Since this is my first article under this category in the State of Maine, it may seem strange that I start with a comment on North Dakota.
Well not really a comment, a comparison:
North Dakota Has A One Billion Dollar Budget Surplus This Year And Is Looking For Ways To Spend It – Maine Has A Billion-Dollar Deficit And Is Looking For Ways To Find It.
North Dakota is the only state with a budget surplus.
North Dakota owns its own bank. No other state, including Maine, does.
Not only is it solvent with its own bank and a budget surplus of $1.2 billion, its personal income has grown 43 percent, and wages grew by 34 % this year.
Forget that North Dakota is cold. So is Maine.
There are over a hundred thousand people in Maine without work (official figures that say fifty thousand don’t count the folks who’ve stopped looking), only two thousand in North Dakota and the state didn’t have to cut its unemployment benefits.
Here is the one-billion-pound gorilla sitting in plush brick offices on the Corner of Main and Pine:
North Dakota owns it’s own bank, which of course is owned by the people of North Dakota.
“While bank bailouts fatten Wall Street, states continue to battle the credit crisis. In the search for innovative solutions, some political candidates are proposing that states generate their own credit by setting up their own banks” – attorney Ellen Brown, a Free Market economist.
I spoke briefly with Maine Gubernatorial Candidate Paul lePage at a Rotary function during the 2010 campaign and he agreed with the idea that states should own their own banks, adding that “I would rather suggest a cooperative banking system (which already exists in Maine).
He also said that Maine had to borrow “things” – like education systems – “from other successful states, like Utah, which,” he said, “also has a budget surplus”.
It doesn’t: Utah Gov. Gary Herbert’s office predicts that the state’s budget shortfall for FY2010 was about $28 million and the state will receive approximately $156 million from the federal government, but I guess he’s counting that as making up a surplus! Utah has a total state debt of $9,254,242,020 (that’s billion) when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.
But Utah’s educational system does have one thing going for it:
SALT LAKE CITY 2007 – “A new federal report ranks Utah student loan borrowers best in the nation for repayment, thanks to an innovative recession strategy deployed by the Utah Higher Education Assistance Authority (UHEAA).”
In its release of the Cohort Default Rates for 2007, the U.S. Department of Education reported that only 2.1 percent of the students repaying their post-secondary loans to UHEAA defaulted, compared to a national average of 6.7 percent.
I personally believe that since education is an investment in every aspect of the future, it should be free – subsidized by its future beneficiaries, mostly business, but that wouldn’t help the debt-based banking system that makes money by getting students into hock.
State-owned banks are probably the only way individual states will be able to get out from under the usurious debt-is-money, fractional reserve banking system that today has almost the entire world in debt! Great system, what?
Imagine all the men and resources spent on war over the last 300 years just to make money – money that could have been used to uplift and educate everyone.
Unless you’re North Dakota , you’re probably a state that has had some degree of difficulty or crisis involving finances.
So think for a moment on what is so special about North Dakota and connect the only three dots on the page: it is the only state in the union that has a budget surplus; it is the only state in the Union that owns its own bank; it is the only state in the Union with no connection to The Fed (a privately-owned, for-profit, non-government institution).
“It doesn’t have to rely on a recalcitrant Wall Street for credit. It makes its own” – ibid, Ellen Brown, February 2010.
This thinking, by the way, is not pie-in-the-sky waffle, but based on sound, tried-and-true fiscal responsibilily.
Stay in touch. Next article on the original colonies – and how they prospered by owning their own bank!