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Khavari: The era of commercial banks is over; state banks are the future.

Posted on 20 November 2009 by admin

Farid Khavari

Farid Khavari

Miami, FL   — Noted economist Farid Khavari, a  Democratic candidate for Florida governor, has gained national and international attention for his plan to create a state-owned bank in Florida.

“Not since the Great Depression has it been so clear,” said Khavari. “We need banks that work for the benefit of the people, not people working for the benefit of the banks. There is no mystery why we are facing another depression: the banks got greedy and stupid, and now they are making us pay for it.

“The economy is collapsing due to lack of demand. The economy needs money, but the banks are cutting credit, and then sucking all the cash out of the economy by raising interest rates to make sure no one has any cash left at the end of the month. The cost of interest is built into the cost of everything. People already work ten years of their lives just to pay interest in one form or another. The Bank of the State of Florida will end that for Floridians. And this model will work for every state.

“We can start the BSF at no cost to taxpayers. We can pay 6% interest on savings. Using the same fractional reserve rules as all banks, we can create $900 of new money through loans for every $100 in deposits. We can loan that $900 in the form of 2% fixed rate 15-year mortgages, for example, and the state can earn $12 every year for every $100 in deposits. That means Floridians can save tens of billions of dollars per year while the state earns billions making it possible for them.

“2% fixed-rate mortgages will create a thousand times more jobs than any so-called stimulus can.  By reducing the total interest cost on a home by over 85%, the average family will save hundreds of thousands of dollars, and that money stays in Florida,” Khavari said.

“State and local government budgets will balance without higher taxes when the BSF cuts interest costs,” Khavari said. “6% BSF credit cards will save people billions per month, money that stays in Florida instead of going to the big banks—and the state will make huge profits on that, too.  Saving billions in interest costs will create millions of jobs without subsidies just by keeping those billions circulating in Florida. Eventually the state will earn enough to reduce and eliminate state and local taxes while every Floridian has economic security in a recession-proof Florida.”

Asked whether a state-owned bank is socialism, Khavari smiled. “Are public schools socialism? Public roads, police and fire protection, municipal water? Socialism is where everyone works for the state. In these cases, and with our Bank of the State of Florida, the state is working for everyone. I call that general capitalism.”

Farid A. Khavari, Ph.D. is an economist and author of nine books, including Environomics. His latest book, Toward a Zero-Cost Economy, is available in stores or for free download at his website,


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Death by Taxes – Hav A Tampa plant closing

Posted on 24 June 2009 by admin

Hav A TampaThe Hav-A-Tampa cigar factory in Tampa will close and lay off 492 employees.

Hav-A-Tampa is a division of Altaic USA Inc., which filed a required notice with the state of Florida that it will shut down its factory at 3901 Riga Blvd. in Tampa and begin the layoffs on Aug. 24.

Some non-manufacturing functions will move to another facility in Brandon, but none of the affected employees will be relocated to that facility, the company said in its notice.

Rick McKenzie, the company’s vice president of human resources, says business has been hurt by rising taxes. A new federal tobacco tax went into effect in April and will help pay for a health insurance program for low-income children.

Congressional Candidate Eddie Adams Jr. gave this statement regarding the closing “There are no good taxes. This is the primary result of taxation on tobacco.  Tobacco has been determined to be a legal product, but Federal government and the state government see this as an easy opportunity to generate money for the Federal and State government.  The more you tax a product or industry the less that product is going to sale.  So now we have Hav A Tampa laying off 500 people that will be looking to the government for handouts.  All because the Federal and State government thought this would be a great way to generate money.”

Congresswoman Kathy Castor’s office did not return our phone call about the plant closing.  Castor has supported federal legislation (HR-1256) that increased taxes on Tobacco products.

The company’s Web site says Hav-A-Tampa cigars were originally trademarked in 1902.

The company operates other production facilities in the Dominican Republic, Honduras, Puerto Rico, Pennsylvania and Virginia.

In addition to Hav-A-Tampa, Altadis hand-made cigar brands include H. Upmann, Playboy, Dutch Masters, Muriel, Phillies and Romeo y Julieta.

On the Web: HAV A TAMPA

Eddie Adams Jr. for Congress


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