Tuesday, November 22, 2011

What if? A charitable bank

What if? there were a charitable bank?

What if? we could get loans without interest?

On a mortgage loan at 8.5% (and there are many people in this country with an interest rate like that) the person pays back about $1.77 on top of every $1.00 owed. For example, a $200,000 loan requires $554,000 to pay back. And the person gets nothing for the extra $354,000 they paid. In fact, they were taxed on the money they earned to pay it back. So interest is a deduction? It is a deduction we can't afford. We need lower costs.

Compare: $200,000 at 8.5% costs overall $554,000 to pay back, with monthly payments of $1540.
$200,000 at 0% costs overall $200,000 to pay back, with monthly payments of $555 per month.

You decide which one is more manageable.

But where would the bank get money to loan?

The US government already makes 0% loans to all its member banks. So our bank would have the ability to get money from the same source.

But, does it takes a lot of money to get it started?

I calculated it would take about $100 Million dollars to start a bank.

What if? there were a million people who each wanted to pay $10 per month to belong to the bank, we would have $120 million needed to get started. We don't need the cash per se, we need the commitment.

Can I find a million people? I have already begun. If you would be interested, please post to this blog or send me an e-mail at Unlimited-future@mail.com

Do I think that $10 a month is too much? No, not if I knew that I would be getting no-interest loans for as long as I belonged. And that included free checking account, free ATM, free identity protection.

What if? there were no credit reports? It has been reported that 60% of credit reports have faulty information. But the credit reporting agencies don't care. They don't care because they are earning Billions of dollars on reporting what they want, errors and all.

What if? we could write a questionnaire and use it to qualify loan applicants?

What if? there was something much more accurate than a flawed credit report to go on?

What if? it mattered more about who you and what you are dong for your future? Rather than how old you are or when you lost your job?

But are you afraid that there will be no people to run it? I am already finding people with expertise who understand that getting no-interest money into the hands of American small business owners, home owners and entrepreneurs is the best way out of our current economic crisis.

What if? there were no huge salaries to pay?

What if? talented, genius people with expertise were willing to serve at modest pay to do this? There are such people. I have met some. They are people of integrity and principle, first and foremost.

What if? there were no stockholders to pay?

What if? the bank was a Low-income Limited Liability Corporation? Commonly referred to as an L3C?

What if ? The bank was in business to be a service to its customers?

What if? instead of finding ways to get more money out of its customers, in terms of fees, penalties, and charges, the bank was founded in order to find ways to get more services for its customers?

What if? we could start now?

We are already beginning.

Answer here or at Unlimited-future@mail.com

Let's build our own better tomorrow.


  1. Yes, a 'For-Benefit' Infrastructure is greatly needed (i.e. those that are designed to serve stakeholders, vs. those designed to take from them).

    I'm looking forward to catching up with you on this matter as we have this and many other infrastructure elements in various stages of development. We'll be glad to help.

    S.D.G., Dale Collier
    Manager, Kings Counsel & Trust

  2. Thank you Dale, It was great talking with you. Looking forward to moving this forward. Best to you, KHW

  3. Thank you to those who have contacted me. The charitable bank now has a name: Our Bank and an email: Our-Bank@mail.com