Friday, November 5, 2010

News from the Network, Vol. 3, No. 44

Evidently, the Big News this week is the (up to) $600 billion "stimulus" package to be funded by Federal Reserve purchase of U.S. Treasury paper, i.e., "nothing."  As we noted in yesterday's posting, this could, of course, trigger a "hyperinflation" scenario.  The question becomes what to do about it.  It seems obvious by now that the powers-that-be aren't reading this blog as they should.  As for Mr. Obama . . . that guy just won't return any of my calls . . .

Despite the pseudo-jocularity with which we might try to present the situation, it's pretty serious.  Even that is an understatement.  The fact is that the situation is more serious than words can really convey, or, at least, any words of mine.  We have to start getting to door openers, and that means communicating the message more effectively.

Per a discussion we had at CESJ yesterday, it may be that the most easily understood summary of the message that we can convey is that there is a difference between productive credit and non-productive credit.  You don't have to understand banking theory, economic history, political philosophy, or even elementary bookkeeping to understand a few simple facts:
• There are two types of credit.

• The two types of credit are 1) Productive, and 2) Non-productive.

• Productive credit is good credit because it pays for itself.

• Non-productive credit is bad credit because it doesn't pay for itself.

• Credit for capital investment is good credit.

• Credit for consumption, government spending, and speculation is bad credit.

• Our is economy is currently running on bad credit.

• Our economy needs to run on good credit.

• Capital Homesteading would make good credit available to everyone.

• We need Capital Homesteading now.
Don't worry too much about the details.  We've got the details.  Just get the message out.  If someone wants more detail, there is the CESJ website, the site of the American Revolutionary Party, this blog, and a number of publications that you might have seen mentioned once or twice on this blog.  If you do your part, we'll have more than this to report:
• In order to supply "the troops" with materials, we are pushing ahead on implementing various social media.  This will, we believe, allow us to reach a broader audience with our publications, news reports, and other media campaigns.  Since we hope to have something ready very soon, please go through your lists of contacts and see which ones might be open to receiving such items via e-mail.  DO NOT SEND US THE E-MAILS.  Rather, be prepared to "forward" what we send you so that we do not get classified as "spam."

• We plan on making the marketing of Moulton's The Formation of Capital the initial effort.  Moulton has "a name" and an affiliation with a known and respected organization, the Brookings Institution, the first "think tank."  Moulton's presentation of the case for what Kelso called "pure credit" applied to financing new capital formation is the heart of the Just Third Way's financial strategy.  It also goes directly contrary to all economic systems that assume that the only source of financing for new capital formation is existing accumulations of savings.

• We have followed up with the Brookings Institution in order to garner some positive comments and endorsements from them.  As of this writing we have not gotten a response . . . but we only sent something yesterday.  If you can open a door to "name" commentators or reviewers who will comment on or endorse The Formation of Capital, or can get a publication (newspaper, magazine, blog, radio, television, etc.) to give favorable mention, do not hesitate to do so.  Your local media outlets might actually be looking for something hopeful to publish in light of the $600 billion price tag we're being saddled with to finance gains for Wall Street gamblers and political porkers.  Many religious newspapers and magazines, for example, should be more open to something positive and hopeful than the secular press that feeds off despair.

• The bottom line is that it depends on YOU.
That's what we have for this week, at least from my remote location in the wilds of Pennsylvania.  For once, we're not asking you to send in news items to us.  Instead, get ready to pitch items to your local media, and report your success to us.

#30#

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