POLITICAL: Every state should have a BND clone

Friday, January 31, 2025

https://www.lewrockwell.com/2025/01/no_author/beating-wall-street-at-its-own-game-the-bank-of-north-dakota-model/

Beating Wall Street at Its Own Game — The Bank of North Dakota Model – 

McMaken, Ryan

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So how is it that the state boasts the only state-owned bank in the nation? Has it secretly gone socialist?

No. The Bank of North Dakota (BND) operates on the same principles as any capitalist bank, except that its profits and benefits serve the North Dakota public rather than private investors and executives. The BND provides a unique, innovative model, in which public ownership is leveraged to enhance the workings of the private sector. It invests in and supports private enterprise — local businesses, agriculture, and economic development – the core activities of a capitalist system where private property and enterprise are central. Across the country, small businesses are now failing at increasingly high rates, but that’s not true in North Dakota, which was rated by Forbes Magazine the best state in which to start a business in 2024.

The BND was founded in 1919, when North Dakota farmers rose up against the powerful out-of-state banking-railroad-granary cartel that was unfairly foreclosing on their farms. They formed the Non-Partisan League, won an election, and founded the state’s own bank and granary, both of which are still active today.

*** and ***

The BND, on the other hand, is mandated to use its revenues for the benefit of the North Dakota public. Other states would do well to follow North Dakota’s lead.

*** end quote ***

I have blogged before about this “national treasure”.  It’s a working example of how to do State Banking for the benefit of the people.  No politics involved.  No big financial institutions lobbying local politicians.  AND, that is the EXACT reason why it’s near impossible to replicate.

As a little L libertarian, I’d like the smaller Gooferment possible and here is a way to get there.  

Maybe one of the candidates for Governor of the Pepuls Republik of Nu Jerzee will pick this up.

—30—

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MONEY: Why the BND is an important exemplar in the road back to liberty

Sunday, November 25, 2012

On Tuesday night’s Free Talk Live, a caller tried to make the case for the “Bank of Oregon” a la the “Bank of North Dakota”.

I thought the hosts didn’t understand the point he was making. (Yes, he made it very badly. As you would expect to a non-politician non-public speaker. Not that I’m any better. But, I think he was on to something.)

So I wrote up some stalking points and called in.

(As a long time AMPlifier and long time listener since back when the boys were in Flori-Duh fighting the good fight, I knew that they were going to be a tough “sell”. In retrospect, I should have prepped some more.)

Here are my points: 

# – # – #  

Why the Bank of North Dakota is important to secession and liberty:

(1) It’s a depository for all state tax collections and fees; The state itself and all state agencies do their banking with BND. Wrests control from politicians and their cronies on Wall Street.


(2) It plows the funds (I should have said “capital”!) back into the state in the form of infrastructure, farm, business, and student loans. Consistent with sound fiscal and banking practices.


(3) It acts as a bankers’ bank or a wholesale bank. So the BND provide services to banks, whether it’s check clearing, liquidity, or bond accounting safekeeping. It can subsitute for the Federal Reserve System. 


(4) It provides a dividend back to the state. In the case of BND that 60M$ or 50% of their annual profit. That’s profit that everywhere else goes to crony capitalism.


(5) It deprives the current Federal politicians and bureaucrats of the ability to inflate the currency. A state bank could introduce a hard currency or allow free market competition in currency. 



This could be a stepping stone to “killing” the FED. It is a way to “shrink” the problem. Replacing the FED with 50 State Banks is a good step on the road to liberty.

# – # – # 

Here’s the link to my “performance”; starts at the 1:18 mark and completes at the 1:32 mark.

https://www.freetalklive.com/content/podcast_2012_11_21

I must have done well because I got a huge chink of air time. At about the 45 mark of the second hour and held over as the first bock on the third hour.

So the hosts must have found me “interesting”.

As expected Ian, who is a raving Anarcho-Capitalist, immeidately went for the jugular, that he is against ANYTHING that the government does. (Me 2, but how does one change the status quo. It took 100 years to get into this mess; it’ll take a 100 to get out. The water erodes everything by the passage of time.) Ian, a more a pragmatic libertarian, was ore open to being convinced. Initially, the third host (Stephanie?) didn’t have anything to say; she joined in later on as she got the concept. 

I never got the feeling that they were “convinced”, but they did understand that it was not the absurd idea that came across by that prior caller. Two out of three seemed to like the conversation. So it wasn’t a bad experience. Next time I do it, I’ll be better prepared.

Any way listen to me as a “talk show caller” and give me your opinion.

# – # – # – # – #  2012-Nov-22 @ 10:43  

 

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POLITICAL: Why doesn’t EVERY State have their own version of BND?

Thursday, February 9, 2012

http://www.vtcommons.org/blog/taking-rich-and-giving-tothe-rich

Taking from the rich and giving to…the rich
Mike Krauss

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As I reported months ago in this column, the administration is preparing legislation to provide rental assistance to those who need housing.

In other words, those who still have jobs and a home will be taxed to support “home rentership,” to make sure that the 1 percent get paid for the homes they effectively stole and will now rent back to the 99 percent.

Who will, of course, have little left in their paychecks or unemployment checks to maintain those homes rented from suburban slumlords.

Kiss your neighborhood goodbye, Morrisville and Lower Makefield. The Ozarks are moving in.

Is there an alternative. Yes.

Cities and counties from California to Michigan, Ohio, western Pennsylvania, and even nearby Reading, are moving to use public funds — the common wealth — to form partnership banks that can not only get critically needed affordable credit flowing in local economies, but can also take vacant homes by eminent domain, and work with community banks, homebuilders, skilled trade workers, realtors and housing authorities to maintain these properties and put people back in them on affordable terms as owners, and rescue their communities from the pending Obama nation.

*** end quote ***

It would seem that everyone is forgetting the “Bank of North Dakota”.

It’s unique in all the States. And, only does business with Gooferment entities. Political subdivisions MUST bank with BND. And, it has specific programs to buy assets in North Dakota. So a farmer’s mortgage may be held by the BND. So to corporate loans, mortgages, and venture capital funding.

They are in essence a one state version of the Federal Reserve working for the benefit of “We, The People”.

Surprisingly, it works and is apolitical.

Why doesn’t EVERY “State” have one of these?

Cause the Federal Reserve System would be out of business in short order!

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