Socialist, yes. Better than the Federal Reserve System, yes. Are tax payers on the hook for fractional reserve banking losses? You betcha.
This little bank just lives on the fact that the US Federal Reserve System is so hosed up. And guess what this little bank is actually like all the other non-financial instutitions in the USA on the hook for the US Federal Reserve System anyway.
The article failed to mention that this state run bank versus Federal run is anything but new. Like their Rhode Island counterparts, the tax payers of North Dakota are on the hook for any losses by the bank. The bank is smartly not a FDIC regulated institution but still practices Fractional Reserve Lending and is therefore subject to bank runs like all the other Federal Reserve Banks.
Would I prefer to deposit money here versus my banks. It does not matter because the government at all levels is intertwined with the the banking system.
This bank is the farthest I know of away from the US fascist banking system.
And they are NOT a fractional reserve bank which means unlike the NDB they can not stiff tax payers and currency holders if they go bust.
Anyone taking bets for how long until this free bank suffers the same fate as the Liberty Dollars?