How The New York Times Spreads Monetary Disinformation

In the first of a series on monetary disinformation spread by the media, AMI Researcher and Chapter Leader Dick Distelhorst dismantles each paragraph of a recent effort by The New York Times.  The article is reproduced as presented on The New York Times’ web site, interspersed with Dick’s piercing commentary in bold italics.

Mortgage Securities It Holds Pose Sticky Problem for Fed

By BINYAMIN APPELBAUM

Published: July 22, 2010

WASHINGTON — The Federal Reserve provided most of the money for new mortgages in the United States last year, effectively lending more than $1 trillion to American homeowners.

No, the Fed was effectively providing more than $1 trillion in new “excess reserves” to the “too-big-to-fail” banks and saving those banks by buying the toxic mortgages held by those banks from them at full price.

Now the legacy of that extraordinary intervention is hanging over the central bank as it faces growing demands for an encore to help revive the flagging economy.

State Governments in Deficit Crisis

by Robert Poteat

“States of Crisis for 46 Governments Facing Greek-Style Deficits” headlines a Bloomberg website article, June 26, 2010, by Edward Robinson, referring to states of the United States.  The plight of California is one of the worst.  California’s economy, if a nation, would rank ninth in the world.  The United States federal government is in huge deficit, also.  How can this happen in the once richest nation of the world and still rated as the world’s largest economy?

The economic conditions cannot be caused by devastating acts of nature such as drought, freezes, famine by insects, floods, hurricanes, volcanic eruption, etc.  While some of these have been experienced, the United States is too large and diverse for them to cause such general havoc.

Here’s the Blueprint for Prosperity for All

by Dick Distelhorst, AMI Researcher and Chapter Leader

Burlington, Iowa.  June 16, 2010.

Warren Buffet recently said, “There is a class war going on and my class is winning.”   He is certainly correct.  In September of 2008 when the greed and recklessness of the “too-big-to-fail” banks caused millions of U. S. citizens to lose their jobs, their homes, much of their savings, even their pensions, who did our government bail out, the big banks or the American people?

We know the answer.  The Bush and the Obama administrations made trillions of dollars available to the big banks, now those same big banks are reporting all-time record profits and paying themselves huge bonuses.

There is a way to bail out the American people instead of the very wealthy and return our nation to prosperity.   All we have to do is look at past history.  The answers we need are there.

Inflation: Too much money chasing too few goods? – Hardly!

That more money is available than goods is a nearly axiomatic definition of inflation in economic texts, media, and politics. But empirical data from direct observation indicates it is not true in the current economic environment.

One can find many retail businesses offering discounts, and failing businesses; while advertising is a multi-billion dollar enterprise. One can easily find retail stores full of merchandise for sale. This is direct evidence that there is not enough money to liquidate what is available for sale. Yet, prices keep going up. Therefore, it cannot be too much money for consumption causing price increases.

Consumer debt is about $2.5 trillions for consumer goods that have been “sold” but have not yet been paid for; and, still, retail stores are full of merchandise. Advertising of sales discounts is constant along with easy credit.

Inflation is often expressed as rising prices, but many things such as scarcity, seasons, fads, war, and weather affect prices along with the phenomenon of inflation.

…Read more at http://www.monetary.org/moneyscenesix.htm

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Exciting News!!

The AMI’s Fifth Annual Monetary Reform Conference was our best one yet thanks to the quality speakers and participants who were a part of the weekend in Chicago. Stephen gives a big thank you to the intelligent young activists who came to help out at the conference.

We also received some great news from Congressman Kucinich! He called Stephen to announce that he would be introducing the American Monetary and Financial Security Act (formally the AMA) into Congress very soon. This is an important time to get everyone involved in bringing awareness to the issue of monetary reform. Keep checking back here and at our website for more news on this important development!!

Why States Going into the Banking Business Would be a Distraction, not a Solution to their Fiscal Problem by Jamie Walton, AMI researcher

“We may not be able to stop them, but we can join them. We the people need to play the bankers’ game ourselves.”¹ – that was written by one of the promoters of the notion that the state governments should go into the fractional reserve banking business to beat Wall Street at its own game and solve their fiscal problems.

What an insult to humanity! How about a dose of morality and common sense. Isn’t that like saying: “We’re victims of organized financial crime, so lets join the criminals!”

Trying to beat Wall Street at its own game is obviously not the answer. As Albert Einstein once said, “We can’t solve problems by using the same kind of thinking we used when we created them.”

…Read more at
http://www.monetary.org/moneyscenefive.html

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The AMI Monetary Reform Description Also Describes Our BLOG principles

The Following is from the AMI Monetary Reform Conference brochure:

Dear Friends,

The American Monetary Institute is proud to announce its 3^rd annual Monetary Reform Conference in Chicago. Our conferences have launched the modern grass roots movement for U.S. monetary reform and thereby World reform. Make your plans now to attend this important meeting in beautiful downtown Chicago. Our money system clearly needs a serious overhaul to secure economic justice and peace as we enter the 3^rd Millennium. It’s evident that true reform, not palliatives, are necessary to  move humanity back from the brink of nuclear war; away from a World dominated by fraud, warfare and ugliness and toward a World of justice and beauty. The conference focuses on minimum initial steps to begin this process and put time on the side of humanity instead of against us. You may receive this announcement amidst very depressing news and events, but we urge you to avoid discouragement and instead join with us in this adventure to achieve positive results for America and the world.

A Different Kind of Monetary Conference

The situation in which knowledgeable monetary reformers find ourselves is that after years of studying monetary history and theory, we already know many if not most of the broad shapes that monetary reform should take. We know from experience that these views have stood the test of time and many challenges from those with less experience in the field or operating under misconceptions or pursuing non-reform agendas. Rather than merely arguing over these main themes, it is time for those of us who understand, to move forward to implement those elements that we know must be a part of good reform.

What are these broad national parameters supported by over 3000 years of history? That the control of money systems should shift away from private control toward governmental control. Away from commodity money notions; away from fractional reserve banking – monetizing private credits and loaning them into circulation at interest. Towards money issued interest free by government and spent into circulation for the common good. The system must be morally grounded in fairness.

Not seeking blind trust, we’ll continue educating and explaining why the proposals are beneficial and moral and continue to present the historical evidence demonstrating that. We’ll answer any serious challenges, and those arising from plain misunderstanding. We may invite selected spokesmen for differing reforms to succinctly present their case. But we’ll do it within a context of advancing the reform agenda, making necessary adjustments as we proceed. Dissenters obviously don’t have to join in the reform phase; but neither need we procrastinate, waiting for all to experience their monetary epiphanies, before moving forward. The direction of world events requires that we begin a solid program now.

Themes of the Conference

Therefore the AMI annual conferences focus on three broad areas:

The Monetary Reforms: The main focus of the conferences – Researchers will describe and make the case for the kind of monetary reforms advocated, presenting both the logical and historical basis for them, and the mechanics of implementing them. Extensive question and answer periods and panel discussions can air doubts or concerns regarding the desirability of the reforms and suggest refinements. Included will be discussions of research and thinking methodology. Two monetary reform acts will be analyzed including strategies for getting it supported.

Achieving the Reforms: Selected Political, Social and Monetary Activists will give the benefit of their experience in educating, raising public awareness, organizing and motivating people and governmental bodies to influence public policy decisions

Using the Reforms: Presentations on how a properly reconstituted money power within government will be effectively used to “promote the general welfare”. These will focus on several areas:

Infrastructure Programs including education and health, upgrading America’s crumbling infrastructure, including futuristic designs well within the reach of today’s technology and economy, to create hospitable, clean, cities of the future.

Farming Parity proposals for maintaining the existence of family controlled environmentally sound farming.

Educational proposals providing funding from sources other than middle-class property taxes.

Medical Care proposals which more effectively and fairly distribute the benefits of our medical technologies.

Each area identifies another constituency which will support monetary reform.

This conference is open to the public*, and to properly organize it the AMI requires a minimum donation of $295 per attendee; $465 (to include significant other). For early registrations postmarked by March 30 the minimum donation is $215. This includes substantial conference materials and aids, daily coffee breaks, a Get Acquainted Reception and a Celebration Dinner and beach barbecue. Hotel and travel costs are separate at group discounts. We say minimum donation because affluent attendees who want to help out with larger donations are strongly encouraged to do so. It enables us to extend attendance scholarships to students. Looking forward very much to seeing you and advancing monetary reform to the next level.

Stephen Zarlenga, Director, American MonetaryInstitute