One term Hillary
I agree with your post about the prediction that our economy’s growth will continue to be anemic held that way under the pressure of keeping deficit spending down. In other posts you have lauded the fact that our slow and steady growth is “the new reality”, and not that bad. We are not finished with this process and this “new reality” may not be over during our lifetimes. The good part is that there will be no rapid growth spurts, nor the otherwise inevitable recession, punctuated by the tossing people by the hundreds of thousands, out of work. “Slow and steady wins the race”, I say. You predict this will cause a change in leadership and outrage by the monied class.
Finally my question. There are folks that would like to have congress and the POTUS to create a “public bank”. Would a national public bank, that is only empowered to loan to public institutions (states, counties, cities, national and state infrastructure projects for some examples), solve the lack of investment in the USA problem?
I would not like to see the government’s public bank fund general lending since I think it is important to keep a sort of “separation of church and state”. The reason is that we want to keep the private banks in business funding private investment and keep at bay the argument that we “can’t trust” government from picking and choosing who gets the moolah. The national public bank could be “owned” by the Treasury and run by the Fed backed by the trillions in bonds that are on the Fed’s balance sheet. It would be impossible for the bank to go broke. The loans would need to be given scrutiny via a local political process, not federal, the interest paid would go back to the Treasury and reduce the size of underfunded future liabilities of Uncle Sam.
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