Funding Through the National Infrastructure Bank

"Critically needed water and other infrastructure projects can be funded without tapping the federal budget, with funds generated through a national infrastructure bank. Unlike the Reconstruction Finance Corporation, the publicly-owned bank proposed in HR 3339 is designed to be a true depository bank, which can leverage its funds as all depository banks are allowed to do: with a 10% capital requirement, it can leverage $1 in capital into $10 in loans.For capitalization, the NIB will follow the model of Alexander Hamilton’s First U.S. Bank: shares in the bank will be swapped for existing U.S. bonds. The shares will earn a 2% dividend and are non-voting. Control of the bank and its operations will remain with the public, an independent board of directors, and a panel of carefully selected non-partisan experts, precluding manipulation for political ends.The NIB is projected to lend $5 trillion over 10 years, or roughly $500 billion per year.  That means each year the NIB will have to add $50 billion in new capitalization in the form of debt for equity swaps. The incentive for investors is the extra 2% yield the NIB provides on its preferred stock, plus a government guarantee. The U.S. Postal Service, the fourth largest holder of U.S. Treasuries globally, is one possible investor. Others are pension funds and builder associations with investment portfolios, all of which need a certain number of triple-A-rated investments. NIB bonds will have a better rate of return than Treasuries, while achieving the laudable purpose of filling the critical infrastructure gap.To clear checks from the newly-created loan deposits, the NIB will bring in cash from incoming customer deposits, loan repayments, NIB-issued bonds, and/or borrowing from the Federal Reserve. How much cash it will need and its timing depends on how many infrastructure companies maintain their deposit accounts with the NIB.The $5 trillion the NIB lends over 10 years will add $5 trillion to the total money supply; but the “productive” loans it will be making are the sort that do not add to price inflation. In fact, they can reduce it – by raising GDP growth, increasing the supply side of the supply-versus-demand inflation equation.America achieved its greatest-ever infrastructure campaign in the midst of the Great Depression. We can do that again today, and we can do it with the same machinery: off-budget financing through a government-owned national financial institution."

https://www.globalresearch.ca/how-green-our-parched-farmlands-finance-critical-infrastructure/5792279

This is misleading (the title).  I really saw nothing in the article about greening parched farmlands, yada yada.  It was mostly about China's economy, and about American banks.  (?)  What the hell does that have to do with greening America's farmland??