53 - Phase 3 - Creating Corporation/Foundation Partnerships

Nov 2011

A Four-Phase Approach to

Creating a Public-Service Banking System

Phase Two-A

Split the Banking System

into Two Parts

Big-Business to Big-Business Loans: The part of the banking industry that handles multi-million dollar loans for major business ventures remains similar to the way it is except that it gets no government bailouts for bad management.

Public Service Loans: The part the banking industry that handles public service loans, such as homeowner loans, credit card loans, auto loans, student loans, small business loans, etc., is separated from the existing banking system. (See the next section below.)

Foundation Network Foundation Network

Phase Two-B

Create a Network of

Foundation/Corporation

Partnerships

The New Business Structure: Set up a mutually-interactive network of independent, non profit foundation/corporate partnerships with at least one corporate/foundation partnership in every county in the entire country. This business structure is described in great detail on the TLC-Life-Center website, http://www.New-Corporate-World.info#39

What the FCPartnerships Do: These newly-created foundation/corporation partnerships provide financial loans for individuals and families, loans such as home loans, auto loans, student loans, credit card loans, small business loans, etc.

Startup funding: Initial funding for the FCPartnerships comes directly from the U.S. Treasury at zero percent interest rate. This intentionally bypasses the Federal Reserve. ^**fb2 The U.S. Treasury gets the money form the same source that the Federal Reserve gets the money that it loans. It simply creates it out of nothing.

There are two significant differences. First, it's the people, not a private group of super-wealthy bankers who are lending the money. The people by way of the federal government, are lending money to themselves. Second, the Federal Reserve is a private for-profit business. Borrowers pay interest and fees. The owners of the Federal Reserve keep all the profits for themselves. With the money from the U.S. Treasury there is no interest charged, there are no fees charged and nobody takes money out of the system for their own private use.

The Use of Profits: Future profits are used in two ways. Ninety percent goes to fund social services or to create facilities used for providing the social services in the county in which the foundation/corporation partnership is located.

Ten percent goes into the FCPartnership's investment fund. The investment fund money is never spent or encumbered in any way. Profits from the investment fund are used for whatever purpose the FCPartnership chooses providing that use falls within the category of "The greater good for all concerned in the long run." When the network of FCPartnerships work as a team, they would soon have a very powerful investment fund.

Whose in Control? Each corporate/foundation partnership MUST BE INDEPENDENT and under the direct control of the people of the county in which it is located. It cannot under any circumstances whatsoever be in any way subservient to any existing government agencies.

Why avoid the existing government? Because elected, government bureaucrats are under the control of the super-wealthy who behind the scenes, control the corporations that spend the money to elect the politicians who write the laws that control anything of any significance in the United States, England, and Europe. Because the present political system has a hundred year track record of screwing the people and supporting the wealthy.

Time Required: Residential home foreclosures could be stopped immediately. Completing the transition would take a few months.

Reference 1: How to End the Home Foreclosure Crisis

http://www.EconomicSanity101.com/bo-3-how-to-end-home-forelcosure-crisis.html#83

More about Foundation/Corporation Partnerships

The following notes include suggestions on how to set up and manage the foundations so that, first and foremost, they serve the public interest.

Each foundation is the property of the people of the state in which it is located. Each foundations belong to the people of the state and NOT to the state government. The foundations are intentionally built outside of the existing political structures to avoid the political infighting and to avoid the big-money special interests that dominate so much of present-day politics. Each Foundations is to be managed by an independent board elected directly by the residents of the state.

Directors are elected for a six year term. One third of the board members are elected every two years.   Existing board members must pass an approval test by the voters every two years:
Choice 1)    Keep (___ ) on the board for another two years.
Choice 2)    Remove (___ ) from the board.
Prior board member can again ask the voters to elect them to the board after being off the board for one election cycle -- a cycle in which they do not attempt to influence other board members or participate in any way in board business.

The Board of directors offers a list of suggestions about how and where the money should be spent. Prior to spending the money, each spending project must be approved by a popular vote of the state residents.

Two examples: 1) The board suggest spending twenty million dollars on a metro rail system between city "G" and City "H." 2) the board suggest spending 398 million dollars to build "The Bridge to Nowhere."

The voters get to choose between these four options; Spend 100% Spend 66% Spend 33% Spend o% on this project. Which ever percentage wins is the percentage of the suggested money the project gets.

When critics claim this to be a cumbersome system, ask, "What special interests are paying you to express this objection?" Do you have any conflicts of interest that are influencing your objection? If so, what are they. Then suggest comparing the new system with the existing state funding-allocation system. We suggest using the 2008-2009 budget war in California as an example.

If people want to promote or advertise for or against funding a project, they are free to do so as long as they pay the same amount to the side opposite there's so that both sides get an equal amount of public exposure.

This is the end of -- Banking System Redesign.