My question would be, if banks could already do this why wouldn't one of them would have offered 5% CDs and 4% mortgages and cornered the market by now?

Also, I believe this scheme only works with the backing of the Federal Reserve and the "full faith and credit of the United States Government" across the entire U.S. banking and financial system. Not sure how it would translate to a single state-run bank. And I suppose no other banks would be allowed to operate in Florida for this to work. So the banks and insurance companies are instant enemies. Doubtful anyone could get elected against that, much less get the legislation through.

At any rate, it's a fun idea. And the guy makes some valid points in his definition of "carefreeism." I'm down with that!

I like the term, I'll have to read more about "carefreeism".

So the banks and insurance companies are instant enemies

I love the guys idea! This kind of out of the box thinking could be the way out the vice grip the banks have on us now!

Another idea that works is a faith based insurance plan. MSNBC talked with members and so far none have had any problems. A fee is paid each month then when there is a need for health insurance the company or coop pays all but a 300 dollar deductible.
Their only rules are the members can not smoke, drink in moderation and do not practice sex outside of marriage.

The Florida idea really is exciting!

In order for fractional reserve banking to work, there has to exist the ability of the central bank to access/borrow/print the money that it lends out. Where does that come from in this system???

Also, the member banks have to loan out the money at a HIGHER rate than they are paying to borrow it from their customers and the central bank (bank of Florida in this case). Borrowing at 6% and loaning at 2-3% causes you to LOSE money not make it.

It sounds great but unless Florida seceeds and starts printing its own fiat currency, it will never work. And even then, it will only work for so long as we are now seeing with the national model.

Ellen Brown has been beating the drum for state-owned banks all year. The State of North Dakota has profitably run its own bank since 1919.
(link...)

how it works with widespread support among the public and the independent banking community.

[Update] I also posted this link on Ward Cammack's facebook page yesterday and asked what he thought about the idea:

Potentially good. It would need to follow the same regulations as commercial banks and have significant oversight given the problems we have seen in the TN bond fund.