Thursday, January 23, 2014

Mish Takes on Money Printing Advocate Ellen Brown (Again)

Mish writes:
Ellen Brown Revisited

Ellen Brown has made a career promoting the idea North Dakota is doing well because it is the only state with a state run bank. 

Here's reality: A number of states are in good shape because of sound fiscal policies.

If you are looking for academic silliness, do a search for Ellen Brown North Dakota Sate Bank

Better yet, play this downright scary video 

If I only Had a Ban






The idea that North Dakota, a small loosely-populated farm state is in good shape only because it has a state bank is preposterous.

Worse yet, Brown takes that absurd position to the extreme, with a proposal to end the Fed and put California politicians (state politicians in general) in charge of printing money to support union causes.

Ellen Brown understands various problems with the Fed, but proposes a solution that is even worse, putting state politicians in charge of printing presses.

Read more at http://globaleconomicanalysis.blogspot.com/2014/01/state-bank-nonsense-from-ellen-brown.html#W0cEB6meMKH3mR8S.99

RW Note: North Dakota is booming not because it has a state bank, but because it has the type of oil properties that are now technologically and economically feasible to develop.

From Wikipedia:

The North Dakota oil boom is an ongoing period of rapidly expanding oil extraction from the Bakken formation in the state of North Dakota that followed the discovery of Parshall Oil Field in 2006, and is continuing as of 2013.[1][2] Despite the 2008–2012 global financial crisis, the oil boom has resulted in enough jobs to give North Dakota the lowest unemployment rate in the United States.[3][4][5] The boom has given the state of North Dakota, a state with a 2013 population of about 700,000, a billion-dollar budget surplus. North Dakota, which ranked 38th in per capita gross domestic product(GDP) in 2001, rose steadily with the Bakken boom, and now has per capita GDP 29% above the national average.[6][...]
By 2012, income from oil royalties was reportedly paying many local mineral owners $50,000 to $60,000 per month, and some more than $100,000 per month. An economist estimated that the boom was creating 2,000 millionaires per year in North Dakota. The average income in Mountrail County has more than doubled since the boom started, to $52,027 in 2010, putting it into the top 100 richest counties in the United States.[8]
The oil boom reduced unemployment in North Dakota to 3.5 percent in December 2011, the lowest of any state in the US.[9][10]
The number of actively-drilling rigs in North Dakota peaked at 217 rigs in Spring 2012, with the rig count averaging 180-190 throughout 2013.[11] Each of the rigs is estimated to create roughly 125 new full-time jobs. This means a total growth of around 25,000 jobs, including an extra 10,000 jobs for workers who lay pipes to producing wells and produce processing plants.[10] Some estimates predict that North Dakota could have as many as 48,000 new wells, with drilling taking place over the next two to three decades.
The Bakken boom has propelled North Dakota into the top ranks of oil-producing states. As recently as 2007, North Dakota ranked 8th among the states in oil production. In 2008 the state overtook Wyoming and New Mexico; in 2009 it outproduced Louisiana and Oklahoma. North Dakota surpassed California in oil production in December 2011, then in March 2012 overtook Alaska, to become the number two oil-producing state in the country, exceeded only by Texas.[12]
Government revenue 
The North Dakota state government receives through severance taxes 11.5 percent of the gross value of all oil produced.[13] The boom has given the state of North Dakota a billion-dollar budget surplus.[9][10]



3 comments:

  1. Gary North has famously taken apart both the historic as well as monetary inaccuracies (an understatement) of Ms. Brown.

    http://www.garynorth.com/public/department141.cfm

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  2. Her solution is state sponsored theft and is nothing close to original thinking. What is ironic is that one of the primary drivers for the US to claim its independence from the crown was because of the constant debasement of the crowns money. Even more ironic is that the expression "as worthless as a Continental" basically sums up the end game of her proposed solution. We've tried this and it failed.

    ReplyDelete
  3. The masses don't think for themselves

    ReplyDelete