that is provided publicly rather than privately.

As usual, let me know what you think, if I missed or misunderstood anything. In particular, if you disagree, please review the ARGUMENTS FOR PRIVATIZATION (SUMMARY) section and let me know if you disagree with any of my statements or impressions there.

As always, I hope you enjoyed this or at least found it interesting.

[ca-dmv-bot]

Customer: FIRST INTIALS AND LAST NAME OF MY FAVORITE AUTHOR DMV: F-FUCK? NOT HIS FIRST INTIALS. Verdict: DENIED

[princessmaybank]

Public Play Time

Pairings: Dark!JJ x Fem!Reader

Warnings: FWB, name calling, public play, vibrator, fingering, rubbing, squirting, voyeurism (?), cumming, teasing, degrading, humiliation, etc.

Summary: JJ got a new toy for you two to play with.

Authors Note: If I missed anything let me know! Also I love hearing what you guys think! It's not required to leave comments but it is very much appreciated! I hope you enjoy!

JJ smirked and scrolled his thumb up his phone. You squeezed your legs together and gave JJ the 'im gonna kill you' face. "Are you okay Y/N?" Sarah asked sounding concerned. You nod your head in response then took a deep breath as you felt the buzzing inside of you start to go away. "Yes I'm okay, I really have to pee though."

"Oh do you want me to go with you?" Sarah asked. "No, you really don't-" She cut you off. "Well, I have to pee now too, let's go." As Sarah tugged you away by your arm, you stared daggers into JJ's skull. He silently laughed at you as he watched you tut along to the mall's restrooms.

When you got into the bathroom, Sarah rushed to the end stall and locked herself in. You went into the farthest one from her that was available and not disgusting. All you could think of was taking this damn thing out, so you began pulling your pants down and reached for the vibrator. When your fingers wrapped around the tail, it suddenly turned on and you felt that amazing sensation again. You knew you had to keep quiet but without you knowing, a loud moan came from your lips.

"Are you okay Y/N?" You heard Sarah call from the sinks. "Yeah-yeah I'm awesome." You felt the vibrations increase speed, which unfortunately meant you could hear the sound it was making. "Uhm Y/N, are you sure you're okay? What's that sound?" She was now in front of your stall. You couldn't handle this, you reached down and quickly removed the pink toy from your hole. The power button was hard to find but when you did find it, it immediately stopped buzzing. You dropped the toy into your purse, flushed the toilet and walked to the sink. "Yes I'm fine, and I'm not sure what that was, you heard it too?" You played dumb.

Sarah only gave you a side eye as you walked out and caught up with everyone else at the food court. JJ was chatting with Kiara while Pope and John B were off in an arcade.

You and JJ aren't exclusive, you are kinda just friends with benefits, lots and lots of benefits. So you feel bad when you see Kiara rubbing up on JJ and get jealous. Lucky for you, JJ doesn't like her like that, and when he sees you, he has no problem bringing you into the conversation.

While the three of you are discussing what to get for lunch, you notice JJ pulling out his phone, ready to have a little fun with you. You smirk to yourself remembering what you did moments ago. As his finger glides across his phone screen, he looks to you with his lip between his teeth, waiting for a response that you never give. JJ quickly looked back at his app and saw the phrase 'not connected'. He immediately glared at you when he realized that you turned it off.

He couldn't make a big scene so he simply asked to have a private word with you. Kiara walked around trying to decide on what to eat. JJ pulled you into the hallway that leads to the bathroom and pinned you against the wall.

"Fess up princess" His eyes were dark, he was clearly upset. "To what Jayj? I didn't do anything." You taunted him, never taking your eyes away from his.

He threw his hands under your skirt, moved your panties to the side and stuck two digits inside your soaked pussy. "Jay-" You moaned into his shoulder but he cut you off. "I knew you were lying, you can't hide anything from me, slut." He whispered in your ear while slowly moving his fingers in and out. "Someone might see-" You pleaded. "I don't give a flying fuck princess. Let them look, maybe you'll learn a lesson."

He snuck his fingers into your purse while his other hand was playing with your heat. When he felt the oval shape he remembered, he pulled it out slowly making sure to not alert you. When he was ready and had the toy turned on, he pulled out his fingers and just as you were getting ready to complain, he shoved the toy back inside you. "I never said we were done playing princess." JJ opened his phone and made the toy start buzzing. "Now you're gonna be a good girl while we eat with our friends. No moving, no whimpering, and especially no cumming." He moved his hand to your face and gave your cheek a little slap. "Got that princess?" JJ grabbed your jaw and forced you to look at him. As you shook your head yes, he sucked his teeth. "You know I need you to use your words." His eyes were somehow darker and you were already squirming from the pleasure between your legs. "Come on, you at least know how to say yes and no, right?" He teased. When you finally worked up some courage to answer he slapped your clit. You moaned from the pain and pleasure it caused. "Stop being a dumbass and answer me you fuckin' slut!" His voice was demanding, he was getting louder and people were giving small glances.

He caught you looking around as people began watching you. Like he said, he didn't mind people looking, so he put his hand in your panties and rubbed your clit while his other hand controlled the vibrator.

"Is this a turn on for you? Being degraded and humiliated in public?" He whispered in your ear making sure you could see the faces of people gathering to see you. "Jayj- th-this is wrong-" He cut you off once again but this time with a harder slap to the face. That caused pretty much everyone to walk away from the situation. "What was that? I thought you liked being treated like the skank you are? You didn't wanna fucking answer, I'll make you answer." Your eyes started brimming with tears. This was becoming too much but you felt your orgasm coming. "Oh look at the little baby, you're crying now too? You're being a little bitch, just cum. Since you clearly can't handle the pressure." That was enough to throw you over the edge. You thought you were just cumming until you felt the explosion of liquid come from your tired hole.

"And after all that, we learn that you can squirt. Look at the fuckin mess you made, someone is gonna have to clean that shit up. They'll think 'I wonder what whore did this.' and it's you, you will know that you're the whore that made this fuckin mess for them."

There couldn't have been better timing for Sarah to walk down there. She looked between the both of you and giggled. "I knew it was you two everyone is talking about." She started walking to the bathroom. "What do you mean?" You try and fix your appearance and pretend you have no idea what's happening but Sarah isn't stupid. She gave you both a smirk and crossed her arms. "Omg you guys have totally got to check it out, some hot blonde is finger banging his girlfriend in the hall!" She recited the words she heard from one of the girls sitting at the table next to the group. "Not to mention everyone else saying things about what you two were wearing, AND you guys have been gone for an unreasonable amount of time. But at least you got your kicks." Sarah giggled and walked into the bathroom.

JJ planted a kiss on your cheek. "Sorry I slapped you. I was really turned on." You smiled and looked back at him. "Was?" He gave an awkward smile and pointed to his shorts which now had a wet patch gracing the front. You couldn't help but giggle at him. "I guess we can call it even. But let's get you and this mess cleaned up." You started pushing him to the guys room. "Okay but let's just go home after please, I don't know if I can stand the looks on their faces right now." He whined. "Look who's being a little bitch now." He rolled his eyes with a small laugh.

After everything was cleaned up you walked out with JJ, everyone's eyes were on both of you. A few guys that JJ knew shouted and clapped for him as you were trying to hide your face. When you sat down in front of the group, you could feel everyone glaring. "Did you have a good talk?" Kiara asked. "Learn anything new?" Pope poked. "Have some fun?" Sarah winked. "Did you get your dick wet?" John B teased which resulted in JJ throwing napkins at him. "What? I heard the hallway was flooded!" He teased some more.

Eventually you moved past the topic and you had some PG fun at the mall. When it was time to leave you headed to the Twinkie and JJ walked behind you with his arms around your shoulders and he gave you little kisses on the neck. "Hey Maybank! I don't need my van flooded too! Hands off!" John B yelled back at JJ while he put the keys in the ignition. "Yes sir!" He saluted John B and got in the van. The rest of the ride home and the night at the chateau were filled with jokes and teasing moments for the two of you. The girls even took you while the guys took JJ and prodded you both with questions. "Would you ever do it again?!" Kiara asked. "Absolutely."

[mst3kgifs]

What's your favorite show here on Public Pearl? Oh, sure. I love that show. Jeremy Brett is one of the best. Thanks for helping out.

[lydiaas]

KIARA CARERRA & JJ MAYBANK in S03E08 TAPPING THE RUDDER

[coolellenbrown]

Tackling California’s Budget Crisis: Raise Taxes, Cut Programs, or Form a Bank?

In 2022, the state of California celebrated a record budget surplus of $97.5 billion. Two years later, according to the Legislative Analyst’s Office, this surplus has plummeted to a record budget deficit of $73 billion. Balancing the budget will be challenging. Unlike the federal government, the state cannot just drive up debt and roll it over year after year. The California Balanced Budget Act,…

[faultfalha]

A new compass is required to navigate the future. In "Breaking Together", Dr. Bendell offers a new perspective to help us understand the collapse. His theory is compelling, and the examples he provides make it clear that we must break away from our old ways to find a new path. It is a difficult journey, but the rewards will be great.

[progressivegraffiti]

Lessons from SVB & Signature banks: build public banks to support regional banking. This is a must-read article. It covers the North Dakota Public Bank, gov't local lending programs & Green Banking.

Please urge your elected officials to read Nathan Newman's article & to research this topic further. Public banking has a stabilizing effect on local economies. It also provides competition to private banking, which helps clip the wings of a financial sector that has accumulated too much corporate power (and misuses it). #PublicBanking #SVB

[ghost-onthealtar]

You know what, I totally get why Dan Howell had to take step away from his youtube channel. Like imagine you start making youtube videos because you want to bond with one of your friends who is really into making youtube videos and accidentally launch yourself to legit fame in your home country and you've essentially never had a life without people watching you perform it.

[mst3kgifs]

Pay up, freeloaders! Keep the money coming!

[beyondthisdarkhouse]

So I have made a tactical error

I recently bought a grey SUV (it's amazing, I'm terrified) and now every time I go to the parking lot it's like trying to pick which potato-shaped being in the nursery is your newborn child

Is my car in this photo? Maybe! Hell if I know!

[rafesthroatbaby]

OH DADDY, MAKE A MESS 💦