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Starting a bank in California -- second page
Introduction and summary of recommendations
Our country is in trouble.
(A) Almost one Trillion Dollars have been created by the Federal Government and pumped into our economy in an attempt to rescue our banking system and the automotive industry.
(B) Unemployment is threatening to approach 6%, a four-year high.
(C) We have evidently “officially” been in a recession for one year.
(D) The wars in Iraq and Afghanistan have cost us a total of just over $600 Billion Dollars -- that is about $2,000 per person -- or $8,000 / family of four.
(E) Our national infrastructure is in sad shape.
(F) Most states are having enormous budget problems.
(G) In Fiscal Year 2006, the U. S. Government spent $406 Billion of your money on interest payments to the holders of the National Debt. Compare that to NASA at $15 Billion, Education at $61 Billion, and Department of Transportation at $56 Billion (from: http://www.federalbudget.com/). In 2008 the interest on the debt was over $450 Billion.
It is obvious that (a) our finances are being mismanaged and (b) bold action must be taken to prevent us from economic disaster.
This is the action we recommend.
(A) The Federal Government should immediately stop borrowing money to pay its debts and expenses and instead create whatever money is needed to pay existing debts and expenses. We can use the natural wealth of our nation wisely to solve our current money problems.
(B) The government should immeditely embark on a water-oriented system aimed at creating and distributing fresh water to wherever it is needed to raise food.and wealth prodcuing crops.
(C) Using Citizen-owned grass-root 4% mortgage banks to put money into our economy directly at the local level.
If various people and groups of people start banks for the sole purpose of providing 4% home mortgages, we think that will solve our country’s financial problems. There are three enormous benefits to citizen owned 4% mortgage banks
1) Home buying will be affordable to way more people.
2) The bank owners will make tons of money --- because they are essentially getting 40% interest on their invested capital (assuming a 10% fractional reserve). That 40% return can be partially (50%?) or wholly reinvested for the public good.
3) The creation of new money will be put in the hands of the public -- with natural checks and balances established by Congress, in accordance with the Constitution.
No new laws or government action is needed -- existing laws cover every detail.
The essence of the laws are available on our website.
Basic requirements for starting a bank in California. We assume most States have similar laws.
http://www.howto-ville.com/Money%20Section/bankrequirements.html
http://www.howto-ville.com/Money%20Section/californiabank.html