How To End Poverty, and do it without spending one cent – Community Bank Accounts

Let’s collectively end poverty on the planet. What is needed is both a will and a way. The will is up to each person, but the way – a new way built on the micro loans idea – is easy.

1. Set up CBA’s, community bank accounts. A government, (or any group of investors, or any interested individual) can set it up. They put money into a community bank account, and the interest goes to the community. (Some could go as return on the capital depending on the agreement.) The capital is never spent. Plus the banks have money to loan to the community.


The money or capital that is invested in the CBA’s is never spent. Thus this doesn’t cost a penny ever.

The interest on the money – that comes in every month forever throughout time – goes to the community. It empowers them to improve their community any positive way they choose. Monthly the neighborhood meets and determines how to best spend the money to resolve the problems of that neighborhood (or community, or small town or county).

There are checks and balances to make sure they use the money wisely. Depositors can remove their capital if they don’t approve of how the interest is spent by the community. The community must openly show investors months ahead of time, how they will spent their interest to help the community

For any bank to get the large account it must agree to only loan that money to that neighborhood, or it will loose the account and the investors will take their money to another bank. Thus benefits are doubled.

Therefore no capital is EVER spent, the INTEREST on the money comes in every month this year, next year, and forever and ever and ever. The interest on the money empowers the community (or county, or state, or any selected group) to resolve their problems, not with charity – which most hate – but with investments. The account allows the banks to make loans to that area as well. Thus the money becomes twice as much – it generates interest, and it allows the bank cash to loan.

This video shows how the money used for a single war, could eliminate

all poverty in the US.

Tom Hendricks
(editor of the 18 year old zine Musea)
ZINE, Named one of the best ZINES by UTNE magazine. Featured on ROCKETBOOM)
MUSIC, 5 full CD’s of free Post-Bands Music)
BLOG for Musea, Art Contests, Weekly E-mail Messages)


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10 Responses to “How To End Poverty, and do it without spending one cent – Community Bank Accounts”

  1. musea Says:

    The government funds would be best, remember they just print it up! Bu seriously though, it would never not be there if the government needed to bring it back – so there is no way they loose a penny. Then too there is this argument, what better protects our country, an end to poverty, or more weapons we don’t need now.

  2. musea Says:

    What if poverty could be wiped out without spending a penny? It can.
    Take the cost of one war as capital, put it in state banks, and use only the interest on the money to wipe out poverty. How much could you get in interest? About 50 million a month – plus the state banks have money to loan those same communities. CBA’s could end all poverty without spending a penny. So why the reluctance to do it?
    1. People resist new ideas even when they end major problems
    2. The prodigal son effect – refuse to help the poor because, even though it would not cost anyone a penny, we somehow feel they have not earned it like the hard working son has – nonsense.

  3. 1111 Says:

    It’s nice that you are looking into ways to end poverty, one cannot help but admire your effort. It’s important that when approaching such topics you put the time in to do research and educate yourself so that you do more good than harm when propagating ideas and establishing a following or convincing “investors” – clearly one would be required if you are ever to turn your ideas into reality.

    firstly, money has intrinsic cost, due to inflation – money sitting around not doing work automatically equates to loss.. so the idea that you are not spending a penny is incorrect.

    secondly, money that is in circulation actually creates economic wealth due to the fact it circulates throughout society – this is referred to in technical terms as the money multiplier effect, whereby say for example $1000 circulates through 50 different people/companies/entities in a given month. The overall effect is $50,000 worth of value created in that community. By having a huge amount of money sitting around, you are actually doing more bad than good as you are destroying value.

    Thirdly, the money created for the Iraq war, or any money in amounts such as you mention – billions – is created by the central banks at a much lower interest rates than the 6% you mention. So that doesn’t make much sense in terms of calculations, no one would create 500 billion and then give it out, so that they can loose 3-5% on it.

    Fourthly, banks don’t “loan” the money that you deposit with them, they create new money with each and every loan, thereby expanding the money supply, so your idea of putting such vast amounts of capital in a bank and having them loan it out isn’t necessary due to the fractional reserve banking system that currently presides over the entire world.

    Musea, if you are serious about helping impoverished people or nations for that matter, please educate yourself and put your energy towards a proper direction. Here’s a place where you can spend a few months reading up on money mechanics. Good luck and see where that takes you!

    • musea Says:

      Thanks for those first kind thoughts. Now on to your points in order
      1. Inflation. You seem to suggest that inflation happens 100% of the time. It does not. When it does the CBA’s would loose, but less than the markets. When there is no inflation they would do fine. By taking money out of the markets, they would not only help millions, but they could possibly stabilize the excess swings in the economy
      2. The money would be circulated through millions of people. More so than just about any other way. What I think you oppose is that it would go from bottom up instead of the usual trickle down.
      3. The central bank may be the prime supporter of CBA’s.
      4. Some banks do, depending on size. Find those or put the money in credit unions, (or even perhaps the markets or bonds).
      5. There is a real danger to predict ‘maybe problems’ on innovative ideas, just to avoid doing anything new. Remember I can predict ‘maybe solutions’ to solve them!

  4. musea Says:

    Here is an update – the war in Iraq cost almost 4 times what I used in the video example. That means 4 times more capital for the CBA’s.

  5. musea Says:

    Found this on Facebook:
    Cost of ending world hunger 30 billion
    US defense spending per year 737 billion
    Which spending option makes our country more secure? Ending hunger! Ending poverty! There are even ways to do it by using that money as capital, so it is never spent – not one dime – and only the interest goes to ending poverty.

  6. musea Says:

    Last night I was thinking about CBA’s and a couple of things came to mind – one sixth of the Iraq war money would be enough at 500 billion to generate the interest. CBA’s would not be controlled by the fed gov, the state gov, or even the county or city gov. It would be controlled by the community – community bank account. This vast amount of money would be outside the up and down stock market, and might settle that down too. After a while CBA’s might replace many assorted welfare programs by doing all the same good without the bureaucracy. So helping end poverty could help everyone. Trickle down? No, build up – yes.

  7. musea Says:

    500 billion is a small part of the real cost of the Iraq war. Different sources have different figures for the final cost: 1.7 trillion to 6 trillion. At the low end the 500 billion to end poverty would be one third of the cost of war. At the high end it would be one twelfth.

  8. musea Says:

    Start with a lottery. Each year pick 5 states that each get 10 billion. That equals 50 billion a year for ten years. Add US territories too.

  9. musea Says:

    Start with dividing the country into 5 parts of 10 states.
    Example, North East, Great Lakes, South, Midwest, West. Then each year for ten years choose one state from each region. Set up a state bank or credit union with 10 Billion dollars. That capital is never spent, the interest that comes in every month from then on forever, goes to that state one country at a time, and loans can only go to businesses in that state. (Be sure to include D.C. and P.R., etc.). This is a way to end poverty in the US through economic development that builds up the nation. Money invested at a negotiated 6% = 600 million a year or 50 million a month.

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