82. For Local Banks


For Local Banks
Bob Komives
::

...

Local banks tend to issue money
as stock in local knowledge.
Thousands of local banks
(together and at odds)
foster diverse and robust investment.
Forsake local banks for
    fewer,
    larger,
    national
    and international banks
and you foster
    monotony,
    vulnerability,
    foot in the mud,
    butt in a rut,
    a people and nation
    of downward mobility
.
|| 
Banks expand money supply when they lend out most of the money they are “holding” for depositors. Thus, local banks generate a somewhat local currency.  Given the lack of public minting powers at the local level, private local banks have an important role to play. They have built-in incentives to invest in local economic development that will return local deposits. The money that the bank introduces locally to the national economy responds to —even rewards— success of local investors. Given a centralized, national monetary system, decentralized, local, private banking is a complementary aid to local economic development.


:: Bob Komives, Fort Collins © 2006 :: Plum Local IV :: 82.  For Local Banks  ::
With attribution these words may be freely shared, but permission
is required if quoted in an item for sale or rent

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