The oligarchs and superpacs are at the root of so much that is wrong with the country. Efforts to reign in the super-rich are essential to return to our republican democracy roots.
I think you need to run for office. Your ideas are exactly what’s needed now but who is taking that ball and running with it?? Thank you for continuing to point the way!
I think that your message is that, it is past time for governors, at least the blue state governors, to reassert their sovereignty and tell the Federal Government to go fish, and that includes redirecting all taxes that would go to the Federal Government to a State Bank.
It can be done. The Constitution acknowledges that the several states are sovereign, and that the only laws that apply across the states, are the ones that the several states have by majority vote, agreed to.
If, the states do not have any control over income taxes being withhold and transmitted to the IRS, for private companies, they certainly do for State and Municipal employees.
And they should disband the National Guard in the state, and re establish it as State Defense Force (aka state militia), Maryland had one, but it is currently all volunteer.
If all Blue states acted in unison, then the Trump regime would be hard pressed to do anything, as the only coercive force it has it the Federal Budget.
In the meanwhile. Governors should be more proactive, as regards ICE and CBP. Instead of merely issuing directives, such as Shapiro of Pa, has done or Wes Moore of MD, that the state should not assist ICE, they should issue directives that the police authorities protect the citizens against harrassment, and attack by masked and armed thugs, and arrest same with caught in the act.
That they haven't already,puts a lie to their verbal posturing.
At a minimum, the murderers of Good and Pretti, should have been arrested on the spot.
The fact that they are federal employees does not grant them immunity.
An enlisted member or officer of the armed forces cannot assault or murder citizens with impunity, so why are Governors, Attorney Generals, County and city prosecutors allowing these crimals to get away with murder? Cowardice,, is my good faith reply.
The official name for the sort of situation Chris is describing is “regulatory capture” and it happens often, across many industries. It occurs in large part because the US political system runs on money. Large, organized entities like businesses often have that money in abundance. They also invest some of those funds in professional advocates (aka lobbyists) who are well versed in the arguments their employers wish to make to elected officials. Since as a country we don’t actually support of political leaders all that well (they don’t have the kind of staff and expertise they need), lobbyists often wind up filling the gap. I’ve personally watched this happen over the twenty-plus years I’ve been involved with public policy.
One of the big fixes for this would be publicly funded elections. That would dramatically reduce the time and effort elected legislators need to devote to raising money. Providing for better pay for the legislative aides who do most of the heavy lifting in a legislator’s office would be another. Right now, these folks tend to be both massively overworked and underpaid. They do the job for a few years, then usually leave to become lobbyists themselves. Its’s a revolving door that doesn’t provide much benefit to the voters.
Thank you for this thoughtful, knowledgeable, referenced piece. Your points make sense to me, are hopeful in their direction and powerful in scope. Since I, as example, have no expertise in this arena, nor affiliation, except as citizen invested in democratic principles, your work may in fact be accessible to many. I hope so. Passing it on. Thank you.
Remember when the USPS had banking? Polls (and I believe these) showed huge support to going back to that. Instead, post offices have been closed at a rapid pace purposely. State banking makes perfect sense.
Can public support be gathered to promote effective and determined action? This seems a relatively simple step to regain community and state power and put 2 fingers up to the national corporate businesses.
It just needs courage and confidence and tenacity. Has that been lost along the way?
Check out "Grab Them By The EARR: How to get politicians to do what you want" it covers the Educate Activate Recruit Repeat framework for building public support and dismantling fascism. That's a booklet covering our most up to date tactics. Physical copies available for purchase at TheExistentialistRepublic.com and free pdf available in the shop at BuyMeACoffee.com/TheER .
Thanks again, Chris, for inspiring us to take up the challenge!
Onward to our state governments!
If North Dakota farmers can build a state bank, we can get our states to investigate and prosecute pedophiles, outlaw bribery, and rein in corporate governance!
State banks are a great idea but must be FDIC insured otherwise we are dependent on the state resources which are in some cases not very strong
A. Fully State-Guaranteed (Not FDIC)
If a state creates a bank and chooses not to use FDIC insurance, deposits may instead be backed by:
State treasury
State guarantee fund
Legislative appropriation
This is where your concern becomes very real.
If the state experiences:
Budget collapse
Pension crisis
Major recession
Political refusal to fund guarantees
Then depositors could face:
Delays
Partial repayment
Political fights over honoring guarantees
Unlike FDIC insurance, there is no automatic federal backstop unless Congress intervenes.
B. State-Owned Bank That Is FDIC Insured
Some state-owned banks still participate in FDIC insurance.
Example:
Bank of North Dakota
It is state-owned
It is FDIC insured
It has operated since 1919
It has been profitable for over a century
In this model, deposits are protected federally, not just by the state.
How FDIC Insurance Works
The Federal Deposit Insurance Corporation (FDIC) insures deposits at $250,000 per depositor, per institution.
Important points:
Backed by the full faith and credit of the U.S. government
Funded by premiums paid by banks
Has survived multiple financial crises
No depositor has ever lost insured funds due to an FDIC failure
That federal backing is the key structural difference.
What If a State Goes Bankrupt?
A key distinction:
U.S. states cannot declare bankruptcy under current federal law the way cities can.
However, states can:
Face severe liquidity crises
Experience credit downgrades
Default on certain obligations
Cut services
Delay payments
If a state-backed bank is insured only by the state and the state experiences fiscal distress, repayment becomes a political decision rather than a federally guaranteed obligation.
“Never happened” does not equal “impossible.”
Key Questions to Ask Before Supporting a State Bank
Before supporting one, demand clarity on:
Is it FDIC insured?
If not, what is the legal guarantee structure?
Is there a segregated reserve fund?
What is the capital ratio?
Is there independent oversight?
What happens if the state credit rating is downgraded?
Are deposits legally senior to other state obligations?
Balanced Conclusion
A state bank can be a strong policy tool for:
Infrastructure lending
Lower-cost student loans
Partnering with community banks
Keeping interest revenue inside the state
But the deposit insurance structure is critical.
If I were evaluating one, my baseline would be:
✔️ Must be FDIC insured
✔️ Must have strong capitalization
✔️ Must be politically insulated
Without FDIC insurance, the risk profile shifts from financial risk to political and fiscal risk.
Mike, you may want to read this article a little more closely. You may have missed its message.
I believe that the article was intended to demonstrate the power of the people to create change in government in general, not to establish a state banking system.
I understand it's purpose, but i though it is important to point out the optics and differences if we are going to apply pressure to any state to create change in any way - including a state bank since this atrical discussed that particular item
Hmm, I can't agree. The idea of a state bank is very powerful. There is only one. That's not for want of trying! Many states have tried, and as Chris describes in Washington, wow there are obstacles.
I liken it to someone like me going into the souk and bargaining with the carpet seller. He started watching his daddy and uncles when he was 5, and has been bargaining every day, 6 days a week for years. I'm going to get that carpet at the price he wants.
The people who wrote that document in a ND farmhouse were under extreme duress. As were all their peers. And they had a single enemy and a focused "ask." That's how they organized to sweep out the old political order.
I am beginning to tease my brain: what would be the equivalent in VA now?
This is an inspiring story, but also a wake-up call. Yes, it's better to be in a blue state, but we can do a lot better in building a government that works for everyone, not just the well-heeled and well-connected.
I don't want to support this administration and all its evil doings and yet it's tax time again so what can be done? I'm just so angry that my money is financing the horrific abuse of my neighbors and the collapse of our democracy yet what choice do I have? I've written to my Washington state governor and reps over and over again, even to governors and reps in other states, asking them to put Christopher's plan for putting our taxes into an equity account until the feds shape up (or ship out) into action, yet I hear nothing in return. I'm considering adopting that plan all on my own but I'm not sure one person's refusal will make any difference. Does anyone else feel trapped in this moral/ethical/existential dilemma?
Henry Thoreau addresses exactly this question in "Civil Disobedience."
His conclusion was that we don't refuse because it will work. We refuse because we can't give our money/resources for them to be used in horrific ways because that is a form of complicity.
He himself refused to pay poll taxes that funded the Mexican American War. This led to his incarceration and he had no regrets because he stood by his morals.
The oligarchs and superpacs are at the root of so much that is wrong with the country. Efforts to reign in the super-rich are essential to return to our republican democracy roots.
That's Democratic Republic, Representative Democracy - not Republican Democracy. LOL
I think you need to run for office. Your ideas are exactly what’s needed now but who is taking that ball and running with it?? Thank you for continuing to point the way!
Thank you. I appreciate your hard work, especially the very detailed information about how things CAN be done.
I think that your message is that, it is past time for governors, at least the blue state governors, to reassert their sovereignty and tell the Federal Government to go fish, and that includes redirecting all taxes that would go to the Federal Government to a State Bank.
It can be done. The Constitution acknowledges that the several states are sovereign, and that the only laws that apply across the states, are the ones that the several states have by majority vote, agreed to.
If, the states do not have any control over income taxes being withhold and transmitted to the IRS, for private companies, they certainly do for State and Municipal employees.
And they should disband the National Guard in the state, and re establish it as State Defense Force (aka state militia), Maryland had one, but it is currently all volunteer.
If all Blue states acted in unison, then the Trump regime would be hard pressed to do anything, as the only coercive force it has it the Federal Budget.
In the meanwhile. Governors should be more proactive, as regards ICE and CBP. Instead of merely issuing directives, such as Shapiro of Pa, has done or Wes Moore of MD, that the state should not assist ICE, they should issue directives that the police authorities protect the citizens against harrassment, and attack by masked and armed thugs, and arrest same with caught in the act.
That they haven't already,puts a lie to their verbal posturing.
At a minimum, the murderers of Good and Pretti, should have been arrested on the spot.
The fact that they are federal employees does not grant them immunity.
An enlisted member or officer of the armed forces cannot assault or murder citizens with impunity, so why are Governors, Attorney Generals, County and city prosecutors allowing these crimals to get away with murder? Cowardice,, is my good faith reply.
My son was a career military intelligence person and he taught me one thing;
Better to justify existence than ask for permission to exist.
In a nutshell, it's what that bank did and the bottom line is proof of concept far outweighs theory every time.
The official name for the sort of situation Chris is describing is “regulatory capture” and it happens often, across many industries. It occurs in large part because the US political system runs on money. Large, organized entities like businesses often have that money in abundance. They also invest some of those funds in professional advocates (aka lobbyists) who are well versed in the arguments their employers wish to make to elected officials. Since as a country we don’t actually support of political leaders all that well (they don’t have the kind of staff and expertise they need), lobbyists often wind up filling the gap. I’ve personally watched this happen over the twenty-plus years I’ve been involved with public policy.
One of the big fixes for this would be publicly funded elections. That would dramatically reduce the time and effort elected legislators need to devote to raising money. Providing for better pay for the legislative aides who do most of the heavy lifting in a legislator’s office would be another. Right now, these folks tend to be both massively overworked and underpaid. They do the job for a few years, then usually leave to become lobbyists themselves. Its’s a revolving door that doesn’t provide much benefit to the voters.
To put it succinctly, in this country money is the measure of all things.
Thank you for this thoughtful, knowledgeable, referenced piece. Your points make sense to me, are hopeful in their direction and powerful in scope. Since I, as example, have no expertise in this arena, nor affiliation, except as citizen invested in democratic principles, your work may in fact be accessible to many. I hope so. Passing it on. Thank you.
Remember when the USPS had banking? Polls (and I believe these) showed huge support to going back to that. Instead, post offices have been closed at a rapid pace purposely. State banking makes perfect sense.
As always, a powerful and challenging post.
Can public support be gathered to promote effective and determined action? This seems a relatively simple step to regain community and state power and put 2 fingers up to the national corporate businesses.
It just needs courage and confidence and tenacity. Has that been lost along the way?
Check out "Grab Them By The EARR: How to get politicians to do what you want" it covers the Educate Activate Recruit Repeat framework for building public support and dismantling fascism. That's a booklet covering our most up to date tactics. Physical copies available for purchase at TheExistentialistRepublic.com and free pdf available in the shop at BuyMeACoffee.com/TheER .
Thanks 😊
If elections are involved, it also needs accurately-counted ballots.
Thanks again, Chris, for inspiring us to take up the challenge!
Onward to our state governments!
If North Dakota farmers can build a state bank, we can get our states to investigate and prosecute pedophiles, outlaw bribery, and rein in corporate governance!
Thank you for putting this together.
Simply outstanding! Well done Christopher
Attack! “The courts caught up.”
State banks are a great idea but must be FDIC insured otherwise we are dependent on the state resources which are in some cases not very strong
A. Fully State-Guaranteed (Not FDIC)
If a state creates a bank and chooses not to use FDIC insurance, deposits may instead be backed by:
State treasury
State guarantee fund
Legislative appropriation
This is where your concern becomes very real.
If the state experiences:
Budget collapse
Pension crisis
Major recession
Political refusal to fund guarantees
Then depositors could face:
Delays
Partial repayment
Political fights over honoring guarantees
Unlike FDIC insurance, there is no automatic federal backstop unless Congress intervenes.
B. State-Owned Bank That Is FDIC Insured
Some state-owned banks still participate in FDIC insurance.
Example:
Bank of North Dakota
It is state-owned
It is FDIC insured
It has operated since 1919
It has been profitable for over a century
In this model, deposits are protected federally, not just by the state.
How FDIC Insurance Works
The Federal Deposit Insurance Corporation (FDIC) insures deposits at $250,000 per depositor, per institution.
Important points:
Backed by the full faith and credit of the U.S. government
Funded by premiums paid by banks
Has survived multiple financial crises
No depositor has ever lost insured funds due to an FDIC failure
That federal backing is the key structural difference.
What If a State Goes Bankrupt?
A key distinction:
U.S. states cannot declare bankruptcy under current federal law the way cities can.
However, states can:
Face severe liquidity crises
Experience credit downgrades
Default on certain obligations
Cut services
Delay payments
If a state-backed bank is insured only by the state and the state experiences fiscal distress, repayment becomes a political decision rather than a federally guaranteed obligation.
“Never happened” does not equal “impossible.”
Key Questions to Ask Before Supporting a State Bank
Before supporting one, demand clarity on:
Is it FDIC insured?
If not, what is the legal guarantee structure?
Is there a segregated reserve fund?
What is the capital ratio?
Is there independent oversight?
What happens if the state credit rating is downgraded?
Are deposits legally senior to other state obligations?
Balanced Conclusion
A state bank can be a strong policy tool for:
Infrastructure lending
Lower-cost student loans
Partnering with community banks
Keeping interest revenue inside the state
But the deposit insurance structure is critical.
If I were evaluating one, my baseline would be:
✔️ Must be FDIC insured
✔️ Must have strong capitalization
✔️ Must be politically insulated
Without FDIC insurance, the risk profile shifts from financial risk to political and fiscal risk.
Mike, you may want to read this article a little more closely. You may have missed its message.
I believe that the article was intended to demonstrate the power of the people to create change in government in general, not to establish a state banking system.
I understand it's purpose, but i though it is important to point out the optics and differences if we are going to apply pressure to any state to create change in any way - including a state bank since this atrical discussed that particular item
Hmm, I can't agree. The idea of a state bank is very powerful. There is only one. That's not for want of trying! Many states have tried, and as Chris describes in Washington, wow there are obstacles.
I liken it to someone like me going into the souk and bargaining with the carpet seller. He started watching his daddy and uncles when he was 5, and has been bargaining every day, 6 days a week for years. I'm going to get that carpet at the price he wants.
The people who wrote that document in a ND farmhouse were under extreme duress. As were all their peers. And they had a single enemy and a focused "ask." That's how they organized to sweep out the old political order.
I am beginning to tease my brain: what would be the equivalent in VA now?
If you do t try it will never be done
This is an inspiring story, but also a wake-up call. Yes, it's better to be in a blue state, but we can do a lot better in building a government that works for everyone, not just the well-heeled and well-connected.
I don't want to support this administration and all its evil doings and yet it's tax time again so what can be done? I'm just so angry that my money is financing the horrific abuse of my neighbors and the collapse of our democracy yet what choice do I have? I've written to my Washington state governor and reps over and over again, even to governors and reps in other states, asking them to put Christopher's plan for putting our taxes into an equity account until the feds shape up (or ship out) into action, yet I hear nothing in return. I'm considering adopting that plan all on my own but I'm not sure one person's refusal will make any difference. Does anyone else feel trapped in this moral/ethical/existential dilemma?
Henry Thoreau addresses exactly this question in "Civil Disobedience."
His conclusion was that we don't refuse because it will work. We refuse because we can't give our money/resources for them to be used in horrific ways because that is a form of complicity.
He himself refused to pay poll taxes that funded the Mexican American War. This led to his incarceration and he had no regrets because he stood by his morals.