If you believe the function of banks is to simply lend account holders’ money to other people you are misinformed about the actual function of banking.

Banks are in the business of purchasing and selling securities. Bank loan origination is the process of a new loan contract creating a security called a promissory note that is purchased by a bank.

Originating a new bank loan creates new money that did not exist prior to the loan contract. See the article linked on this thread, “Money Creation in the Modern Economy” for documentation.

The root of the problem with most large banks today is that the majority of new loans are originated for change of ownership asset speculation that causes asset price inflation. This type of investment will continue but should not be the primary focus of new money creation.

If our nation is to have noninflationary economic growth we must return to time-proven regulations that at one time guided new money creation into physical investments for science, technology, infrastructure, agriculture, industry, education, healthcare, housing, and other productive and productivity enhancing investments.

New money creation must return to providing for the requirements of small and medium sized enterprises that are one of the primary jobs creating engines for our economy.

There have been many attempts to reform our financial system in recent years, yet all have failed to prevent the debt-pyramiding now crushing corporate interests and personal lives.

Establishing new state-owned banks around our nation opens up the potential for guiding, rewarding, and protecting local private banks, public banks, credit unions, municipalities, boroughs, villages, port authorities, industries, students, and entrepreneurship.

Let us work together to understand the process of creating a new system of public banks that help to reform our financial system to bring in a new era of health for our population, business, and natural world.