WEBVTT 1 00:00:06.200 --> 00:00:07.839 It's the Opperman Report. 2 00:00:08.320 --> 00:00:12.240 Join Digital Forensic Investigator in PI at Opperman for an 3 00:00:12.240 --> 00:00:16.920 in depth discussion of conspiracy theories, strategy of New World 4 00:00:17.079 --> 00:00:21.519 Order resistance, hi profile court cases in the news, and 5 00:00:21.679 --> 00:00:26.079 interviews with expert guests and authors on these topics and more. 6 00:00:26.600 --> 00:00:33.119 It's the Opperman Report and now here is Investigator at Opperman. 7 00:00:37.280 --> 00:00:40.560 Okay, welcome to the Opperman Report. 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Okay, we're joined by 50 00:02:56.159 --> 00:03:01.000 David Jetty and he's from the public, the California Public 51 00:03:01.080 --> 00:03:03.719 Banking Alliance. Okay, so I'm going to ask them more 52 00:03:03.759 --> 00:03:06.400 about this public banking stuff that's going on here. Mister Jeddy, 53 00:03:06.439 --> 00:03:07.000 are you there? 54 00:03:09.560 --> 00:03:11.159 I am, Thank you for having me on it. 55 00:03:11.240 --> 00:03:13.159 Thank you so much, and so tell us about yourself. First, 56 00:03:13.159 --> 00:03:14.360 Who is David Jenny. 57 00:03:17.800 --> 00:03:22.400 Well. I live in LA I am an activist and 58 00:03:22.719 --> 00:03:28.800 financial analyst, an entrepreneur. I've been working in the nonprofit 59 00:03:29.240 --> 00:03:36.719 sector for I guess fifteen years. First in the arts. 60 00:03:37.759 --> 00:03:41.960 I also have a career. My bread and butter career 61 00:03:42.000 --> 00:03:45.560 is in finance. I work in tech finance, starting up 62 00:03:45.599 --> 00:03:51.680 and managing operating businesses and investing across real estate and 63 00:03:53.120 --> 00:03:59.120 and certain lending industries. My exposure to that, plus my 64 00:04:00.199 --> 00:04:03.240 sort of re joining of the fight, so to speak, 65 00:04:04.520 --> 00:04:06.560 after the Obama years where a lot of us kind 66 00:04:06.560 --> 00:04:10.400 of fell slakedly if I did it came back around occupy. 67 00:04:11.039 --> 00:04:14.319 I found a way to kind of make my knowledge 68 00:04:14.520 --> 00:04:19.160 of the finance world and my interest in monetary policy 69 00:04:19.319 --> 00:04:25.040 and socialist political economics to apply myself to a couple 70 00:04:25.079 --> 00:04:27.759 of areas I thought I could do. Some good. Public 71 00:04:27.800 --> 00:04:32.759 banking came up thanks to the efforts of very committed 72 00:04:32.800 --> 00:04:36.759 and talented organizers here in LA who came out of 73 00:04:36.800 --> 00:04:43.639 the Dakota Access pipeline fights. I'm sorry Dakota Access, Yeah, 74 00:04:43.680 --> 00:04:49.000 and of course the indigenous rights movement to divest from 75 00:04:49.439 --> 00:04:53.920 banks and industries that contributed to the to the traategy 76 00:04:53.959 --> 00:04:58.240 of standing Rock folks here at the time, known as 77 00:04:58.279 --> 00:05:03.360 divest LA pushed for our city, Los Angeles to divest 78 00:05:03.360 --> 00:05:06.240 from Wells Fargo, which was a primary finance partner of 79 00:05:07.079 --> 00:05:13.839 that pipeline, and succeeded. And the natural question was, well, 80 00:05:13.959 --> 00:05:16.920 if we can't put our money in Wells Fargo because 81 00:05:17.160 --> 00:05:21.560 it's destroying the environment, violating the law, then where can 82 00:05:21.560 --> 00:05:26.639 we put it? And thanks to the ever present work 83 00:05:26.680 --> 00:05:32.199 of folks like Alan Brown and the Public Banking Institute. 84 00:05:32.600 --> 00:05:35.800 Organizers here in LA found public banking to be the 85 00:05:35.839 --> 00:05:39.959 next sort of natural step of both divestment and as 86 00:05:40.000 --> 00:05:43.120 a cure for a lot of what ails our state 87 00:05:43.319 --> 00:05:50.920 around housing equality and climates. At the station public banking 88 00:05:52.480 --> 00:05:56.199 I feel and the reason I'm committed to it, as 89 00:05:56.360 --> 00:06:00.360 you know in my spare volunteer time volunteer activist, is 90 00:06:00.399 --> 00:06:05.079 because I think it can be a bedrock for the 91 00:06:05.240 --> 00:06:10.519 reinstitution of public goods into American life. We have gone 92 00:06:10.519 --> 00:06:15.160 through an air of liberalization and privatization which has stripped 93 00:06:15.720 --> 00:06:18.959 most of the things that belong to the people and 94 00:06:19.079 --> 00:06:22.959 turn them into financial products and commodities which are designed 95 00:06:23.000 --> 00:06:26.079 to benefit a very few number of people. And it's 96 00:06:26.120 --> 00:06:28.199 my firm belief and a lot of people that I 97 00:06:28.240 --> 00:06:32.279 work with that we need to re establish commonwealth as 98 00:06:32.279 --> 00:06:37.319 a first step to decommodifying our economy and putting our 99 00:06:37.439 --> 00:06:39.959 energy toward things that restore the earth instead of destroy it. 100 00:06:40.680 --> 00:06:42.360 Can you explain to you what it is exactly? What 101 00:06:42.480 --> 00:06:43.319 is a public bank? 102 00:06:46.639 --> 00:06:50.279 A public bank is? I mean, in the simplest definition, 103 00:06:50.399 --> 00:06:53.560 is a bank owned by a public entity as opposed 104 00:06:53.600 --> 00:06:58.720 to private shareholders. So, for example, I could compare two banks. 105 00:06:59.279 --> 00:07:02.639 Let's take as Manhattan Bank or JP Morgan Chase, which 106 00:07:02.680 --> 00:07:06.279 is an investments bank out of New York City, and 107 00:07:06.319 --> 00:07:09.120 the Bank of North Dakota, which is a publicly owned 108 00:07:09.399 --> 00:07:14.399 state bank in the state of North Dakota. JP Morgan 109 00:07:14.480 --> 00:07:19.040 Chase is owned by its shareholders, which you know, the 110 00:07:19.160 --> 00:07:22.120 vast majority of those shares are held by a relatively 111 00:07:22.160 --> 00:07:25.639 small number of people who appoint the board of those banks, 112 00:07:26.079 --> 00:07:29.560 and that board makes decisions about how trillions of dollars 113 00:07:29.639 --> 00:07:34.560 is invested across multiple national economies. This is how our 114 00:07:34.600 --> 00:07:38.720 economy is organized at its very highest level is by banks, 115 00:07:38.759 --> 00:07:41.920 and the banks that manage the money of very wealthy 116 00:07:41.959 --> 00:07:46.079 people and itstitutional investors. The Bank of North Dakota is 117 00:07:46.560 --> 00:07:49.680 the longest running public bank in the United States, is 118 00:07:49.680 --> 00:07:52.879 currently the only public bank that's in full operation. It 119 00:07:52.959 --> 00:07:57.319 was founded in let's see, it's in one hundred years 120 00:07:57.319 --> 00:08:01.720 in nineteen nineteen, one hundred years old, and it is 121 00:08:01.759 --> 00:08:05.839 owned entirely by the people of North Dakota. By law, 122 00:08:07.040 --> 00:08:10.040 all public deposits of governments of state and local governments 123 00:08:10.040 --> 00:08:12.680 in North Dakota must be deposited in the public bank 124 00:08:12.680 --> 00:08:16.519 in North Dakota, and that bank operates essentially as a 125 00:08:16.519 --> 00:08:19.920 wholesale bank, right doesn't have tellers or ATMs, not really 126 00:08:19.959 --> 00:08:23.639 has a couple, but mainly what it does is it 127 00:08:23.759 --> 00:08:29.560 packages loans and participates with community banks and banks that 128 00:08:29.600 --> 00:08:34.360 are focused locally and even owned locally to targeted investment 129 00:08:34.399 --> 00:08:38.279 areas that improve the state for the people that live there. 130 00:08:38.559 --> 00:08:41.639 And since that time, it's returned or I'm sorry, over 131 00:08:41.639 --> 00:08:45.200 the last six years, it's returned about a billion dollars 132 00:08:45.240 --> 00:08:50.000 worth of returns to the taxpayers of North Dakota. You know, 133 00:08:50.279 --> 00:08:52.240 it's public services for which they did not have to 134 00:08:52.240 --> 00:08:56.360 pay taxes. And of course they have the strongest community 135 00:08:56.360 --> 00:08:58.840 banking industry in the country in terms of state by 136 00:08:58.879 --> 00:09:02.840 state analysis of a number of banks per capita. This 137 00:09:03.000 --> 00:09:06.399 is because the banks have a large partner in their 138 00:09:06.440 --> 00:09:09.080 state who does not want to steal their customers, does 139 00:09:09.120 --> 00:09:10.600 not want to acquire them or put them out of 140 00:09:10.600 --> 00:09:14.399 business like Wall Street banks do. So North Dakota and 141 00:09:14.480 --> 00:09:17.399 the people there have made a commitment to local banking, 142 00:09:17.480 --> 00:09:22.559 publicly owned banking. Despite its very conservative voting base. It's 143 00:09:22.559 --> 00:09:26.679 not a socialist utopia by any means. But they do 144 00:09:26.720 --> 00:09:28.799 have a publicly owned bank, and it helped them whether 145 00:09:28.960 --> 00:09:32.080 the Great Financial Crisis, much better than a lot of 146 00:09:32.080 --> 00:09:35.600 other places. Help their local governments avoid bankruptcies. It allowed 147 00:09:35.639 --> 00:09:39.919 them to maintain disaster funds and benefits for their people 148 00:09:41.320 --> 00:09:45.399 even as other states were seeing county and city bankruptcies 149 00:09:45.399 --> 00:09:50.799 and austerity. It doesn't have to operate, no, Yeah. 150 00:09:50.840 --> 00:09:54.159 The difference would be that a private bank the profits 151 00:09:54.159 --> 00:09:56.919 would go to the shareholders, whereas with a public bank, 152 00:09:56.960 --> 00:09:58.919 the profits that the bank would generate just like the 153 00:09:58.919 --> 00:10:01.919 public the private bank generate, it goes back into the 154 00:10:02.200 --> 00:10:04.039 tax revenues. 155 00:10:07.120 --> 00:10:09.320 Right that can pay dividends to tax payers, or it 156 00:10:09.360 --> 00:10:12.120 can reinvest that money, but all of that investment is 157 00:10:12.159 --> 00:10:15.759 owned by the public and generally, public banks also have 158 00:10:15.799 --> 00:10:20.159 to operate along the social and ethical mandates, which private 159 00:10:20.200 --> 00:10:24.360 banks have no obligation to follow. Just the requirement that 160 00:10:24.399 --> 00:10:28.200 they invest locally is a big difference. Wall Street banks 161 00:10:28.240 --> 00:10:30.200 move money all around the world, and they move it 162 00:10:30.240 --> 00:10:35.000 where it's most productive for their shareholders. This is why 163 00:10:35.679 --> 00:10:39.000 you see investment flooding out of the United States and 164 00:10:39.080 --> 00:10:42.120 out of the US labor markets especially. It's why you 165 00:10:42.200 --> 00:10:47.720 see the sort of transfer of an environmental devastation all 166 00:10:47.759 --> 00:10:49.799 around the world to where it can be most tolerably 167 00:10:49.799 --> 00:10:56.519 invested in. By locking public funds to public benefit through 168 00:10:56.559 --> 00:11:00.600 public banks, you can prevent that capital from creeping around 169 00:11:00.600 --> 00:11:03.600 the world and doing harm and leaving your local economy 170 00:11:03.720 --> 00:11:07.559 just to shrink and them for itself. So that's just 171 00:11:07.799 --> 00:11:10.559 in the locality. Of course. Public banks are usually subjects 172 00:11:10.600 --> 00:11:14.039 to public disclosure laws, so they have much more transparency 173 00:11:14.360 --> 00:11:16.759 than private banks into the decisions they make and the 174 00:11:16.759 --> 00:11:22.600 political influence that they receive and give out. And they 175 00:11:22.879 --> 00:11:25.919 also tend to be safer than private banks in terms 176 00:11:25.960 --> 00:11:30.399 of protecting public funds from bankruptcies or seizure or loss. 177 00:11:31.000 --> 00:11:34.120 The German people have a network of what you would 178 00:11:34.120 --> 00:11:38.320 consider county level banks, which make up the majority even 179 00:11:38.360 --> 00:11:41.360 of their consumer banking industry. Most people their first checking 180 00:11:41.360 --> 00:11:44.480 account is at a public bank. You only put it 181 00:11:44.519 --> 00:11:46.440 into a private your money into a private bank if 182 00:11:46.440 --> 00:11:48.639 you're rich and sophisticated and want to put it into 183 00:11:48.639 --> 00:11:52.360 an investment bank to grow quickly where else around the world, 184 00:11:52.440 --> 00:11:54.840 possibly shrink quickly around the world. 185 00:11:54.840 --> 00:11:56.279 Where else is this concept popular? 186 00:11:59.120 --> 00:12:02.679 Well, Like I mentioned, and Sparkhausen network has existed since 187 00:12:03.120 --> 00:12:07.240 the late nineteenth century and represents a huge portion of 188 00:12:06.440 --> 00:12:11.120 the their banking industry, even those touching consumers, but definitely 189 00:12:11.399 --> 00:12:16.120 touching local governments. That sector in Germany is responsible for 190 00:12:16.360 --> 00:12:19.440 over three quarters of the loans made to projects which 191 00:12:19.480 --> 00:12:22.919 increased the renewable energy supply of that country, which of 192 00:12:22.919 --> 00:12:25.559 course it is leading in Europe and around the world 193 00:12:25.600 --> 00:12:29.720 and the development of renewable energy sources. I also mentioned 194 00:12:29.720 --> 00:12:35.279 North Dakota and it's very successful and basically the invincible 195 00:12:35.399 --> 00:12:39.720 state bank since it is constitutionally guaranteed. There's been since 196 00:12:39.759 --> 00:12:41.720 it is a public banking around the world since the 197 00:12:41.720 --> 00:12:45.399 beginning of economy is ben Benjamin Franklin suggests the public 198 00:12:45.440 --> 00:12:51.720 banking system which was beat out by Hamilton's private monetary 199 00:12:52.120 --> 00:12:57.960 system of debt. Japan has postal banks, Malaysia has a 200 00:12:58.480 --> 00:13:02.519 has a major public bank, which you know as participates 201 00:13:02.559 --> 00:13:08.879 in its investment sector. There are many, many examples. The 202 00:13:08.960 --> 00:13:12.960 United States does not have a lot of public banks, 203 00:13:13.600 --> 00:13:17.240 largely because of how our country is organized in terms 204 00:13:17.279 --> 00:13:23.039 of its its laws around the participation of government in 205 00:13:23.120 --> 00:13:26.679 what it considers economic activity. Right, we have a las 206 00:13:26.919 --> 00:13:33.840 faire economic system and a very conservative policy set who 207 00:13:33.879 --> 00:13:38.000 believes that private individuals can allocate resources for the rest 208 00:13:38.039 --> 00:13:41.440 of us, regardless of how concentrated they get or how 209 00:13:41.480 --> 00:13:46.879 politically you know, conflicted they and the government becomes when 210 00:13:46.879 --> 00:13:51.240 these giant monopolies take place. And even beyond that, the 211 00:13:51.360 --> 00:13:56.000 very monopoly that banks exercise over the monetary instrument should 212 00:13:56.000 --> 00:13:59.960 be abhorrent to any free people. And what I mean 213 00:14:00.159 --> 00:14:03.879 this is we tend to think of currency as being 214 00:14:03.919 --> 00:14:07.679 issued by some kind of mint, a factory that makes 215 00:14:07.720 --> 00:14:11.080 coins or prints dollars. But that's not how money is created. 216 00:14:11.320 --> 00:14:13.799 Money is created through the extension of credit. In the 217 00:14:13.919 --> 00:14:18.720 United States, it's mainly through private lending. Banks lend money 218 00:14:18.799 --> 00:14:21.919 through a mortgage or through a business loan, and they 219 00:14:22.120 --> 00:14:24.759 effectively print that money onto their books and lend it out, 220 00:14:24.919 --> 00:14:27.320 and they're taking the risk that that money will come 221 00:14:27.360 --> 00:14:31.000 back and will come back with interest. If it does not, 222 00:14:31.840 --> 00:14:35.519 they will have a shortfall. Now, in the United States, 223 00:14:35.600 --> 00:14:38.399 they're allowed to carry deposits from consumers, which they have 224 00:14:38.440 --> 00:14:40.639 to pay one hundred percent back, right you have to 225 00:14:40.679 --> 00:14:42.480 give you put your money in a bank account, you've 226 00:14:42.480 --> 00:14:44.840 expected back in more in the same way that they 227 00:14:44.879 --> 00:14:47.879 do from their loans. But they're allowed to lend ten 228 00:14:47.919 --> 00:14:50.080 times the amount of deposits that they have on their books. 229 00:14:51.320 --> 00:14:52.879 There are ten times the amount of equity they have 230 00:14:52.879 --> 00:14:54.360 on their books, and up to one hundred percent of 231 00:14:54.399 --> 00:14:56.440 the deposits that you think you have in your bank, 232 00:14:57.240 --> 00:15:00.480 so when they make too high of a risk, can sail. 233 00:15:01.360 --> 00:15:04.840 This is the same principle that public banking would work under, 234 00:15:04.879 --> 00:15:08.559 but there are some key differences because in a private scenario, 235 00:15:09.240 --> 00:15:12.759 you have an instrument which is backed by the government 236 00:15:13.759 --> 00:15:15.679 because you can use it to pay your taxes, and 237 00:15:15.720 --> 00:15:17.759 the US military is very strong and works very hard 238 00:15:17.799 --> 00:15:21.519 to make it. So the dollars valuable, but it's completely 239 00:15:21.519 --> 00:15:25.279 monopolized in its creation and management in private hands, and 240 00:15:25.320 --> 00:15:27.120 not just any private hands, but the richest people in 241 00:15:27.120 --> 00:15:31.120 the world. A very small number of people control the 242 00:15:31.120 --> 00:15:34.080 greater monetary policy. In the United States, the Federal Reserve 243 00:15:34.200 --> 00:15:37.559 is chosen by Federal Reserve districts, which are owned one 244 00:15:37.679 --> 00:15:42.399 hundred percent by private institutions. So this public asset called 245 00:15:42.399 --> 00:15:48.039 the dollar, this representation of our social fabric and the 246 00:15:48.120 --> 00:15:50.559 means of exchange by which we base all of our 247 00:15:50.639 --> 00:15:56.519 daily activity, is managed four and on behalf of very 248 00:15:57.679 --> 00:16:04.960 concentrated financial interest. This leads to a concentration of power 249 00:16:05.000 --> 00:16:07.480 in the United States, but then within the United States 250 00:16:07.519 --> 00:16:12.440 as well. So when we think about how public and 251 00:16:12.440 --> 00:16:17.240 private banks are different, one key benefit of public banking 252 00:16:17.279 --> 00:16:20.559 is you bring this instrument back into the public sphere 253 00:16:20.919 --> 00:16:24.320 or democracy can have some kind of impact on our 254 00:16:24.360 --> 00:16:27.360 monetary policy and our greater lending economy. 255 00:16:27.919 --> 00:16:29.559 Let me make you a question. Have you and your 256 00:16:29.639 --> 00:16:32.039 organization have you explored how this could be applied to 257 00:16:32.080 --> 00:16:38.919 the merchant bank of the merchant payment processing industry? 258 00:16:39.840 --> 00:16:45.360 Yes, merchant processing is a highly technological process. Now, of course, 259 00:16:45.440 --> 00:16:49.440 we pay for things with our phones, and we rely 260 00:16:49.559 --> 00:16:55.440 on the stores that we that we to have a 261 00:16:55.480 --> 00:16:58.360 way to accept our payments, and those stores have to 262 00:16:58.399 --> 00:17:03.320 pay a pretty significant fee out of every purchase, basically 263 00:17:03.360 --> 00:17:08.079 attacks just for the right to use currency. And this 264 00:17:08.200 --> 00:17:10.880 isn't even cash currency. Of course, you can avoid this 265 00:17:10.880 --> 00:17:14.160 fee if you pay cash, but more and more that's 266 00:17:14.240 --> 00:17:18.079 not even an option. So even beyond the instrument of 267 00:17:18.119 --> 00:17:22.480 the dollar, we're now seeing a further privatization of money 268 00:17:22.799 --> 00:17:26.720 and a capture of payment systems by huge retail and 269 00:17:26.799 --> 00:17:30.839 financial monopolies. Amazon is trying to essentially replace the dollar 270 00:17:31.519 --> 00:17:33.960 with their own system. They have such a huge piece 271 00:17:33.960 --> 00:17:36.880 of the retail market. I highly recommend David Dan's piece 272 00:17:36.920 --> 00:17:41.200 today and in these times about Amazon. He talks about 273 00:17:41.240 --> 00:17:44.640 all the various industries that they've captured the prema of, 274 00:17:45.160 --> 00:17:49.319 and how they're using these pieces together to accumulate more 275 00:17:49.319 --> 00:17:52.039 and more of our economic activity. And then they have 276 00:17:52.119 --> 00:17:54.519 the goal to turn around and pay their employees in 277 00:17:54.640 --> 00:17:59.839 Amazon gift cards, essentially issuing company script to a cut 278 00:18:00.039 --> 00:18:03.440 to a company that could I mean, they could listen 279 00:18:03.480 --> 00:18:05.119 to me right now, I have an Alexa in my home. 280 00:18:06.720 --> 00:18:11.519 So this is a troubling development if you believe in 281 00:18:12.160 --> 00:18:18.000 the sort of durability and freedom provided by decentralized power systems. 282 00:18:19.319 --> 00:18:24.279 When public banks can participate in a merchant game, they 283 00:18:24.279 --> 00:18:26.119 are not going to be able to wish away the 284 00:18:26.279 --> 00:18:31.759 technological costs of deploying digital money. But there are systems 285 00:18:31.799 --> 00:18:37.839 and development which can decentralize those instruments as well. And 286 00:18:38.759 --> 00:18:42.480 wherever there is rent seeking around the pure permission to 287 00:18:42.640 --> 00:18:46.799 take these fees right the licensing of someone like Visa 288 00:18:46.920 --> 00:18:50.839 or Amazon pay, those can be eliminated through public banking. Because, 289 00:18:50.880 --> 00:18:54.680 of course a public bank could could have these licenses 290 00:18:54.680 --> 00:18:59.720 inherent to themselves, and they could remove barriers to that 291 00:18:59.759 --> 00:19:03.359 business by not putting them up themselves and providing a 292 00:19:03.400 --> 00:19:08.000 credible alternatives so that people can access their own wages. Right. 293 00:19:08.319 --> 00:19:15.720 A big element of credit is that time time marches 294 00:19:15.759 --> 00:19:19.279 on right at a steady pace, and you may need 295 00:19:19.359 --> 00:19:22.720 money now, but you will work in the future. And 296 00:19:23.279 --> 00:19:28.920 people take advantage of this by issuing payday loans, title 297 00:19:29.000 --> 00:19:31.640 loans to people who do not have any leverage in 298 00:19:31.640 --> 00:19:35.759 the credit markets. They extract very quigh interestites through credit 299 00:19:35.799 --> 00:19:39.880 cards and through these extracted financial products just so that 300 00:19:40.359 --> 00:19:43.119 just basically so that people can access the gains of 301 00:19:43.160 --> 00:19:46.480 their own labor. And this is because money itself has 302 00:19:46.519 --> 00:19:51.799 been captured. You cannot receive your money unless jack mission 303 00:19:51.799 --> 00:19:54.319 from bivate edition. So it's making that accessible. You know, 304 00:19:54.359 --> 00:19:57.720 when I've talked to my friends in the blockchain industry, 305 00:19:57.880 --> 00:20:01.920 people in bitcoin and other kinds of sort of cryptoanarchic 306 00:20:02.440 --> 00:20:05.920 systems where they would like to see money evaporate entirely. 307 00:20:05.960 --> 00:20:09.680 They don't like my public banks whatsoever. But the idea 308 00:20:09.759 --> 00:20:13.319 that you may need to have between your currency, your 309 00:20:13.319 --> 00:20:17.079 payment system, and local governments requires that you have a 310 00:20:17.119 --> 00:20:21.799 credible partner with which to bank. And if that is partner, 311 00:20:21.880 --> 00:20:27.400 is a private entity, then you caveat m tour. Right. 312 00:20:28.200 --> 00:20:31.319 If you have a public entity that has defined rules 313 00:20:31.319 --> 00:20:34.880 and is found by the Constitution, you can combine that 314 00:20:34.960 --> 00:20:44.160 with technologically disruptive platforms like blockchain and another to replace 315 00:20:46.160 --> 00:20:48.839 those merchant services that are taking basically four percent of 316 00:20:48.839 --> 00:20:50.559 our economy every time we swipe our card. 317 00:20:50.640 --> 00:20:53.559 Well, not only Actypothia, they're privately run that they're probably owned. 318 00:20:54.000 --> 00:20:57.319 So PayPal or even merchant payment services can just deny you, 319 00:20:57.599 --> 00:21:00.279 just cancel your account at anytime they want, you know, 320 00:21:00.359 --> 00:21:02.880 just we choose not to do business with you. And 321 00:21:02.920 --> 00:21:06.200 you're at a business now, if you're unpopular, if you're 322 00:21:06.200 --> 00:21:09.319 broadcasting a radio show, it's unpopular tod our business, they 323 00:21:09.319 --> 00:21:11.559 can come right in and shut you down. Well, let me, 324 00:21:11.920 --> 00:21:13.759 let's ask you a question because you mentioned that the 325 00:21:13.799 --> 00:21:16.240 only public bank we have right now in the United 326 00:21:16.279 --> 00:21:19.799 States is North Dakota, and then you said that they 327 00:21:19.799 --> 00:21:23.160 don't have any kind of commercial storefronts with tellers, and 328 00:21:23.200 --> 00:21:25.559 that why don't they have that, Why don't they offer 329 00:21:25.599 --> 00:21:26.039 that as well? 330 00:21:31.720 --> 00:21:33.960 Bill? Because the Bank of North Dakota is set up 331 00:21:34.000 --> 00:21:36.720 specifically to not compete with their community bank and to 332 00:21:36.799 --> 00:21:41.799 take retail customers. You know, they have a deal basically 333 00:21:41.839 --> 00:21:45.759 with with with their local community banks, which in their 334 00:21:45.839 --> 00:21:49.960 law that that that they will partner with those banks 335 00:21:50.039 --> 00:21:53.119 rather than compete for those same customers. Okay, uh, and 336 00:21:53.359 --> 00:21:56.920 Art here in California that we're working on makes a 337 00:21:57.039 --> 00:22:05.240 similar concession because governments generally do not have the capacity 338 00:22:05.279 --> 00:22:12.599 to very quickly set up into high touch services without 339 00:22:12.960 --> 00:22:16.480 you know, experience and time. You know, you wouldn't want 340 00:22:16.480 --> 00:22:22.000 to overnight make banking illegal and take that stuff over 341 00:22:22.640 --> 00:22:26.440 unless you wanted to have a very disruptive moment in 342 00:22:26.480 --> 00:22:29.880 people's lives. Right, People get very afraid when their money 343 00:22:29.960 --> 00:22:32.559 is at risk in the bank, and it can lead 344 00:22:32.599 --> 00:22:37.200 to unnecessary problems if they are worried about that. So 345 00:22:37.319 --> 00:22:39.839 you don't want to make radical changes to how people 346 00:22:39.880 --> 00:22:44.920 access their goods unless you you know, you really want 347 00:22:44.920 --> 00:22:49.319 people out in the streets. But you you also need 348 00:22:49.359 --> 00:22:53.119 to keep those folks in check that are getting that 349 00:22:53.200 --> 00:22:57.759 kind of protection from a public bank. For example, if 350 00:22:57.799 --> 00:23:00.359 you have a community bank that is owned locally, nothing 351 00:23:00.759 --> 00:23:04.039 necessarily ethical about it, right, There's nothing that makes it 352 00:23:04.119 --> 00:23:07.319 better than something than a Wall Street bank, except that 353 00:23:07.680 --> 00:23:11.279 they're closer and they're subject to local laws to one 354 00:23:11.319 --> 00:23:13.920 element of creating an alternative to wall streets. You can 355 00:23:13.960 --> 00:23:17.440 localize influence over these financial institutions and make sure that 356 00:23:17.440 --> 00:23:21.640 they're doing things for the benefit of their community. Localism 357 00:23:22.000 --> 00:23:28.359 is accountability because when you're nearby, you have to live 358 00:23:28.400 --> 00:23:32.680 among the people whose policies and business you know you're impacting. 359 00:23:34.240 --> 00:23:38.599 But you know, the governments have trouble sometimes with providing 360 00:23:38.640 --> 00:23:41.680 front end services. You know, in an era where things 361 00:23:41.680 --> 00:23:45.559 are changing very quickly around financial technology, you want to 362 00:23:45.599 --> 00:23:49.319 find the right balance between public ownership, which should be 363 00:23:49.319 --> 00:23:52.000 one hundred percent of the sort of end games, and 364 00:23:52.119 --> 00:23:58.279 private implementation which can allow for flexibility and you know, 365 00:23:58.319 --> 00:24:01.720 and basically the career of jobs in the private sector 366 00:24:01.799 --> 00:24:06.039 around accomplishing these goals but capturing the upside, especially the 367 00:24:06.119 --> 00:24:10.480 long term upside for the people. Unfortunately, that tends to 368 00:24:10.480 --> 00:24:13.079 be the opposite of how government runs right, and in 369 00:24:13.119 --> 00:24:15.920 most cases, government fronts the up broad costs, takes all 370 00:24:15.920 --> 00:24:18.359 the risk and the long term gainser for the private sector. 371 00:24:18.640 --> 00:24:20.680 And that's, you know, is one thing that you need 372 00:24:21.160 --> 00:24:26.880 when we're working with legislators and business advocates and all 373 00:24:26.920 --> 00:24:29.079 these loans is we need to be a watchdog to 374 00:24:29.079 --> 00:24:31.920 make sure that this doesn't turn into a system of 375 00:24:31.960 --> 00:24:35.519 further extraction and the socialization of risk, and we actually 376 00:24:35.519 --> 00:24:39.839 have to make sure that the reward is brought back 377 00:24:39.880 --> 00:24:41.079 to the tax payers. 378 00:24:42.039 --> 00:24:43.720 This would be a good time to take commercial break. 379 00:24:43.960 --> 00:24:47.000 We're here with the David Jetty. He's with the California 380 00:24:47.000 --> 00:24:50.200 Public Banking Alliance and the Public Banking LA is what's 381 00:24:50.200 --> 00:24:55.039 that quote in Public Bank LA. That's right, Okay, So 382 00:24:55.079 --> 00:24:57.039 we'll be right back with more of David Jetty talking 383 00:24:57.039 --> 00:25:01.359 about the public banks versus private banks right after these messages. 384 00:25:11.319 --> 00:25:16.240 And now a word from our sponsors, almightygold dot com. 385 00:25:16.920 --> 00:25:20.319 Get your gold and affordable quantities one gram, two and 386 00:25:20.319 --> 00:25:24.160 a half grams, five grams, no minimum purchase required. Why 387 00:25:24.200 --> 00:25:27.240 saving paper when you can save in gold. Almightygold dot 388 00:25:27.279 --> 00:25:30.400 com understands it's difficult to afford gold and large quantities. 389 00:25:30.599 --> 00:25:32.599 No one can afford an ounce of gold. 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