Valance Weekly Economic Reports

When I look at the charts in general things do not look good, and today’s employment report looks like more of same as well.

The problem remains a massive lack of aggregate demand.

Valance Weekly Report

Highlights
US – Manufacturing confidence rebounds
EU – Consumer Prices held at 2.7% in June
JN – Q2 Tankan Survey weak; BoJ reports regional improvements
UK – Mfg PMI followed the global trend
CA – Real GDP stalled in April
AU – RBA held rates still but turned dovish
NZ – Business surveys were upbeat

Modern Monetary Theory: The Last Progressive Left Standing

Modern Monetary Theory: The Last Progressive Left Standing

By Warren Mosler

Mosler Photon in Automobile Magazine

First Drive: Mosler Photon

By Jason Cammisa
Photography by Andrew Yeadon

From the June, 2011 issue of Automobile Magazine

…When you hear the name Mosler, you should instead immediately think of the MT900S, the supercar that the company began selling here at the end of 2006. The MT900S is indeed quite nice to look at, but this car’s ace in the hole lies hidden on a spreadsheet. Buried in the specifications for the track-focused but street-legal variant of the MT900S, the Photon, is one astonishing measurement: its curb weight is a scant 2394 pounds. This is a car as long as a Toyota Camry and as wide as a 4Runner, but it weighs about 50 pounds less than a Mazda Miata — and that’s despite having a 7.0-liter V-8 engine.

…While mainstream exoticar makers (now there’s an oxymoron!) like Lamborghini are just now starting to get serious about lightweight construction methods, Mosler has been quietly building featherweight monsters crafted from carbon fiber and Kevlar for years. This kind of cutting-edge engineering isn’t what you’d normally expect from a tiny, low-volume manufacturer from Florida, but it’s the result of founder Warren Mosler’s clear mission: to build amazing cars,

…J. Todd Wagner surprised us by showing up and handing over the keys to a $394,500 Photon. At the time, we knew basically nothing about the car. As we were strapping ourselves in, every eye in the paddock was on the orange thing with the exhaust note so violent it could set off air-raid alarms. Wagner yelled over the exhaust, rattling off a ludicrous horsepower number (550), that ridiculous curb weight, and explaining that the Photon — which has a custom Hewland sequential-manual racing gearbox — uses a flywheel with about as much rotational inertia as a spinning, dying housefly.

…Having never once been around PBIR’s track, and not even knowing if the Photon had antilock brakes (it doesn’t, we would learn), we begged for a pace car. When a volunteer stepped forward, he hopped into his track-prepped Porsche 911 GT3 on slicks. When we were told that he was the local Porsche club’s fastest instructor, we asked him to take it easy.

He didn’t bother — and we’re glad he didn’t. The Mosler’s vast, curved windshield provided a first-class, front-row view of the rear-engine Porsche scrambling its way around corners, oversteering, understeering, and countersteering. The Photon followed along happily, nowhere near its limits, with a big-block scream from the General Motors LS7 easily drowning out the 911’s flat-six wail — but only for a second at a time. Any longer wide-open-throttle blasts and the Porsche would have had a whole car shoved up its engine-filled arse. In steady-state corners, the Photon might understeer and its steering might not transmit much information about what the front tires are doing, but at the g-forces it generates, your author’s spinal cord wasn’t transmitting much useful information, either.

We had time for only a few laps, but the Photon’s speed, cornering, and composure is dramatic. The Photon is clearly more than a big engine strapped into a light car — indeed, a decade-long relationship with Siemens has given Mosler access to supercomputers for seriously advanced engineering.

The lightning-quick carbon-fiber MT900R qualified on the class pole for the 24 Hours of Daytona three consecutive years and scored a GTS win in 2003. The reward for this achievement? The car was essentially banned by Grand-Am, and it no longer races in the United States. But the MT900R and the MT900GT3 continue to win GT races and championships in Europe, Asia, and Australia. Ironically, the chassis of these all-American cars are assembled at Rollcentre Racing in England. At last report, no fewer than twenty-five cars were being campaigned worldwide.

John Donne remembered

For Whom Bell Tolls

“No man is an island, entire of itself; every man is a piece of the continent, a part of the main. If a clod be washed away by the sea, Europe is the less, as well as if a promontory were, as well as if a manor of thy friend’s or of thine own were:
any man’s death diminishes me, because I am involved in mankind, and therefore never send to know for whom the bells tolls; it tolls for thee.”

John Donne
Devotions upon
Emergent Occasions, no. 17
(Meditation)
1624 (published)

BBC News – World Bank president: ‘One shock away from crisis’

Glad they understand the real world problem.

The problem is their policy recommendations that cause these conditions in the first place.

And now they are asking G20 nations who they’ve led to believe they are on the brink of becoming the next Greece to pledge financial support.

World Bank president: ‘One shock away from crisis’

April 17 (BBC) — The president of the World Bank has warned that the world is “one shock away from a full-blown crisis”.

Robert Zoellick cited rising food prices as the main threat to poor nations who risk “losing a generation”.

He was speaking in Washington at the end of the spring meetings of the World Bank and International Monetary Fund.

Meanwhile, G20 finance chiefs, who also met in Washington, pledged financial support to help new governments in the Middle East and North Africa.

Mr Zoellick said such support was vital.

“The crisis in the Middle East and North Africa underscores how we need to put the conclusions from our latest world development report into practice. The report highlighted the importance of citizen security, justice and jobs,” he said.

He also called for the World Bank to act quickly to support reforms in the region.

“Waiting for the situation to stabilise will mean lost opportunities. In revolutionary moments the status quo is not a winning hand.”

At the Washington meetings, turmoil in the Middle East, volatile oil prices and high unemployment were also discussed.

IMF chief Dominique Strauss-Kahn raised particular concerns about high levels of unemployment among young people.

“It’s probably too much to say that it’s a jobless recovery, but it’s certainly a recovery with not enough jobs,” he said.

“Especially because of youth unemployment… there is now a risk that this will be turned into a life sentence, and that there is a possibility of a lost generation,” he said.

UMKC Honor Roll: MMT/PH.D Graduate Students

A very special thanks to all of you who help support our grad students.

As you can see from the attached list, many are now out spreading the word at the university level.

Also, Jim is still open to donations to the UMKC Ph.D program.

Hi Warren

I hope this finds you well.


I confess to exasperation with the economic nonsense about debt and deficits—and much else. I don’t know if its mendacity or stupidity—both perhaps. Those in office who know better, or should, are not stepping up and the steam roller moves on.

On a brighter note our department is a joy. The faculty are busy and doing good things and our students are the best ever. We now have 52 Ph.D. students, the largest program in the region, and have admitted several for next year. The masters program has 84 students, an all time high. The best master’s students often apply for the Ph.D. The faculty and students in our department have invested a great deal to build what we consider a highly successful program. I have attached a list of our Ph.D. graduates. You can see from the list they are doing well. Many are teaching and helping spread the ideas they learned at UMKC. They also send us students so we have a positive feedback going. With your support and intellectual commitment our department occupies an important spot in economics education.

Also I wanted you to know that 2011-12 will be my last year as chair. I am going to teach more and try to finish several papers and a book that have languished too long.

Warmest regards
Jim

Ph.D Grads

Willadee Waymeyer – Mid America Nazerene University
Jennifer Golec
Lana Ellis
Zarniah Hamid – University of Malayasia
Zohrah Nikina – University of California-Berkeley
Mutaz Nabulsi – Sprint Corporation
Nickolas Pologeorgous
Jason White – Northwest Missouri State University
Kurt Kruger – John Ward Associates
Doug Bowles – University of Missouri-Kansas City
Myles Gartland – Rockhurst University
Linwood Tauheed – University of Missouri-Kansas City
John Jumara – Park University
Robert Scott – Monmouth State
Jairo Parada – Colombia Federal University
Joelle Leclaire – Buffalo State University
Eric Tymoigne – Lewis and Clark College
Fadell Kaboub – Denison College
Robert Spalding – U.S. Air Force
Zadravka Todorova – Wright State University
Doug Meador – St. Francis University
Yan Liang – Willamette University
Ta He Jo – Buffalo State University
Linda Hauner – Commerce bank
David Harris – Benedictine College
Pavlina Tcherneva – Franklin & Marshall College
Michael Murray – Central College, Iowa
Jeremy O’Connor – Rockhurst University
Felipe Rezende – Hobart & William Smith
Flavia Dantes – Cortland College, New York