July 21st, 2011
Talk Nation Radio for July 21, 2011
Ellen Brown, Why Banks Don’t Lend, Liquidity Crisis
She discusses the potential for another banking industry crisis and looks at the solutions.
Download at Pacifica’s Audioport here or at Radio4all.net and Archive.org
Produced by Dori Smith in Storrs, CT
Music byFritz Heede
Ellen Brown joins us once again, to talk about her latest piece in Truthout.org, titled, Why Banks Aren’t Lending: The Silent Liquidity Squeeze. Ellen Brown is author of the 2009 book Web of Debt, you can find it online at webofdebt.com. She is also Chair and President of the educational Public Banking Institute, a non profit think tank at: publicbankinginstitute.org.
The U.S. Government bail out known as TARP failed to provide needed resources through loans from banks. Instead, banks hoarded cash, contributing to the national and international liquidity problem. Ellen Brown reported recently in Truthout.org that, "A stunning $1.6 trillion in excess reserves has accumulated in bank reserve accounts since the collapse of Lehman Brothers on September 15, 2008". Corporations are doing the same. Cisco, a technology company, has reported anywhere from 40 and 44 billion in cash reserves over the past year, yet they are carrying out an "austerity program" of layoffs, sending out over 6,000 pink slips. What is the company using their money for? Stock buybacks, and yet they do not provide dividends to share holders. Cisco is also closing one of their plants. Ellen Brown explains how the liquidity problem contributes to job loss and failure of small businesses to grow.
Ellen Brown’s earlier articles had titles like: “Turning the tables on Wall Street, and North Dakota shows Cash-Starved States, How they can Create their own Credit. She is a proponent of the state banking system in place in North Dakota she says has made that state solvent. Without some form of strong measures, the nation could be facing yet another banking and financial institution crisis.
In the time since we last spoke with Ellen Brown, many states have turned to the state bank model as a potential source of hope as American towns, cities, and states, face record short falls. Fourteen states have bills pending to either create a state bank or do a feasibility study to develop one.
We reached Ellen Brown in London, she is en route to Malaysia where she was invited to speak at a conference. She will speak at the Global Table, the local money reform group in London, as they consider a bill pending in the British Parliament.