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A sustainable financial infrastructure

NOTE: Two politician's from the Swedish Environmental Party - Miljpartiet has put forth the following motion to the Swedish Parliament and Government. They want to establish a new green investment bank. This motion is huge, even though they are not addressing the corporate root cause of the business banks and their ties to large corporations owned by approximate 147 - 1318 companies who owns 60 percent of the revenue stream (A team of Swiss scientists have proven this) , the politicians are discussing the problems related to the private banks controlling the flow of credit instead of the National Treasuries though, which is HUGE! Oliver Troll Motion date 04/10/2013 "The Parliament announces the Government as their sense of what is cited in the motion to allow investigation of how a green investment bank would be established in Sweden. In Sweden there are many comparable countries with a variety of credit institutions. There is every reason that even in our country include more types of banks and more to satisfy the many needs and promote a green transition. Not least the deep financial crisis of 2008 has demonstrated that the globalised financial system which allowed to grow unchecked, characterized by a strong concentration of power and almost non-existent democratic governance, is not sustainable. Sweden is dominated by four large banks credit market, all of which takes the form of public limited companies. In stark contrast to this financial monoculture found in many parts of the world a significant cooperative banking sector, and a variety of locally owned banks and credit institutions. Local credit institutions In the United States, credit unions, cooperative banks, more than 90 million members, which make up 40 percent of the country's adult population. These banks typically have a distinctly local anchoring and is referred to as community banks, to which several smaller private banks tend to be counted. Most of these banks have weathered the financial crisis much better than the big banks on Wall Street. In economically deprived areas, with the weak presence of conventional banks, both in the United States and the United Kingdom established a form of credit institution called the CDFI (Community Development Financial Institution). These are especially focused on lending and financial advice to individuals and small businesses struggling to get loans from conventional banks. The U.S. Treasury has set up a special fund that provides capital to the CDFI-over 1000 CDFIs located throughout the United States, and the private operators who invest in these special credit institutions receive tax breaks. In the United Kingdom, it is largely CDFIs that provides credit to Community Interest Companies, a new type of local businesses

Translation by: Oliver Troll - 29/10/2013

whose surplus is essentially reinvested in operations and that cannot be bought by conventional public limited companies. The sixty independent savings banks which still exists in Sweden can be said to constitute a sort of local public institutions, where the City Council will appoint half of the so called principals. The local and regional economy are investment focus for these banks and the surplus is primarily used to strengthen the Bank's liquidity, while a smaller part goes back to the countryside in the form of support for the voluntary sector, etc. The Government should let investigate how savings banks condition can be strengthened, and whether a CDFI-platform would be needed also in Sweden. This Parliament should give the Government announced that its meaning.

State banks United Kingdom established 2012 a State green investment bank: Green Investment Bank. The State has provided the Bank with a nominal capital of 3.8 billion and it is hoped that these public funds should generate a leverage effect and attract private capital for investment in renewable energy, energy efficiency, waste management and other green infrastructure. Investments in immature green technologies, such as tidal power, are often difficult to attract private capital. It ultimately provides significant socio-economic benefits in the short term can be financially risky, but if public funds invested initially so often venture private equity follow suit. A well capitalized green investment bank would be needed even in Sweden, to boost innovation and entrepreneurship in green industries. The Government should let investigate how a green investment bank would be established in Sweden. This Parliament should give the Government announced that its meaning. In France launched in 2012 a State investment bank: Banque Publique d ' Investissement (BPI). The governance of the Bank, endowed with a nominal capital of EUR 21 billion, is significantly decentralized to the regions. Innovation support for small and medium-sized enterprises belong to the Bank's mission, as well as to stimulate the growth of green jobs. In Germany was established in 1948, the Kreditanstalt fr Wiederaufbau (KfW), with funding from the Marshall aid, in order to contribute to the reconstruction of the country after World War II. The German State currently owns 80 per cent of the Bank and the States the rest. Over 90 per cent of the Bank's lending is lent on the mainstream capital markets, but this mainly occurs through the issuance of bonds guaranteed by the State to benefit from KfW good loan terms. This, in combination with the Bank need not make distributions to private shareholders, and is exempt from corporation tax, allows it to provide loans at lower interest rates than private banks. It may not, however, compete with these but have a complementary function in situations where private capital is unable to mobilize sufficient. Forty percent of the Bank's investments in 2012 went to climate and environmental investments. Lending to local energy companies that want to invest in energy efficiency and expansion of renewable energy a priority of KfW.

Translation by: Oliver Troll - 29/10/2013

In the United States, the Bank of North Dakota (BND), which is owned by the State of North Dakota, garnered growing attention. This bank was founded in 1919 as a result of the State's farmers found it difficult to get loans from large established banks. BND is working closely with North Dakota local banks and credit provide them with lowinterest loans, relative to population, the State of most community banks throughout the United States, which contributed to a vital local economy and an unemployment rate well below the national average. For larger infrastructure projects lends land of their own bank, BND, and interest expenses go way back to the Treasury, which drastically lowers the total cost of the massive project, which is considered to have contributed to North Dakota's strong public finances. BND is focused on the real economy and does not proceed derivatives trading and the like, and have therefore been relatively unscathed by the financial crisis Yes, with the exception of two years, the Bank has been using surplus each year during its century-long history now soon; a portion of the surplus paid to the State Treasury and the rest strengthens bank liquidity. North Dakota is the only u.s. State that abides by its own, publicly owned, bank. Now after the financial crisis is growing interest among both Democrats and Republicans for this type of banks, and in 14 other u.s. States are ongoing initiatives to establish a delstatsgd bank. The Riksbank During the first decades of the 19th century gave private banks issued notes in a number of countries, which created a growing turmoil in the money market. At the century Center in country after country introduced legislation that gave the central bank a monopoly on printing banknotes. Today, the still-The Swedish Treasury (Riksbanken), and the corresponding institutions in other countries and currency areas, a monopoly on the issuance of coins and notes, but these only include a few percent of the total money supply in a modern economy, so has, in practice, private banks and credit institutes regained power over the money issue when they grant their customers loans as "created" in practice, new money, which figures significantly as electronic money in the form of numbers in Bank computers. He who has power over credit flows in a society largely determines which ideas to fruition and the types of business that gets a chance to grow, and has thus a decisive influence over the development of society. Is it reasonable or consistent with the fundamental principles of a democracy that this enormous power placed in the hands of a small number of players in the financial sector? From a democratic point of view , it is urgent that the Riksbank's power over the money issue-and therefore credit flows is strengthened. There is a growing international debate surrounding the sharp rise in capital requirements for private banks. The two economists Jaromir Benes and Michael Kumhof, tied to the research unit at the International Monetary Fund (IMF), in a report put forward thoughts on 100 per cent capital adequacy (full reserve banking). Whether this is the right way to go or if the Riksbank's position can be strengthened in other, less draconian, with an open mind should be investigated. This Parliament should give the Government announced that its meaning.

Translation by: Oliver Troll - 29/10/2013

A stronger democratic influence over currency issuance and credit flows requires a re-democratic National Bank. It is unreasonable that functions as decisively shaping the society moved out of democracy and placed to a supposedly independent National Bank, which only weakly and indirectly controlled by the Riksdag. The worldleading u.s. economist and Nobel laureate Joseph Stiglitz argues that the time is now ripe to critically evaluate Reagan's and Thatcher's project to make the central bank independent. He points out that India, Brazil and others countries not have done their central banks independent in fact weathered the recent financial crisis better than most Western countries. Stiglitz also poses the question what actually ref erred to by "independent" and points out that those sitting in the pipes for the western central banks, of course, is not in any ideological vacuum and he finds it problematic that they so often comes from the financial sector, that is, the sphere that gave rise to the current crisis. An investigation should be mandated to develop a roadmap for the Riksbank's to take bake the democratic power and how its mission can be extended to matters of social justice and in systems ecology at. This Parliament should give the Government announcement that this is its standing. The Chicago Plan Revisited, Benes & Kumhof IMF Working Paper 12/202 The Price of Inequality, Joseph Stiglitz (Allen Lane, 2012) Stockholm the 4 of October 2013

Valter Mutt (MP)

Annika Lillemets MP)"


Translation by: Oliver Troll - 29/10/2013