North Dakota, the only state with its own bank, is the only state with a budget surplus, and lowest unemployment rate in USA.
Commonwealth Bank of Australia, government-owned until privatized in the 1990s can make loans without capital.
Denison Miller, the Bank’s first Governor, said the Bank did not need capital because “it is backed by the entire wealth and credit of Australia.”
Denison Miller, and ardent proponent, King O’Malley, were bankers and knew banks create the “money” they lend by writing accounting entries in deposit accounts of borrowers.
Reginald McKenna, Chancellor of the Exchequer, told shareholders of Midland Bank :
“Banks can, and do, create and destroy money. The amount of money in existence varies only with the action of the banks in increasing or decreasing deposits and bank purchases.''
Ralph Hawtrey, Assistant Under Secretary to the British Treasury wrote..........
“When a bank lends, it creates money out of nothing.”