How The New York Times Spreads Monetary Disinformation

July 23, 2010

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.

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State Governments in Deficit Crisis

July 19, 2010

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.

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Here’s the Blueprint for Prosperity for All

July 5, 2010

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.

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