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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Archive for January 3rd, 2011

AMI Perpetrated Innocent Fraud

Posted by WARREN MOSLER on 3rd January 2011

For all practical purposes, fractional reserve banking ended in 1934 when we went off the gold standard. Today’s banking is not reserve constrained.

At best, this is a case of innocent fraud.

Telling that Kucinich was convinced to go along with this.

Nor are there any critics in the media I’ve seen who know any better.

AMI wrote:
Dear Friends of the American Monetary Institute,
(Please pardon multiple emails)
 

A positive note and appeal on the last day of the year:
 

On December 17th, major progress occurred towards monetary reform when Congressman Dennis Kucinich (D, Ohio) introduced legislation which changes a corrupt private money system using bank credit for money, into to a sustainable and just system based on using government created money, under our constitutional system of checks and balances. It ends whats known as fractional reserve banking!
 

He called it the National Employment Emergency Defense Act (“NEED”) HR 6550 because it would solve the unemployment crisis our nation is in. It solves many other crises as well. Please ask your representatives, whether Republican or Democratic to read it here http://www.govtrack.us/congress/billtext.xpd?bill=h111-6550
 

This is an important monetary step forward for our people and for humanity. Progress consists of taking such steps in the right direction, educating people and gaining their support. It will take time and a sustained effort. It needs to be supported, both verbally and financially. We deeply thank those of you who are giving such support.
 

Now if you have not gotten to that stage yet, the American Monetary Institute does need your help: If you understand the importance of what we do, and appreciate the work we do, please make a tax deductible donation to the institute of $25, $50 or more, by sending your check payable to the:
 

American Monetary Institute
P.O. Box 601,
Valatie, NY 12184
 

You can also donate through PayPal using the donate buttons at our website at http://www.monetary.org
If you have not yet read The Lost Science of Money book, this is a good time to order it, at our home page.
 

The stage has been set by Congressman Kucinich for 2011 to be an important year to discuss and gain support for this “NEED” Act, HR 6550. Thats a part of what we do. Please help the American Monetary Institute continue to develop materials that educate our citizenry on how beneficial this non-partisan Act would be for our nation and give what you can.
 

I hope you had good Christmas holidays and wish you a Happy New Year!
Warm regards,
Stephen Zarlenga

Posted in Email | 57 Comments »

ISM-Strong

Posted by WARREN MOSLER on 3rd January 2011

Karim writes:

* Headline came in as expected, but details strong.
* Gap between new orders and inventories (which declined sharply for both suppliers and customers) at highest since May 2010.
* Employment down modestly but still at high level.
* Prices paid remains elevated but appears of little consequence for inflation; Prices Paid ranged from 60 to 80 for most of 2010 and inflation slowed throughout the year.

Anecdotes:
* “Company outlook looks positive into 2011. Solid revenue growth across the globe driven by strong volume in Q3 and Q4 2010.” (Chemical Products)
* “We continue to see strong demand for our product in Europe and Asia.” (Electrical Equipment, Appliances & Components)
* “The end of the year is surprisingly busy.” (Computer & Electronic Products)
* “Business remains slow, while vendors clamor for increases that should have no foundation in economics.” (Nonmetallic Mineral Products)
* “Strong pressure still exists on raw material prices in almost every area. It is unclear as to whether they can get them.” (Plastics & Rubber Products)

=====Dec 2010 | Nov 2010

Index ……………….57.0 56.6
Prices paid…………72.5 69.5
Production………..60.7 55.0
New orders………. 60.9 56.6
Inventories………..51.8 56.7
Customer inv…….40.0 45.5
Employment………55.7 57.5
Export orders……54.5 57.0
Imports……………..50.5 53.0

Posted in Karim | 3 Comments »