The Penny King Advises Gov Schwarzenegger

The Penny King Advises Governor Arnold Schwarzenegger to Form the Central Bank of California

by

Alex S. Gabor, Associated Content, July 10, 2009

What is the Bank of Pen?

When you begin to realize that there are more than an infinite number of currencies possible in this universe, it becomes very obvious that the powers that be on this planet are not much wiser than a child when it comes to managing the global resources available to an 8.8 billion and growing population called humanity.

Lately California has been issuing a form of its own currency called warrants that pay interest to deal with the implosion of the value of the United States Dollar which is quickly being run out of every town on the West Coast by the growing Bank of Pen.

To Quote Arnie as his friends in high places call him, "I understand that these cuts are very painful and they affect real lives.

"This is the harsh reality and the reality that we face.

"Sacramento is not Washington - we cannot print our own money. We can only spend what we have."

Governor Arnold Schwarzenegger quoted in Time, May 22, 2009

With lawmakers in Sacramento still in a big tizzy fight about how to solve the collapsed real estate industry, construction industry, and plummeting property prices in California, particularly the Sacramento area as if some message from the infinite were being swept into political offices everywhere, which same said industries are in a form of a death spiral due to federal laws that makes more cents for people to walk away from their underwater homes than to keep paying exorbitant interest rates on money that was created out of thin air, just like the warrants being issued by California's Treasury Department to make payments on everything from salaries to sandwiches.

At the Bank of Pen, any interest rate above zero is considered exorbitant according to the Penny King, founder and Chief Executive Officer of the fledgling talent bank known in most countries of the world as the Bank of Pen!

"Wake up Govna, Christmas has come early this year mate, Pay attention sweet big fat Govna, You CAN print your very own money.

Fiscally solvent North Dakota is doing it and so can California. Now!!!

"You should just declare a statewide emergency and issue emergency excretive orders throwing out all the bankers and lawyers who created the global mess that live in California and form your own Central Bank of California.

"We would be glad to become correspondent lenders under our zero interest rate policy regime", said the Penny King in a public statement before a large crowd of university students in Seattle's University of Washington District.


In a May 22 article in Time titled "Billions in the Red: Fiscal Reckoning in CA," Juliet Williams reported that California voters have vetoed higher taxes and further state government borrowing.

Governor Schwarzenegger has indicated that he intends to close the budget gap almost entirely through drastic spending cuts not only because the voters have locked California out of the global bond markets, but the global bond markets, despite all rhetoric by the Financial Times of London, and the Wall Street Journal of New York, the two biggest financial mouthpieces causing the pumping and dumping of stocks and bonds by the trillions on a daily basis, is still totally, utterly and completely worthless.

"After all, more and more people are coming to realize they were all just figments of bankers and lawyers imaginations, these things they called bonds, and derivatives and all sorts of other electronically issued blips and blaps they believed at one time was worth trading as some sort of international new world order currency that no common man gives a rats ass about!" said the Penny King to the mainstream media in America!

"The cutbacks include laying off hundreds of thousands of state workers and teachers, ending the state's main welfare program for the poor, eliminating health coverage for about 1.5 million poor children, halting cash grants for about 77,000 college students, slashing money for state parks, and releasing thousands of prisoners before their sentences are finished", according to Williams.

"Schwarzenegger bemoaned the fact that the state could not print its own money but said it could only spend what it had, said Williams in her Time Magazine article.

But the state can create its own money. After all, banks do this every day.

Anyone, not just government certified, card-carrying bankers are allowed to do something which the bankers have convinced everyone else nobody else can do.

Anyone can create "credit" with accounting entries on their books.

As the Federal Reserve Bank of Dallas explains on its website:

"Banks actually create money when they lend it."

Here's how the Bank of Pen works just to illustrate the simple idiocy and moronic simplicity of banking.

Most of a mainstream bank's loans are made to its own customers and are deposited in their checking accounts.

At the Bank of Pen, which is sponsored by the Infinite Freedom Foundation of King County, one simply deposits their pennies and gets credited a dollar for each penny thus deposited.

The Penny's are stored in a secret location where only the Chairman of the Board of Directors and the Exclusive Registered Agent of the Foundation know where that location exists.

In regular banking using the Federal Reserve System, because the loan becomes a new deposit, just like a paycheck does, the bank holds a small percentage of that new amount in reserve and again lends the remainder to someone else, repeating the money-creation process many times."

President Obama acknowledged that banks create money, through what he calls the "multiplier effect." In a speech at Georgetown University on April 14, 2009 he said:

"There are a lot of Americans who understandably think that government money would be better spent going directly to families and businesses instead of banks - 'where's our bailout?,' they ask - the truth is that a dollar of capital in a bank can actually result in eight or ten dollars of loans to families and businesses, a multiplier effect that can ultimately lead to a faster pace of economic growth."

"Unfortunately that is called inflation and all they have done is taken about $50 trillion out of the global market which was inflated way above a quadrillion dollars at one point in 2005 before the financial tsunami hit, and then recreated another $2 trillion as the illusion of a bailout continues unabated!, said the Penny King.

Money in a government-owned bank could give us the best of both worlds. We could have all the credit-generating advantages of private banks, without the baggage cluttering up the books of the Wall Street giants, including bad derivatives bets, unmarketable collateralized debt obligations, mark to market accounting issues, oversized CEO salaries and bonuses, and shareholders expecting a sizeable cut of the profits," according to Williams.

"At the Bank of Pen all customers and depositors are treated equally. If you donate your time and talents to the organization, you get credited a dollar per penny deposited and a dollar per second of your precious valuable time, and as long as the bank keeps growing with depositors and talents being utilized to produce other valuable final products which can be exchanged for dollars and cents, or other infinite mediums of exchange, you've got yourselves a banking system, a currency system or a system that allows trade to happen. That is all any bank is. A barter bank!" All that according to the Penny King, Sovereign Ruler of the Kingdom of Pen!

According to Williams, "A state could deposit its' vast revenues in its own state-owned bank and proceed to fan them into 8 to 10 times their face value in loans.

"Not only would it have its own credit machine, but it would control the loan terms.

"The state could lend at ½% interest to itself and to municipal governments, rolling the loans over as needed until the revenues had been generated to pay them off.

According to Professor Margrit Kennedy in her 1995 book Interest and Inflation-free Money, "interest composes, on average, fully half the cost of every public project. Cutting costs by 50% could make currently-unsustainable projects such as low-cost housing, alternative energy development, and infrastructure construction not only sustainable but actually profitable for the government."

If all this seems too radical and unprecedented to venture into, consider that one state has had its own bank for 90 years; and it has not only escaped the credit crunch but is doing remarkably well.

THE INNOVATIVE BANK OF NORTH DAKOTA

Only three of fifty states are now solvent, while 47 are bankrupt, meaning they have not the revenue to pay their bills, said the Penny King.

To be solvent requires that you have the revenues to meet your state budget; one of the three solvent states happens to be North Dakota, where Karl Chromy was born (another story on him later).

Since 2000, North Dakota's GNP has grown 56%, personal income has grown 43%, and wages have grown 34%. The state not only has no funding issues, but this year it actually has a budget surplus of $1.2 billion, the largest it has ever had.

"I'm telling them to start loaning money to their people for housing at zero interest, that will draw a nice migration of people further away from the inflated cities, and cause a greater growth ripple effect through to the mainstream economy and the underground one as well, said the Penny King.

North Dakota has the only state-owned bank in the nation.

The Bank of North Dakota (BND) was established by the state legislature in 1919 specifically to free farmers and small businessmen from the clutches of out-of-state bankers, vulture mining capitalists and railroad men.

The bank's mission is to deliver sound financial services that promote agriculture, commerce and industry in North Dakota.

By law, the state must deposit all its funds in the bank, which pays a competitive interest rate to the state treasurer.

The state rather than the FDIC guarantees the bank's deposits, which are plowed back into the state in the form of loans.

The bank's return on equity is about 25%, and it pays a hefty dividend to the state, which is expected to exceed $60 million this past year.

In the last decade, the BND has turned back a third of a trillion dollars to the state's general fund, offsetting taxes.

The former president of the BND is now the state's governor.

The BND avoids rivalry with private banks by partnering with them.

Most lending is originated by a local bank.

The BND then comes in to participate in the loan, share risk, and buy down the interest rate.

The BND provides a secondary market for real estate loans, which it buys from local banks.

Its residential loan portfolio is now $500 billion to $600 billion.

Guarantees are also provided for entrepreneurial startups, and the BND has ample money to lend to students (over 184,000 outstanding loans).

It purchases municipal bonds from public institutions, and it backs loans made to new farmers at 1% interest.

The BND also has a well-funded disaster loan program, which helps explain how Fargo, when struck by a disastrous flood recently, managed to avoid the devastation suffered by New Orleans in similar circumstances.

North Dakota has also managed to avoid the credit freeze, through the simple expedient of creating its own credit.

It has led the nation in establishing state economic sovereignty.

In California and other states, workers and factories are sitting idle because the private credit system has completely failed and millions go unemployed not for lack of jobs, but for lack of proper management of our money systems.

An injection of new money from a system of publicly-owned banks on the model of the Bank of North Dakota would re-inflate the credit freeze and bring spring to the markets once again but only temporarily.

Ellen Brown developed her research skills as an attorney practicing civil litigation in Los Angeles. In "Web of Debt", her hottest book, she turns those skills to an analysis of the Federal Reserve and "the money trust." Ellen Brown contributed to this story and is a frequent contributor to Global Research.