Public banks can fully fund infrastructure with ‘self-paying’ negative interest loans


Imagine this: because banks legally create credit out of nothing rather than “lend money,” a public bank on one computer could fully fund local schools by creating a “loan” to fund their entire school-year expenses with an interest rate of -100%, with the loan due within ten seconds of the district superintendent signing the document.

What happens?

If you don’t know, better read the first link above.

What happens: a 100% negative interest rate means the so-called “loan” is self-paying. In this example, after ten seconds the loan is extinguished, and the public bank is again fully capable of extending more credit.

And yeah, it’s legal for banks to set whatever interest rate they choose.

The point is this: creating credit and money is a public benefit that can and should create no long-term debt, full-employment, the best infrastructure we can imagine, and because infrastructure contributes more to economic output than cost of inputs, we also have falling prices. The difference between credit and money (only lawful to create at the federal level of government) is just a negative sign and positive sign on a computer, and both can work as money. The amount of what we use for money should be managed transparently so the value is as we wish.

In contrast, we have debt-based “money” created by private corporations to maximize their own profit while creating increasing and unpayable debt. It’s massive criminal fraud of our 1% in government, money, and media that our current system is “good” for us, compared with public banking benefits.


Public Banking Institute’s 2013 conference explains, documents, and proves that economic solutions for deficits, debt, and full-employment are structurally:

  • easy to understand and self-evident upon inspection
  • easy to implement
  • would improve our economy amazingly quickly and thoroughly



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About the author

I'm a National Board Certified Teacher in Government, Economics, and History. From 1979 to 1997, I helped grow the citizens' lobby RESULTS for US domestic and foreign policy to end poverty. After two UN Summits and both political parties' "leadership" reneging on all promises (public and private), I shifted my "hobby" to research and follow the money. This has led to my current work to research, write, and lobby for economic and government reforms. And yes, these reforms begin with arrests of 1% leaders for "emperor has no clothes" obvious crimes centering in war, money, and corporate media lies.