ENGINEERING ECONOMIC VITALITY FOR ALL
HOW BANKING 2.0 WORKS
We Need Banks That Better Serve Our Needs
Under Banking 2.0, a customer's deposit would no longer be held by the bank itself, it would be held by the Fed, eliminating all risk for the customer.
Thus, banks would serve as intermediaries to the Federal Reserve.
As intermediaries, banks would still originate and service loans, but the Fed would be their source of capital.
How Mortgages Would Work Under Banking 2.0
Because the Fed would create the money needed for mortgages, there would no longer be a cost of funds. Thus, mortgages could be interest-free.
How much would an interest-free mortgage save you?
Banks could finance a wider range of projects without risking their customers' funds.
Banks could even finance start ups, which would supercharge the economy.
The returns that our banks could make overseas would provide profits to our nation that could be passed on to citizens in the form of Fed dividends.
Banking 2.0 opens the door for our banks to provide finance on a new global level, strengthening our influence so we can better compete with China.
Banking 2.0 Would Give Us a Global Edge
The Fed can generate the reserves to finance any project, enabling our banks to become the pre-eminent global financiers.