[Occupymendocino] Fwd: Come to City Council FB tonight Monday 10 Dec. 6 pm

[Richard Karch]

I'll be there!  This is very understandable. I wonder if the City had an idea of how
they make money from a city bank? And how much?  Will the mortgage payments give a profit for
the banks, for example.

Richard

> 
> 
> Hi Folks, 
> Agnes asked me to send this out and invite all who can to come to Fort Bragg City Council meeting tonight as she plans to read this letter and present it to City Council.
> Hope you can make it.
> JL
> 
> ********************************************************************
> 
> Good evening Fort Bragg City Council Members,
> 
> Thank you for this opportunity to talk about what I've learned regarding
> public banking.
>           I believe if you are interested in taking direct control of Fort Bragg's foreclosure problem, it can be resolved by using existing banking laws along with eminent domain. The City or county applies to its state banking regulatory body for a state bank charter. All states define the requirements for charters and oversee the compliance according to an article I read at www.nationalcommonwealthclubgroup.net.  Much of the following applies to county as well as city public banks:See the website for the City of San Francisco at the end of this letter for a CA precedent.
> 
>      Once a charter is granted, a bank can commence with normal banking activities that conform to internationally accepted processes and
> procedures. The above group advocates that a local public bank not
> offer retail banking services to the general public. The fundamental
> banking activity is the ability to create credit(money). As explained on the Federal Reserve Banks, Bank of Dallas under a section called "How Banks Create Money". Banks actually create money when they lend it.
> 
>      When a bank creates credit for a borrower, it does not reach into a
> pool of existing funds, but rather creates that credit simply with
> an accounting entry. (For example When it gives you a car loan of $30,000. it does so by entering a liability on the bank's balance sheet to give you $30,000 and is offset by an entry on the asset side of its balance sheet represented by the loan document you signed. (The bank doesn't have to get the money from depositors or anyone else, but creates it out of thin air.)
> 
>  The only constraint on how much credit money banks can create is based on the long standing convention that limits the amount available to a multiple of the bank's assets.  That varies by jurisdiction (i.e. conditions set by local regulators) and the prevailing economic climate, but averages about 10 times, ie. for every $1 in assets owned by the bank, it is allowed to create $10 in loans....
> 
> So if, for example, the county or city owned $100 million in net assets,
> that county bank would have the credit generating capacity of up to $1
> billion, that is, it can create up to $1 billion out of thin air, just
> like any other bank, money that it can make available to its own citizens
> because the bank and the citizens own those assets.
> 
>  How can the county use this credit creating ability to solve its
> foreclosure problem?  It takes just two steps according to the Commonwealth Group:
> 
>   1. The County issues a moratorium on all foreclosures, requiring that all mortgage holders deal with the county bank instead of instituting
> foreclosure procedures against property owners.....and
>  2. The county bank buys distressed real estate loans from existing lenders, just as the Federal Reserve did by buying toxic assets from the Wall Street Banks. The county bank acquires those loans by creating a credit account for the current mortgage holder in the amount of the fair market purchase price for each loan/property. This now puts the distressed mortgage in the hands of the county.  This benefits every one: the county or the city, the home owner and the mortgage holder-especially if it is a local bank.
> 
>     Also note p.5 and 6 of the above website to see how Congress can help regarding reasons for separating county banks from FDIC and forming a separate corporation, such as a holding company.  This information can be crosschecked at www.publicbankinginstitute.org, contact Mark Armstrong there.  Occupy Mendocino hopes to host either Mark Armstrong and/or Susan Harmon from the Public Banking Institute to speak to our community and to you about the opportunities of creating a Public Bank.
> 
> As a precedent, read the City of San Francisco explores a revolutionary new model. http://www.huffingtonpost.com/2011/11/03/municipal-bank-sanfrancisco-n-1074600.html
> 
> MCTV  will air the first of a 3 part series on the Foreclosure Town Hall Meeting (sponsored by Occupy Mendocino) on Wednesday Dec.
> 12, 2012.
> Thank you for your attention,
> Agnes Woolsey
> 
> 
> -- 
> OCCUPY MENDOCINO (the Mendocino Coast) and the Global OCCUPY Movement want government of the people, by the people, and for the people - not of the corporations, by the lobbyists, and for the richest 1%.
> We stand with those who have lost their homes, their jobs, their savings, retirements, pensions, and health insurance.
> We stand with those who struggle to put food on the table and who now work MORE for MUCH LESS.
> We stand with the elderly, vulnerable, veterans, laborers, working people, students, teachers, unions, children and our planet.
>                             PLEASE JOIN US
> www.OccupyMendocino.net
> 
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