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North Dakota's Boom Goes Bust. 

It's Public Bank Comes to the Rescue !!

Bank of North Dakota Soars Despite Oil Bust
By Ellen Brown
Despite North Dakota’s collapsing oil market, its state-owned bank continues to report record profits. Even amid falling oil prices, by increasing its lending into a collapsing economy, the state owned Bank of North Dakota has helped prop the economy up.

In November 2014, the Wall Street Journal reported that the Bank of North Dakota (BND), the nation’s only state-owned depository bank, was more profitable even than J.P. Morgan Chase and Goldman Sachs. The author attributed this remarkable performance to the state’s oil boom; but the boom has now become an oil bust, yet the BND’s profits continue to climb. Its 2015 Annual Report, published on April 20th, boasted its most profitable year ever.

The BND has had record profits for the last 12 years, each year outperforming the last. In 2015 it reported $130.7 million in earnings, total assets of $7.4 billion, capital of $749 million, and a return on investment of a whopping 18.1 percent. Its lending portfolio grew by $486 million, a 12.7 percent increase, with growth in all four of its areas of concentration: agriculture, business, residential, and student loans.

By increasing its lending into a collapsing economy, the BND has helped prop the economy up. In 2015, it introduced new infrastructure programs to improve access to medical facilities, remodel or construct new schools, and build new road and water infrastructure. The Farm Financial Stability Loan was introduced to assist farmers affected by low commodity prices or below-average crop production. The BND also helped fund 300 new businesses.

Those numbers are particularly impressive considering that North Dakota has a population of only about 750,000, just half the size of Phoenix or Philadelphia.

What can a public bank do for Philadelphia and other American Cities?

  • Reduce debt service for the city and schools, putting more money in our classrooms and neighborhoods.
  • Generate multi-million dollar annual profits that return to the city as non tax revenue, in place of more taxes.
  • Provide affordable credit to grow new, small, sustainable and minority owned businesses and co-ops.
  • Rebuild crumbling infrastructure at reduced cost.
  • Create thousand of new jobs.
  • Provide affordable mortgages to homeowners to acquire and rehabilitate properties in their neighborhoods.
  • Strengthen our local community banks and credit unions.
And get our public funds out of Wall Street banks and into a safe, secure public bank before the next crash, and our deposits are confiscated in a "bail in" to rescue Wall Street again..
  By Pam Martens and Russ Martens: May 4, 2016
Yesterday, the Federal Reserve held a public board meeting to propose two new Byzantine rules to prevent another 2008-style financial contagion on Wall Street and potential crash of the U.S. economy. Unfortunately, the details brought images of the curtain scene from the Wizard of Oz. If you looked beyond the copious verbiage, there didn’t seem to be much there, there.
Read the full article here
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