Yes ,many of us are asking why Keating sold off the CBA and the State Govts did likewise with their banks.The logic behind Kevin's brainstorm is to create his own credit,however under the present banking rules and bank must have real deposits before the fractional reserve system allows them to create $9.00 for every $1.00 in deposits.

It will take decades for such a bank to eventuate and will it survive?First of all,such a bank should be completely independant of Govt and owned by the people.No Govt should be allowed to create it's own credit.It should be totally corporatised with no public servant unions involved with no one having job security.Then it will have half a chance.

The Credit Unions are getting a bit nervous since they see Kevin invading their territory.

I have a suggestion for Kevin.Why not let the Credit Unions create money in their computers like the banks do? They would not have to then borrow from the banks and Kevin could then borrow from the people's Credit Union Banks.The big four banks would then have some serious competition.

Swan has again knocked the idea in the head. There will be no government bank. Just as well, seeing what Rudd has done to the Australian economy, with his stupid Keynesian attitudes.

*I have a suggestion for Kevin.Why not let the Credit Unions create money in their computers like the banks do? *

They already can Arjay, for it is the same money going around and
around, which I don't think you understand. Banks simply come
under more scrutiny then credit unions and have to have fixed reserves, as specified by the reserve bank. So to lend you
100$, the bank has to find 110$, if their reserves are specified
at 10% for instance.

keating didnt want to sell the common wealth..[he got told he had to]

there was a need for govt to borrow arround 12 billion...no worries saif the commonwealth..[peoples bank]...we will lend it at 3.3/4 percent

no said the world bank...you will lend it from us..at 13. 3/4 %..and by the way..you will privatise the peoples common-wealth bank...so he did

its funny i suggested the concept of a peoples bank to krudd...so im sort of taking the liberal rejection of the concept personal...seeing as turnbull into votes ..being a banker with that leighman/sax fraudsters...and costello going off to join his world bank cronies

all we need now is the traitor..[turncoat-[bull,into votes..to rollover on the new leighman/sax cabon trading scam...set up by obama/gore.. pre him becoming president...let the revolution begin...this is yet more tax without representation...

but worse..because its designed to give the tax ..direct to big business..[who have massivly colluded treasons even greater that stealing the fed and the peoples bank...may they rot in hell

Yabby seems to be glossing over the reality."They already can,it is from the same money going around and around." I cannot find anything on the web that says the Credit Unions can create credit from a loan to deposit ratio of 9:1.The banks can certainly do this which gives them a huge advantage over the Credit Unions.

Perhaps Yabby can give a reference that indicates that the Credit Unions are actually allowed to practise fractional reserve banking.The money going around and around does not create a level playing field and the real advantage is at the point of it's creation Yabby,so don't try to fudge the stats.

Arjay, banks by law have to keep a % of their total loan book as
liquid reserves, like cash, deposits with the Reserve bank whatever,
so if customers want their money back, they can pay it. If their
reserves were required to be 100%, they could loan no money out, only
their own money. Fractional reserve banking means that they only
have to hold a fraction of that 100% as liquid, so the same money
circulates around. You make a deposit, somebody else borrows that
money, etc. Every time that money becomes another loan, the money
supply is increased.

Take a look at an annual concise financial report of one of the big banks.
I have one here in front of me, from 2003. They received
9.9 billion $ in interest payments and paid out 5.7 billion $
in interest payments.

It seems to me that you think that banks can pay interest on 1$
of deposits and charge interest on 9$ worth of loans. Not so.