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Mike Norman

Mike Norman

Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Articles by Mike Norman

Bill Mitchell — Dangerous anachronisms continue – and I am not talking about the British royalty

3 days ago

It’s Wednesday and as usual I just present some short snippets that have attracted my attention this week and other things that distract me from economics. Today, we don’t talk about the British royalty at all – the events this week were from another world really. But what is not from another world is the continual nonsense being spoken and written about this inflationary period and how central banks and treasuries have to tighten up to ‘beat it’. Talk about anachronism. And once we have discussed those things, I offer some soothing music to reduce the state of angst….Bill Mitchell – billy blogDangerous anachronisms continue – and I am not talking about the British royaltyBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at

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Talking Energy and Inflation with Westwood Capital’s Dan Alpert — Stephanie Kelton

4 days ago

Real resources and supply.Stephanie Kelton’s introduction and Dan Alpert’s analysis.The LensTalking Energy and Inflation with Westwood Capital’s Dan AlpertStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats’ chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

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Experts Explain How Germany’s Anti-Russia Sanctions Threaten India With Food Crisis — Rishikesh Kumar

4 days ago

It’s complicated. This is what happens when not thinking complicated issues through before taking action. This will just hasten the process of decolonization.Sputnik International (Russian state-sponsored media)Experts Explain How Germany’s Anti-Russia Sanctions Threaten India With Food CrisisRishikesh KumarSee also at SIIndia Facing Tough Decision Over Fate of World’s Largest Free Food ProgramGuterres: It’s ‘Essential’ to Remove Obstacles to Export of Russian FertilizersEU Wastes More Food Than It Imports, Report Says

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The Price of Economics — Peter Radford

4 days ago

Peter Radford takes down the "economic science profession."As an academic, I approach the issue somewhat differently. There is nothing inherently "wrong" about specialization and methodological choices. The problem arises begins with naming and extends to capture of an epistemological territory. Conventional "economics" has managed to capture an academic field based not on more successful explanation but rather as a result of acquiring the power to sideline competitors, some of whom have been more successful in explanation. This is done by enforcing particular methodological rules on the specious justification that they have proven "superior" and "that the debate is now over.""Let a hundred flowers bloom." If mathematicians want to pursue the study of economic modeling, why not? But to

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Deliberate. Coordinated. Global Recession. — Stephanie Kelton

5 days ago

In early August, I made the following observation. Reading the replies, I noticed that a handful of people thought I was claiming that a cabal of global elites was engaged in some backroom conspiracy to join in a collective effort to crush the proletariat. I wasn’t. What I was actually saying was that policymakers were (nearly) all leaning hard in the same direction at the same moment in time—tightening both fiscal and monetary policy—and that the predictable outcome would be a synchronized contraction….The LensDeliberate. Coordinated. Global Recession.Stephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats’ chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of

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HM Treasury sets the price, not The Market — NeilW

5 days ago

The Market is servant, not master because Sterling is a public monopoly and monopoly rules apply. Whether the government pays interest is entirely a policy choice. There is no reason at all for government to continue to issue Gilts or Treasury Bills, nor pay interest on them. Stopping interest payments will eliminate the interest income and forward pricing channels, causing inflation to decline faster. Moreover, it would make the implementation of a Central Bank Digital Currency that much easier. After all, there are no interest payments on physical cash. So why should there be any with digital cash?New WaylandHM Treasury sets the price, not The MarketNeilW

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Primer: Bank Treasury Operations — Brian Romanchuk

5 days ago

I have been looking at The Moorad Choudry Anthology: Past, Present and Future Principles of Banking and Finance (Amazon affiliate link, and as the title suggests, by Moorad Choudhry) as a source for my banking primer. Professor Choudhry teaches in the M.Sc. Finance at the University of Kent Business school, and previously worked in a bank treasury department. The book is impressive, clocking in at 1252 pages (not counting end matter). As an academic text, it is not cheap, but is a good source for getting a handle on banking.My primer is aimed more at the macroeconomic aspects of banking, and would be a lot shorter (and cheaper). However, my plan is to lean on the Anthology for more complex topics.In this article, I just want to highlight parts of Choudhry’s discussion of bank treasury

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Bill Mitchell — Central bank priorities are not the priorities of working people

6 days ago

I remember a conversation I had when I was picked up hitch hiking to Melbourne from where I was living down the coast. It was during the 1970s inflationary period, which had morphed into stagflation as a result of deliberate government policy to create unemployment and discipline the wage-price spiral. The driver was a manual worker and during a conversation about the state of the economy (I was studying economics at the time) he said “the government should care about employment because at least then everyone has a job even if prices are rising”. That conversation stuck with me because it summed up what research shows in more sophisticated ways – the costs of inflation are minimal when compared to the devastating costs of unemployment. At present, our policy makers are unwilling to

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The Odds of a Bad Outcome are Rising — Stephanie Kelton

6 days ago

Contra Larry Summers.The LensThe Odds of a Bad Outcome are RisingStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats’ chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

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Mike Norman Economics 2022-09-17 16:18:16

7 days ago

The Recent History of "at will" MASS DELUSION events   (Commentary posted by Roger Erickson.)What are Mass Delusion events?  They are simply the institutional momentum of freedback waves traveling through a communicating network, and they can appear in diverse forms. They are the sum of communicability, shared relevance, emotional appeal, and underlying conditions, e.g., stress & propensity to panic.  The phenomenon is not new.  Transiently attractive rumors are as old as human culture.However, the remarkable 20th Century resurgence of the use of Mass Delusion events as tools of Politics and Empire, can be significantly attributed to 3 little books that launched an industry dependent upon unprecedented breadth and speed of feedback methods, all of which, unfortunately, produced conditions

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‘Samarkand Spirit’ to be driven by ‘responsible powers’ Russia and China — Pepe Escobar

8 days ago

The Greater Eurasian Partnership was proposed by Putin in 2015 – and it’s getting sharper as the EAEU commission, led by Sergey Glazyev, actively designs a new financial system, based on gold and natural resources and counter-acting the Bretton Woods system. Once the new framework is ready to be tested, the key disseminator is likely to be the SCO.So here we see in play the full cohesion of goals – and the interaction mechanisms – deployed by the Greater Eurasia Partnership, BRI, EAEU, SCO, BRICS+ and the INSTC. It’s a titanic struggle to unite all these organizations and take into account the geoeconomic priorities of each member and associate partner, but that’s exactly what’s happening, at breakneck speed.In this connectivity feast, practical imperatives range from fighting local

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China is the world’s largest economy: Get over it — Dean Baker

8 days ago

It is common for politicians and pundit types to speculate on when or whether China’s economy will pass the US economy as the world’s largest. The latest episode to cross my path was a column by David Wallace in the New York Times.There is little reason for this sort of speculation. China is already the world’s largest economy, its economy is more than 20 percent larger than the US economy, according to the IMF. Furthermore, it is growing considerably more rapidly (assuming they don’t continue their zero COVID-19 policy forever), so it is projected to be more than a third larger than the US economy by the end of the decade….Of course, the story is different in terms of per capita wealth and income. The Chinese economy is larger than the US economy largely for the reason that China has

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Why Sergey Glazyev’s Memorial to the Legacy of Lyndon LaRouche Matters — Matthew Ehret

8 days ago

While some may wish to assert without evidence that [Sergey Glazyev] is a “follower of Modern Monetary Theory”, the facts from Glazyev’s actions, words and policy orientation attest to a very different reality.It was for this reason that Glazyev first began meeting Lyndon LaRouche directly during the latter’s many trips to Russia in the 1990s after the young economist had demonstrated his consistent principles by resigning from his post as Minister of Foreign and Economic Relations under Boris Yeltsin in 1993 when it became clear that the intention behind the reforms he was expected to oversee were designed to destroy his nation. In his 1999 book Genocide: Russia and the New World Order, Glazyev laid out the two pathways forward for Russia in the 21st century ….Yeah, I know, "Lyndon

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The Rate Hikes Will Continue Until Morale Improves — Stephanie Kelton

10 days ago

Rent inflation, not wage increases. But the Fed only has a shotgun to use.The LensThe Rate Hikes Will Continue Until Morale ImprovesStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats’ chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

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U.S. CPI: Ouch — Brian Romanchuk

10 days ago

The CPI report in the United States was a horror show for Team Transitory. Although there were other areas with jumpy prices (e.g., food prices), I think that the housing component (above) is the part I am most concerned about in the near run….Bond Economics U.S. CPI: OuchBrian Romanchuk

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Bill Mitchell – Inflation falling in the US and expectations are sharply in decline

10 days ago

It’s Wednesday and today we discuss the latest inflationary expectations data from the US, which tells me that my assessment that this episode will be a transitory phenomenon, diametric to the experience of the 1979s, was sound, despite the flack I have received over the last several months. The data is now showing consistent, cross-month declines in expected inflation and the latest CPI shows an easing of the general CPI pressure. AS the supply chains return to something like pre-pandemic capacities, then the easing will continue. It is too early to say that this period of elevated CPI rises is over but it sure looks like it and wages have barely moved. Once we get our heads around that I provide some information about an interesting ‘golf’ experiment and finish with some great keyboard

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Western Sanctions Are Creating New, East-Tilting Russia — Wang Wen

11 days ago

Report not only on Russia  oping with sanctions by turning east but also the blistering growth of the Far East and the consequent shifting of wealth eastward.Sputnik International (Russian state-sponsored media)Western Sanctions Are Creating New, East-Tilting RussiaWang Wen | professor and executive dean of Chongyang Institute for Financial Studies at Renmin University of ChinaOriginally at Global Times (Chinese state-sponsored media)Also at SIIndia to Seek ‘Loss and Damage’ Compensation From West for Climate Disasters at COP-27 – Report

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Russian Aviation Industry Corrects Yeltsin Yaw–Boeing, Airbus Ditched — John Helmer

11 days ago

Import substitution.This bears on world trade. The present geopolitical situation is affecting the international flow of goods, including materials, intermediate goods and finished goods.  The world economy is heavily influenced by the level and quality of international trade. Sanctions, of course, inhibit international trade and result in new supply chains and also import substitution. Both Russia and China have adopted policies of self-sufficiency. Being large-scale with plenty of knowledge, skill, experience, technology and industrial capability, this avenue is available to them.Naked CapitalismRussian Aviation Industry Corrects Yeltsin Yaw – Boeing, Airbus DitchedJohn Helmer at Dancing with Bears

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[UK] Treasury reasoning that is completely circular — Peter May

11 days ago

Rather to my surprise, John Glenn’s successor, Richard Fuller, has actually replied to my query on what were the “liquid assets” he originally claimed were ‘backing’ the physical cash issued in notes and coin! But circular reasoning, I’m afraid, seems to sum up Treasury thinking… The copy of the letter is below: Progressive PulseTreasury reasoning that is completely circular….Peter May

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Bill Mitchell — MMTed edX MOOC – Modern Monetary Theory: Economics for the 21st Century – starts September 14, 2022

12 days ago

The MMTed edX MOOC – Modern Monetary Theory: Economics for the 21st Century – starts tomorrow and enrolments are open. The free, 4-week course will offer a range of learning modes – videos, written materials, interviews with many MMT people, and more. It is designed for the beginner and equips the participant with a broad array of information designed to develop economic literacy….Bill Mitchell – billy blogMMTed edX MOOC – Modern Monetary Theory: Economics for the 21st Century – starts September 14, 2022Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

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Inflation Hurts Everyone, But So Does Unemployment — Stephanie Kelton

12 days ago

Last week, I joined David Westin on Bloomberg TV to talk about what the Federal Reserve and the European Central Bank (ECB) are doing to try to tame inflation. If you’ve been reading this newsletter for a while, then you know that I don’t subscribe to the conventional view that a series of aggressive and indiscriminate rate hikes is the right way to respond to our current bout of high inflation. Indeed, I’ve called it Bad Medicine. It comes with some nasty side effects, and there’s no guarantee it will cure the disease.…Phillips curve tradeoff that uses unemployment to target inflation. The LensInflation Hurts Everyone, But So Does UnemploymentStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats’ chief economist on the staff of the U.S.

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Bill Mitchell — IMF reform proposals for the Eurozone are just weak band aids that cannot fix the dysfunctional mess

12 days ago

The Eurozone is currently in a period of ‘temporary’ hiatus – by which I mean that to deal with the obvious system-ending implications of the pandemic (increasing fiscal deficits etc) the European Commission invoked the special clauses to suspend the application of the fiscal rules outlined in the Stability and Growth Pact (SGP) and related Excessive Deficit Mechanism procedures and the European Central Bank introduced an even larger bond-buying program to ensure the resulting deficits would be funded without bond yields rising. Result: fiscal deficits rose well beyond the SGP limit of 3 per cent in 2020 and have remained at elevated levels relative to the rules in 2021. The overall Eurozone deficit is 4.7 per cent of GDP and 11 of the 19 Member States remain in ‘violation’ of the

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A short history of inflation in modern times — Ben Norton interviews Michael Hudson

13 days ago

Economist Michael Hudson joins Multipolarista host Ben Norton to discuss partial student debt relief in the US, inflation and the Fed, disaster capitalism in Ukraine, and China’s challenge to the petrodollar.Video and transcript.Michael Hudson — On Finance, Real Estate And The Powers Of NeoliberalismA short history of inflation in modern timesBen Norton interviews Michael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and Guest Professor at Peking University

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Ukraine partying

14 days ago

This is gotta be fake news.. these young people REALLY would rather be going to the Arctic and freezing their asses off….#Ukraine war zone. My heart bleeds for their suffering in Kiev. pic.twitter.com/9kwPNiXLoy— It’s a hoax folks🇮🇪 (@valeriekeane53) September 4, 2022 😂😂😂😂😂

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US household wealth fell by a record $6.1 trillion in Q2

14 days ago

Initial effect of the increase in the risk free interest rate component of Fed monetary policy to fight Art Degree figure of speech “inflation!” has wiped out over $6T of wealth in 90 days…   Accordingly most people are bearish NOW…The hit to Household Net Worth over the last 2 quarters is beyond even that of the GFC. Reverse Wealth Effect about to work with a vengeance. #Recession #Crisis pic.twitter.com/0lFzY3kVcy— steph pomboy (@spomboy) September 9, 2022

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Links — 8 Sep 2022

16 days ago

India PunchlineTimely assertion of India’s strategic autonomyMK. Bhadrakumar | retired diplomat with the Indian Foreign Service and former ambassador.The Vineyard of the SakerGermany’s energy suicide: an autopsyPepe EscobarThe CradleAsia’s future takes shape in Vladivostok, the Russian PacificPepe EscobarSputnik International (Russian state-sponsored media)China Opens Record-Breaking Hypersonic Wind Tunnel Able to Reproduce Mach 33 SpeedsAndrew Batson’s BlobWhat will self-reliance mean for China?Andrew BatsonCaitlinJohnstone.comOur Entire Civilization Is Fake And StupidCaitlin Johnstone

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Bill Mitchell — Deep adaptation, degrowth and MMT – Part 2

16 days ago

This is Part 2 of a series on Deep Adaptation and MMT that I am writing. The first part – Deep Adaptation – Part 1 (August 22, 2022) – introduced the concept. I have recently written about the coming together of a number of crises which I consider to be all linked and part of the end of normal business as we have known it. See – The global poly crisis is the culmination of the absurdity of neoliberalism (July 18, 2022). Thinking about the social aspects of that conjunction of crises, we understand that advancing material prosperity is still a goal that we should seek to achieve for millions of the globe’s citizens, who live in abject poverty with little food and housing security. But then, when we consider the ecological dimension we see immediately how the social goals have to be solved

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