As Federal Reserve Chairman Ben Bernanke discusses preventing inflation, report calls for restructure of Fed, bank localization, and more.
Washington DC – As Federal Reserve chairman Ben Bernanke promises to leverage the reserve to boost the economy, a report being released next week proposes innovative solutions to unemployment and the economic crisis. The report, “How to Liberate America from Wall Street Rule,” by the New Economy Working Group, proposes a revolutionary six-part agenda for ending Wall Street’s disastrous hold on the economy and creating a community-based, publicly accountable money and banking system responsive to the needs and opportunities of the United States in the 21st century.
The report calls for the Federal Reserve to be restructured to limit its capacity and subject it to federal oversight and public accountability. It supports an emphasis on state-level and local banks. It proposes the creation of a new federal bank for the finance of environmentally sustainable infrastructure projects in the United States, which would receive funds from the Federal Reserve’s money supply expansion activities. It makes a case for trade law that promotes domestic ownership and production. And it calls for regulatory controls that would promote investments in production and the real economy rather than the speculative market.
Dr. David C. Korten is co-chair of the New Economy Working Group, co-founder and board chair of YES! Magazine, founder and president of the Living Economies Forum, and a founding board member of the Business Alliance for Local Living Economies (BALLE). His books include Agenda for a New Economy: From Phantom Wealth to Real Wealth, The Great Turning: From Empire to Earth Community, and the international best seller When Corporations Rule the World. He has MBA and Ph.D. degrees from the Stanford Business School. In his earlier career he served as a captain in the U.S. Air Force, a Harvard Business School professor, a Ford Foundation project specialist, and Asia regional adviser on development management to the U.S. Agency for International Development. He is a regular guest on talk radio and television and a popular speaker at conferences around the world.
EMBARGOED COPIES OF THE REPORT ARE AVAILABLE. Please contact Lacy MacAuley, Institute for Policy Studies, (202) 445-4692, lacy@ips-dc.org. The report is under embargo until 12:01 AM on Tuesday, July 19th, 2011.
Interviewees:
Dr. David C. Korten, lead author, “How to Liberate America from Wall Street Rule”
John Cavanagh, Director, Institute for Policy Studies
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The New Economy Working Group (NEWGroup) is an informal alliance of the Institute for Policy Studies (IPS), YES! Magazine, the Business Alliance for Local Living Economies (BALLE), and the Living Economies Forum, plus individual members Gar Alperovitz, Stacy Mitchell, and Gus Speth. For further development of the NEWGroup framework presented here see neweconomyworkinggroup.org, livingeconomiesforum.org, and David Korten, Agenda for a New Economy: From Phantom Wealth to Real Wealth, 2nd edition.