Banking in the Public Interest Vs. Private Profiteering & Control
ThePlatform.ie – Ireland’s Solutions Resource.
by the Public Banking Forum of Ireland (PBFI)
The Community-Public Banking project is about taking back control of the creation and allocation of our money supply from private profiteers and putting it into public hands. This can ensure the majority of credit created is for productive purposes, i.e. for business investment, for the implementation of new technologies, for increasing productivity, for the creation of new goods and services, all of which create jobs, and is not used for inflationary asset speculation and the creation of boom-bust cycles. Community-Public banks will fill the gap in lending between what the Credit Unions and the commercial banks offer.
Economic Growth & National Income:
Professor of Banking Richard Werner, Notes that,
“Economic Growth and National Income are almost entirely determined by a factor that is decided at home (in Ireland), namely, the amount of bank credit created for productive purposes“
Examples include, Germany, Japan, China, Korea & Taiwan.
In Ireland, five, but mainly three Commercial banks control c. 95% of the loan market (mortgages, personal & business/SME loans). Their CEOs & boards essentially control the economy via control of the credit of the nation, i.e. their control of who gets credit, the purpose for which it can be used and the price (interest rate) of it.
Germany has 70% Community/Public Banks. Their system is 200 years old and has never received a cent of taxpayer’s money. It is the backbone of the German economy, the 4th largest in the world. It prioritises support for their businesses/SMEs and start-up businesses.
87% of all businesses in Germany have a turnover of less than €1m per annum.
Ireland can drive its indigenous economy and rural revival with a network of Community-Public Banks. It can also fund local infrastructure projects and rid us of the extortion of Public Private Partnership (PPP) schemes. A public national development bank similar to the German State Bank KfW is also needed to fund larger national projects.
“(Banks) .. should create credit and lend mainly for productive purposes, for business investment, for implement new technologies, for increasing productivity which creates jobs, is non-inflationary, even at full employment you can have more growth if you have productive credit creation – there is almost no limit to growth, because the limit is the technology, the ideas coming from humans …..” Professor Richard Werner
The German System comprises 1,400 Community-Public Banks with c. 15,000 branches; they do not partake in speculation or securitisation. Banks are regionally bound and regionally focused, with the prosperity of their designated region a priority.
Ireland’s Credit Unions are invited to be part of this Community-Public Banking project.
The An Post Post Office Network could adopt the phenomenally successful Kiwi(Post)Bank model. See the PBFI Proposal on this below.
Local Councils should support their introduction to every County in Ireland.
We must remember Germany, the 4th largest economy in the world with exports that match that of China, has c. 70% Community-Public Banks – We should aim for 50% over the next 10 to 15 years.
The Project: The Community-Public Banking for Ireland project is currently being developed by the PBFI, supported by the Business Retail Union of Ireland (BRUI).
The Actual Cost of Sustaining the Current Financial System – Professor Steve Keen.
Professor Richard Werner https://professorwerner.org/
Professor Steve Keen https://twitter.com/ProfSteveKeen?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
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