Single Bank

Single Bank

OP-ED

         Only 4 banks conduct 80% of our banking business in America today. They are still allowed to play the market and sell insurance, the very non-banking activities that caused our recent economic collapse and heavy job loss and put us $40 trillion in debt. Under The Valentine Constitution banks will do banking, nothing more. Since mergers create monopolistic advantages, why not do the final merger, of all banks into one, and avail ourselves of those advantages. The Valentine Constitution creates a single public utility bank operating online only to save us all the costs now passed on to customers for obsolete physical bank branches: land, buildings, rent, payroll, utilities, equipment, supplies and parking. Cash and ATMs will also be abolished saving us those fees and hassles while rendering criminals, racketeers and illegal aliens inoperative. PayPal and portal type fees now paid for online transactions will not exist since the internet will be one big buy/sell portal for all Citizens with no fees other than the 5% transaction tax.

         Under The Valentine Constitution each Citizen would have a single bank account whose information would be accessible only by permission of the Citizen or by court order. Credit scores will be always available for free. Just log into your account, and click a button and how much of a loan you can get will be determined for you in seconds. Wall Street sucker tricks are designed to keep us in the dark so they can make easy money and keep us from competing with them. We don’t need bankers or insurers to enter our data into programs for us, we can do that at home and will be able to in our single account without having to go to the bank and get charged in fees for the hassle. Nor will there be an “inquiry” penalty for trying to qualify for a loan since credit reporting agencies like Equifax and Transunion and Experian will all be abolished.

         All savings would be FDIC-like insured for the total amount deposited without limit. Why have a limit? Either the bank is safe or it is not. Today rich people waste time getting CDs at numerous branches to stay within the limit when they could spend that time making money and creating jobs. T-bill type instruments in any amount will be available to Citizens in their single account so they can make interest without risking their principal.

         Today banks make most of their money from TWO “SPREADS”: (1) interest on money transferred from one customer to another waiting to be made “available”, (2) interest on the $33,000 they get to loan out for every $1,000 deposited, paying savers 2% and charging borrowers 5%. Neither will be allowed under The Valentine Constitution. To generate the other $32,000 dollars, banks use the leverage of our Federal Reserve and Treasury backed by our nation’s credit guaranteed by the unassailable fact that each and every year Americans will pay $10 trillion in total taxes!, an economic phenomenon unequaled on earth. But only Wall Street and Banks get to use the leverage. What if we got to use that leverage? We’re all borrowing and saving and earning each other’s money, and leveraging the collective pool of money contributed by taxpayers, savers, borrowers, the insured and so on. With insurance we all cover for each other to spread the cost of the occasional accident out over the years between accidents (and are getting ripped off there too). Between savings, downpayment, collateral and the interest they make off their loans banks should be able to cover the little remaining risk. Instead they’re passing the risk onto us and keeping the profits! Why give Wall Street kings and queens the financial power we make possible? Because the full faith and credit of the USA has been sold by politicians for the price of a campaign contribution. No rocket science is going on here, just bond markets and corruption.

         The Valentine Constitution eliminates these and other money games and replaces them with a simple, fair, free market, public utility bank. Doing simple, old fashioned banking only, the public utility banking system allows our Citizens to use the full faith and credit of the US to their advantage rather than giving it away to Wall Street derivative gamblers who use it to crash our economy and then make us bail them out. All sorts of games and rip offs are going on using our savings, our pensions, our taxes and our assets. And most people don’t have a clue, because instead of being IN the game, they’re AT the game! Valentine skipped all the games, and wrote a Constitution instead.