Why Move OUR Money?

The time for public institutions to place public money into private banks, which then use the public money for their own private gain, is over. Private banks have squandered the public trust.

Public money should be placed in public institutions -- public banks -- for the benefit of the public. Assuming safety, liquidity and return can be adequately addressed, there is no reason for governments NOT to put the public's money into public banks. After all, public banks ensure that the money is used for the benefit of the very same people who generated that money in the first place!

MoveOurMoney.net is a coalition of organizations which advocate for school districts, local, and state governments to move OUR money from the private banks to public banks.

Members of this coalition believe in a democratic economy – with a monetary system that is democratically managed by public institutions. We believe that the best way to end the hegemony and fraud so evident in the existing private monetary system is to simply not participate in it. We are creating a separate credit generating system through public banks that will better serve the people.

We are creating a new world - join us! It's only just begun. Here are four very good reasons to move OUR money.

3) Put OUR Money to Work for the Public

In all the talk about public banks it's easy for forget that banking is all about creating NEW money for an economy. You basically monetize future revenue by creating it as a loan and then having the loan slowly disappear with every monthly payment.

Without this fundamental extension of credit, it's really hard for investments to happen, as we've so plainly seen over the last few years. Compounding things, money "leaks" out of our economies because we buy stuff at franchises (instead of independent businesses), with profits going to remote shareholders (instead of being reinvested locally).

Let's be very clear about this -- any pool of money OTHER than that generated by a depository bank is RECYCLED money -- it simply collects money from one pocket and puts it in another.

This might be a good approach if the money you are attracting is coming from the state or fed govt, but that is not like creating NEW money, like what a depository bank does.

Isn't it time we put public money to work for the public and have it create NEW money to expand sectors of the economy that we want to prioritize?

4) Invest Locally

What would we prioritize? At the end of the day, the only thing that matters is for homeowners to receive low cost mortgages, students to receive affordable student loans, businesses to receive low cost operating loans, and farmers to receive short term ag loans. This is how investments are made -- one loan at a time. And the investment is in ourselves.

Ask yourself, are you worth it? Are you worth investing in yourself?

These are the questions we need to ask ourselves, because this is precisely what a public bank funds -- you!

1) Maximise Public Value

When we make a deposit of our money into a bank, the bank then turns around and creates the equivalent value in bank credit, a man-made accounting concept that dates back to the invention of double-entry accounting in the 1200's. The bank can buy securities, bonds, or loan this credit out. In every case, assets are created and the new assets, derived from bank credit, benefit the bank.

Every time a City, County or State Treasurer places money -- OUR money -- in a bank, bank credit is created. It does not matter if the Treasurer is in "control" of the money -- the bank credit is used by the depository bank to maximise the shareholder value.

Let's be very clear about this, when public money is put into a private bank, it is used to maximise private profit.

Why not use OUR money to maximise Public Value? Why not put OUR money into OUR bank so that the benefits of bank credit is used for the people to whom the money belongs? This is common practice in both developed (Germany, Japan) and developing (Brasil, India, Chile) countries. Why not maximise the value created for the public by placing public money into public banks?

2) Reduce Interest Costs

Reducing interest costs is one of the key ways we can maximise public value.

Let's use a real world example, one that many people have been familar with for years -- the San Francisco/Oakland Bay Bridge Retrofit.

Total cost of Materials and Services: $6B

Total cost of Interest and Fees: $6B

Where does that interest go? To private investors.

Let's be very clear about this -- this bridge is a public resource, but it is private investors who receive much of the $6B in interest and fees.

What if the bridge were financed by a State Bank of California? Any interest would be paid to the public bank, which then would return the vast majority of it to the state's general budget. Interest would be minimal.

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