A State Bank: The Solution for Michigan Economic Stability and Prosperity By Dan Osterman

(Comment: by R Al Bain, Our legislators in Lansing continue to advocate and promote capital cronyism through the “Friends and Family” program along with the “Business Buddies” fund that’s not a good return on investment for the taxpayers of Michigan and only benefits the aforementioned and politicians in a pay to play scheme.)  Bank top left

When it comes to the economy, government does have a necessary and proper role to protect a functioning free market and the rights of individuals to pursue their economic interests, maintenance of public infrastructure, and the undisturbed flow of commerce across borders. 

Essential to these functions is to support a banking system that seeks to serve the community, act as an incubator for businesses, and to protect the system from those who attempt to abuse it.

The actions of the Federal Reserve System, in concert with the Wall Street bankers, has failed in its stated purpose, while repeatedly stealing the wealth of Americans; which has been felt no greater than in Michigan and in particular, Detroit.

If the Michigan legislature is serious about “reinventing” the state and reviving Detroit, their first priority should be a healthy and expanding community banking system, which can only be achieved by the establishment of a publicly-owned state bank. Bank middle right

There is no better model of success than the state of North Dakota; having the only state bank in the country. During the 2009 financial crisis, the Bank of North Dakota (BND) not only provided a dividend to the state but was responsible for North Dakota achieving the lowest unemployment in the nation, while maintaining the most community banks per capita; without a single bank failure.

In order for Main Street businesses to survive and begin to rebuild the lost wealth of Michiganians, a local community banking system will have to play a lead role; and a publicly-owned state bank, is the lynchpin to success. In a 2012 Dallas FED report by Gunther and Klemme it was stated, “Community banks are not only a major source of credit for job-creating businesses but also a stable one.”

A Michigan economic recovery will only be possible when the majority of the money which circulates through its economy, stays in Michigan, and is no longer siphoned away by Wall Street.

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Leveling the Playing Field – Federal Reserve Bank of Dallas Report
Financial reform must be redirected. The government’s financial safety net for the biggest banks should cover only their essential banking activities and their role in the payments system. Once that occurs, market discipline can reassert itself, and all institutions—large and small—can compete on a more level playing field.
http://www.dallasfed.org/microsites/fed/annual/2012/e5/1201e5.cfm

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Michigan as the “Comeback State” Defies Even Common Sense or Better Yet “Pure Propaganda”

Well it’s election season and the propaganda is in full force. Governor Rick Snyder is trying to redefine not only himself as the “Comeback Kid” reinventing Michigan calling it the comeback state, but the very term common sense. It is critical to the future of our state that voters not fall for either attempt. 

It has been pointed out by others and is still worth repeating: Working Michigan families have not experienced a comeback, and therefore the moniker “Comeback Kid” is laughable. The narrative of Snyder’s re-election ad rings decidedly flat for those still experiencing unemployment and under employment in Michigan.
http://www.detroitnews.com/article/20140219/OPINION01/302190004/Comeback-talk-defies-common-sense Comback Forbes on Snyder

Our state has the fourth highest unemployment in the nation, and almost 400,000 out-of-work “Michiganians” are still waiting for the governor to create “more and better” jobs. Michigan ranks near the bottom, 47th in the nation for not just unemployment but as one of the worst states for doing business.

High taxation, over regulation and crony capitalism is but a few of the issues keeping Michigan at the bottom in both of these categories.

Michigan ranks near bottom of Forbes’ Best States for doing Business
Forbes’ annual Best States for Business list as of year ending 2013 ranked Michigan at No. 47 of the 50 states.
http://www.crainsdetroit.com/article/20130925/NEWS/130929908/michigan-ranks-near-bottom-of-forbes-best-states-for-business-list#

Virginia ranked first and is also one of  the 24 right-to-work states that now includes Michigan. Areas that hurt Michigan’s rating included business cost (the state ranked no. 38), labor supply (no. 48), economic climate (no. 47) and growth prospects (no. 47).
http://www.forbes.com/sites/kurtbadenhausen/2013/09/25/virginia-tops-2013-list-of-the-best-states-for-business/

Business cost is based off Moody’s Analytics cost of doing business, which includes labor, energy and taxes. Labor supply measures educational attainment based off Census data and also considers migration and population projections.

Economic climate measures economic output as well as unemployment during the past five years. Growth prospects measures job, income and gross state product forecasts from Moody’s Analytics.
http://www.bls.gov/web/laus/laumstrk.htm

When our Republican controlled legislature is more concerned with the “Friends and Family” programs and the “Business Buddy Fund” along with legislation benefiting themselves and un-related to creating an environment conducive to job creation, “Houston We Citizens of Michigan Have a Huge Problem!”

Concentrating on such legislation as “A Mortgage Bill for the MIGOP Chairman’s Brother” and passing laws regulating “Pigeon’s” along with wasting taxpayer money and time on a legislative “Polar Plunge” during session is unconscionable.

But it just doesn’t end there. The state of Michigan continues to harass private small business owners such as Mark Baker and his “pig” farm. I guess Mr. Baker doesn’t donate to the campaign coffer’s of our elected official’s or have the clout that the Michigan Pork Producers Association does who pay through donations for access and favorable legislation from our legislators?

Michigan Judge Ruling: Mark Baker Can Raise His “Feral” Pigs, But What About Everyone Else?
The state of Michigan wasn’t seeking any longer to bar Baker from raising his pigs, and wasn’t seeking to impose the $700,000 fine it levied last year. But the damage to the Baker family was already done emotionally and financially.
http://thecompletepatient.com/article/2014/february/27/mi-judge-ruling-mark-baker-can-raise-his-%E2%80%9Cferal%E2%80%9D-pigs-what-about-everyone

Sources:
Retroactive state law lets GOP chairman’s brother off hook for $2.4 million
http://www.freep.com/article/20120331/NEWS15/203310415/

In Lansing, a mortgage bill tailored for one
http://www.freep.com/article/20120401/COL04/204010479/

2013 Senate Bill 631: Revise carrier pigeon licensure mandate (Senate Roll Call 53)
Passed 34 to 0 in the Senate on February 26, 2014.
To prohibit a person from getting a state-mandated carrier pigeon license if his or her facilities do not meet regulations imposed by the local government, but preempt locals from banning carrier pigeons outright.
http://michiganvotes.org/RollCall.aspx?ID=685602

2014 Legislative Polar Plunge
Lieutenant Governor Brian Calley Led State Officials in taking the Legislative Polar Plunge
Raising money for charity is an admirable cause but not on taxpayer time. If any Michigan worker were to do this as an employee at their work place do you really think their employer would go for it?

I don’t think so and they would be looking for a new job! Our elected officials are elected to serve all Michigan citizens and not just one special group.

This bipartisan group of legislators had a swimming pool brought in and filled with warm water to take this plunge in front of the Capitol building in Lansing. Some wore suits, some wore costumes such as superman and one was dressed as a German-Austrian with a stein full of beer. Keep in mind this was at 3:00 in the afternoon while “in session.”
http://www.adn.com/2014/02/27/3349135/calley-others-take-plunge-for.html

Video
http://www.youtube.com/watch?v=uu3HEXH2utU

2013 introduced a resolution for “Talk Like a Pirate Day”
Senator Roger Kahn, R-Saginaw Twp. in 2013 introduced a resolution for “Talk Like a Pirate Day” that was approved by his fellow legislators.

Khan celebrated the passage by taking the podium Tuesday while wearing a black eye patch and saying, “It’s time, and now recognized, that the state of Michigan acknowledges this holiday and grants it the recognition it truly deserves.”

Kahn pointed out that Michigan is the Great Lakes state and should support and promote “worthy maritime initiatives.”
http://michiganvotes.org/Legislation.aspx?ID=160886

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