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.

Untitled

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

Untitled 1

 

Is it time for Michigan’s Legislature to go Part-Time?

Full-Time Hypocrisy Just Say “YES” to a Part-Time Legislature

The taxpayers of Michigan would be better “served” with a part-time legislature and it would be more in line with the “Pure Michigan” theme. Michigan legislators worked (in session) only 81 days during 2012 and 100 days in 2011; pay them accordingly.A Part Time Legislature

The way it’s set up now only works for the legislators, the powerful “lobbyist” and “special interest” that contribute to their campaign coffers.  Essentially public policy is set by these groups over “We the People” who have elected them to represent and serve us. The public be damned.

The idea that they are working for us just does not cut it. The only thing they are working on is getting re-elected so that they don’t lose the gravy train they already enjoy along with their spot at the public “feeding” trough.

Many legislators constantly complain about people receiving welfare benefits without knowing their situations by claiming they are lazy and refuse to look for work. These legislators are in session for less than half of the 365 days a year, and yet receive all the benefits of a full-time worker.

They are nothing more than elected welfare recipients, getting all the benefits from the taxpayers in this state without having to show up for work.

Cornerstone Chamber of Commerce advocates for some semblance of legislative reform, especially in light of the fact that far and away the majority of states across the nation accomplish their work on a part-time basis and have for years.

Since they were able to pass 282 bills (that the majority of us didn’t want) in three weeks of the lame-duck session, three to four weeks is all they need to work. Cut their pay 75% with no more free public-paid health care. Maybe then the citizens of Michigan will finally get their money’s worth.

Feel the pain – it’s time for the part-timers to become part-time. Our illustrious Legislature is overdue to become part-time. Since they act like part-timers and meet so infrequently, let’s make them what they are: part-time! While we’re at it, reduce that over inflated salary to part-time status as well. It’s time these politicians feel the same pain we do with reduced incomes, higher taxes and less benefits.

With big money including “corporations as people,” controlling the legislative process representing the people of your district is a dream.

The only communication I receive from my legislator is a reply from a staff person telling me why my representative disagrees with my position or suggestion, if I receive even that. I have been told by my representative that I just don’t understand how the legislative process works! Oh but I understand all to well.
http://www.freep.com/article/20130204/OPINION04/302040006/Letters-Michigan-legislators-work-only-80-days-pay-them-accordingly

Let’s take a look just some of the wasted time spent by our elected lawmakers in Lansing shall we.

Here in 2014 while our legislators were “in session” Senator Rick Jones (R) got into a facebook exchange with the president of the Michigan Open Carry organization over the Remington Gun manufacturer building a plant in Alabama bringing that state over 2,000 jobs.

Looks to me like our legislators have way to much time on their hands! If they have the time while “in session” to surf the Internet and get into debates we need a part-time legislature.

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?A Legislative Polar Plunge

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

Sen. 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.”A Roger Kahn Pirate Patch

Michigan Senate Minority Leader Gretchen Whitmer, D-East Lansing, however, didn’t think very highly of the resolution. “I just want to thank the senator from the 32nd District for making the most compelling argument he could for a part-time legislature,” Whitmer said.
http://www.myfoxdetroit.com/story/22518808/michigan-to-officially-recognize-talk-like-a-pirate-day

Is now the time for Michigan’s Legislature to go part-time?

You bet it is! I and many I have conversed with all agree that the less time our elected officials spend in Lansing the less damage they can do! More time spent with constituents in their districts and their concerns and the less time spent with “lobbyist” and “special interest” that “pay” for their agenda to be advanced on public policy the better.

Is “Team” Snyder tied to Kawme Kilpatrick’s Criminal Enterprise?

Governor Rick Snyder’s economic “team” was one of several contractors who pumped millions into ex-Mayor Kwame Kilpatrick’s alleged criminal enterprise. Although the government hid the companies’ identities in the indictment, public records and interviews helped put names to aliases. The list of companies includes deep-pocketed donors and powerful executives. Hmmm… maybe that’s why the governor chose to abolish the “Nerd Fund” rather than to expose his donors?Kawme & Snyder

The companies involved are going to be needed by the FBI and the U.S. Attorney’s Office to help prosecute the case. “It’s always hard to say whether the payer of a bribe is culpable or a victim of the crime,” said Peter Henning, a law professor at Wayne State University and former federal prosecutor.

“Sometimes that’s hard to distinguish.” So far, most executives linked to the corruption probe have escaped indictment. Some witnesses were granted immunity and others are victims, U.S. Attorney Barbara McQuade said.

Among the contractors who were allegedly extorted to retain Bobby Ferguson as a subcontractor include Walbridge, a general contractor headed by John Rakolta Jr., a longtime area powerbroker who was recently named to the Michigan Economic Development Corp. (MEDC) by Snyder. Wayne County and its Building Authority has filed a law suit seeking to recover $154 million from 3 jail contractors including John Rakolta’s Walbridge.

John Rakolta’s film studio, Raleigh Film Studios in Pontiac was awarded taxpayer funded subsidies when this studio defaulted on it’s bond payments the taxpayers of Michigan are now on the hook for making those missed payments through the under funded state pension fund. These subsides were awarded through the “failed” MEDC prior to Rakolta being appointed to the MEDC board. Can you say conflict of interest?

As of Sept. 30, 2010, the Michigan Public School Employees’ Retirement System and the Michigan State Employees’ Retirement System were unfunded by $21.7 billion.

The “secrecy” and back-door “deals” are very suspect to say the least surrounding politicians, government, and businessmen and looks to be a scheme (scam) bilking the taxpayers of Michigan out of millions of tax dollars all for political and financial gains. Let’s just hope and pray that U.S. Attorney Barbara McQuade and her “team” continue looking down this rabbit hole of corruption and bring those businessmen and politicians to justice.
http://www.detroitnews.com/article/20101217/METRO/12170403&template=artiphone

Additional Sources:
http://www.crainsdetroit.com/article/20131031/NEWS/131039973/wayne-county-files-suit-seeks-to-recover-154-million-from-3-jail

Bob Ficano, John Rakolta And The Big Jail Problem
http://www.deadlinedetroit.com/articles/5094/bob_ficano_john_rakolta_and_the_big_jail_problem

Feds’ subpoenas target Wayne County business dealings
http://www.freep.com/article/20111117/NEWS02/111170499/Feds-subpoenas-target-Wayne-County-business-dealings

Wayne County Executive Bob Ficano replaces top officials (Romney related)
http://www.freerepublic.com/focus/f-news/2805204/posts

So, what was Schuette’s cut?
http://rightmi.com/old/www.rightmichigan.com/story/2013/11/4/113017/236.html

Suspicions sometimes followed after Kilpatrick, Ficano dealings along with John Rakolta
http://www.crainsdetroit.com/article/20120909/FREE/309099962/suspicions-sometimes-followed-after-kilpatrick-ficano-dealings

John Rakolta allegedly through media reports donated $10,000.00 to Democrat Bob Ficano’s campaign war chest only to receive the contract for the new Wayne County jail project.
http://bainreport.wordpress.com/2013/11/24/welcome-to-michigans-world-of-the-political-illusion/

Public Employee Pension Systems Raided To Pay Film Studio Bills
http://www.michigancapitolconfidential.com/18384

Michigan-Subsidized Film Studio Fails; State Pension Fund Had Guaranteed Loan
http://taxfoundation.org/blog/michigan-subsidized-film-studio-fails-state-pension-fund-had-guaranteed-loan

House Cuts $25M State Film Subsidies in Proposed Budget – Not So Fast Say’s Richardville
https://bainreport.wordpress.com/2013/04/26/house-cuts-25m-state-film-subsidies-in-proposed-budget-not-so-fast-says-richardville/

Report: State pension funds bankroll Pontiac studio; taxpayers lose on films
http://www.theoaklandpress.com/general-news/20130308/report-state-pension-funds-bankroll-pontiac-studio-taxpayers-lose-on-films

Michigan Pensions Cover Missed Bond Payment for Film Studio
http://news.heartland.org/newspaper-article/2012/02/02/michigan-pensions-cover-missed-bond-payment-film-studio