Dear Friends of the American MONETARY Institute,

Monetary reform is advancing rapidly, because it must, in order to resolve our national crisis.
There are two links below that are MUST viewing, and please forward them to your email lists.

On this link http://cspanjunkie.org/?p=1724 Congressman Dennis Kucinich describes the economic and monetary crisis for one hour on the floor of the House of Representatives. You can see what a devoted and great leader he is. View it all. At about 40 minutes in, he discusses Stephen Zarlenga and our monetary reform proposal – a must see!

Here, http://votersthink.org/?p=1073 Dennis in just over one minute describes the reform program in summary.

Please enjoy the second link immediately, and set aside an hour to view the first link.

The internet is allowing a marvelous communication process to take place in our land, in this time of crisis. Please use it fully, forwarding this to your friends and let me know their reactions.

The full text of the American Monetary Act can be viewed at
http://www.monetary.org/amacolorpamphlet.pdf

Warm regards and thanks for your attention,

Stephen Zarlenga
Director,
American Monetary Institute

Regards

Paul

It’s related to a peak in risk aversion (as seen in the 10 year treasury chart), and a likely bottoming in oil prices. Money are likely flowing into the norwegian currency because foreigners are loading up on norwegian stocks, because they think oil have bottomed out.

http://finance.yahoo.com/echarts?s=USO#chart1:symbol=uso;range=5y;compare=^tnx;indicator=split+volume;charttype=line;crosshair=cross;ohlcvalues=0;logscale=on;source=undefined

Most don’t acknowledge it but 1932-1949 inflation was higher year on year, than in the seventies in the worst period, with wage and price controls. It’s the same thing that’s likely to happen now, once the economy pick up.

Thanks for the reminder about the guarantee. I don’t trust it and will not rely on it. How can the government cough up over $2T in cash. They can’t. If the guarantee is required they will force marriages between banks and keep the electronic entries alive or they will issue IOUs.

If a run on the banks starts, the government could restrict the amount a depositor could remove (for a time). Were they to do that you will be able to buy anything you want. As long as you have money outside of the electronic system.

If the guarantee is not needed and I am outside the electronic system, I won’t lose that much (forgo a small amount of interest that will be taxed). If the guarantee is needed and I am outside the electronic system, my money will increase in value by 10 times overnight. I like that potential upside with limited downside.

The performance of gold mining and silver mining stocks from 1929-1936 was an increase of around 600 %…

The context for gold mining stocks was different in the 1930s. In Which industry’s profitability grew as the Great Depression progressed?, Wilhelm Röpk was quoted

So long as there exists at least one country [the US] on a full gold standard, an essential condition of which is freedom to buy gold from or sell gold to the central institution at a fixed price, there is literally an unlimited demand for the commodity at that price. In other words, not only is a minimum price for the product of the industry guaranteed, but there is, besides, no limit to the amount the market will take.

The gold standard allows gold mining stocks to prosper during the Great Depression. Today, no country is in the gold standard.

My Super cash account should be covered by the government guarantee as the investment fund indicates for the cash component “all underlying investments are currently covered by the Government guarantee arrangements applicable to wholesale bank securities and large deposits.”

I advise others to check that their “Super – cash accounts” are covered. If the government does not back up its guarantees on cash deposits then I would imagine that the social unrest would bring down the government.

In an inflationary nightmare Gold and Silver will mutiply alot more than an asset like a house.

It may buy you many income producing houses if you trade it in at the right time.

Gold should be the basis of all portfolios.

My 2cents worth.

http://finance.yahoo.com/echarts?s=ABX#chart1:symbol=abx;range=my;indicator=split+volume;charttype=line;crosshair=cross;ohlcvalues=0;logscale=on;source=undefined

If history was to repeat barrick gold should increase a lot in price. And since gold is not fixed this time, gold should also increase a lot.

Another thing is that inflation tends to track the M3 over longer periods of time. You can have periods of productivity gains, like the 80-90 era, when this connection seems to be broken, and gold useless, but these productivity gains ends, and later, all the M3 printed in that era of productivity gains, goes straight into inflation again, like with oil the connection is around 1:1. The natural price level of oil now is around 90 dollars, before any peak oil effects are taken into account. Gold is currently holding up better than oil because it’s not an industrial commodity. As the era of productivity gains are over for a while, any money growth have a more direct connection to the CPI now, than during the era of the 80-90-s. Another difference is that I think US governments bonds have been in a bear market since 1998, and will be so, for a long long time, as they print, the only outcome is a trend of higher longer term interest rates. In era’s of higher longer term interest rates and inflation, people are much more eager to spread money to emerging economies, and people are more obsessed with growth, and getting return on the money. That further fuels inflation. If we was to head into deflation, that would definitely push emerging economies from an era of 1970-s stagflation, to disinflation. That would cause true decoupling. That argument have to validity, but for it to happen, people have to wait for them to have a chance to get their interest rates down as inflation fades, so that their consumers can respond to lower interest rates. Since the interest rates in these countries comes from such high levels, and there is so much room to grow credit, there is no reason why they cannot have a credit boom like we had in the 80-90s.