National Bank

National Bank

The united States pays 227 billion dollars in interest annually. If 90% of this cost was alleviated, due to the National Banking system being a non-profit low interest system designed to benefit all parties involved, roughly 204 billion dollars could be saved annually.

The United State's already guarantees and backs most banks in the United States, agreeing to provide them with monetary funds to pay back investors should many of them withdraw at any point in time. Due to the fact that the U.S. backs the bankers, the U.S. is in theory a bank to the bankers.

If a non-profit low interest rate system was developed (only enough interest to run the program, and pay employees etc.) and funded by the United States, theoretically an enormous amount of debt relief and interest problems could be removed from the American people. A 30 year loan on a house at a 3.5% interest rate (standard market interest rate) would equate to roughly 105% extra money being paid on a house, doubling the cost for housing. If 100% of this was eliminated, housing prices could literally be cut in half; in other words if a low interest, or a 30 year interest rate was reduced to merely 5% at the culmination of 30 years, the small portion necessary for storing, loaning money, and various processing fees being ignored, housing prices could literally be cut in half.

Not only would this help the United States but also reduce the price of housing, car loans, and most other costs drastically.

Most major banks receive the majority of their income from corporations and other businesses, as well as individuals well over the 1% in annual income rates, allowing major interest and debt relief for roughly 98% of the population to occur without affecting the Banks primary income rates. Not only could this benefit the American people and the United State's budget, but also allow for a more seamless transaction between banks and the U.S. reserve's.

If the U.S. created a banking system, they already pay for and protect most banks in the U.S., installing and creating security systems and providing police supports for robberies. As a result, the cost of switching over to a U.S. created system wouldn't put more stress on the government to in essence, build a banking infrastructure, as they already do pay for the majority of it, while banks produce little. Because banks do not lose money in banking transactions, as no physical commodity is produced, banks will not lose profit on already built capital (such as failing to sell 1 million automobiles for next year, as banks make profit purely off of more people being available). Therefore, cutting down business will not make them lose already spent money, suggesting that profit gains and losses will be directly proportional. Banks will not be obscenely hurt, and the workers in these banks could be easily switched over to officially work for the government, getting rid of the middle men and saving billions.