Democrat rate policy still has US overnight risk free IOR rate at 4.9% so what is so bad about a 10yr risk free UST rate of 4.2%?  It’s still significantly inverted over time …  usual Art degree moron suspects going apoplectic meanwhile a significantly inverted yield curve… hard to understand how these peoples brains work… 🤔

Pepe Escobar summarizes the state of play at the outset of the BRICS conference as it begans in Kazan, the capital of Tatarstan, Russian Federation. The heads of the central banks have already met in Moscow in preparation for discussing initial steps in an overhaul of the post WWII Bretton Woods monetary system and associated institutions established by and controlled by the West, the US in particular. Expectations had begun to exceed reality and now they are more modest but still positive.Sputnik InternationalPepe Escobar: Date With Destiny – BRICS Offers Hope in a Time of War

The BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar. Russia’s finance ministry and central bank released a report detailing plans to transform the international monetary and financial system.Geopolitical EconomyBRICS plans ‘multi-currency system’ to challenge US dollar dominance: Understanding Russia’s proposalBen Norton

IntroductionIn the first part of this year’s BRICS series, we described the geopolitical environment in which BRICS is currently operating and trying to evolve. This environment has changed for the worse since the last BRICS summit in South Africa last August.The consequence is that BRICS cannot develop freely, because on the one hand, the decisions – especially those of the USA – regarding the wars in Ukraine and the Middle East, the situation in the financial markets and finally the elections in the USA will have serious consequences for the whole world. On the other hand, the decisions of the BRICS regarding the admission of new members and the introduction of a currency (unlikely) or a payment and settlement system (likely) will also have a major impact on the overall geopolitical

This is what will be presented at the upcoming BRICS + meeting. Download report at link below.Description on X here. (It’s nothing like the cheerleaders have been projecting.)BRICS Chairmanship ResearchImprovement Of The International Monetary And Financial SystemThe Ministry Of Finance Of The Russian Federation, Bank of Russia, Yakov and Partners

In a New York Times editorial, David Leonhardt recounts Aesop’s apocryphal story about the boy and the wolf, warning that while deficit hawks have so far been wrong, the growing government debt will eventually bite. He reports the economic plans of both presidential candidates would add to the debt that will soon exceed GDP and grow to 130 percent of annual output under a President Harris, or 140 percent with a Trump presidency.The story of the boy and the wolf was a fable, although it was within the realm of possibility. The fable of the debt wolf is not. While there are real world wolves—Leonhardt mentions climate catastrophe and autocratic leaders, and the authors would add rising inequality and the concentration of economic and political power in the hands of billionaires.Levy

Today (October 18, 2024), MMTed releases Episode 7 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory (MMT) and circulate it to those who you think will benefit.…William Mitchell — Modern Monetary TheoryEpisode 7 (S2) of the Smith Family Manga is now available – A revealing Zoom sessionBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

MMT to the rescue (from neoliberalism). This applies similarly to other countries running under neoliberalism, which can be broadly characterized as policy formulation based on state capture by elites in a plutocracy masquerading as a democracy. Social Justice AustraliaHow Australian Monetary System Favours the PowerfulDenis Hay

Great breakdown of a great song (by The Doors) by these 2 Millennial black bros… never understood the song as a metaphor for the city of Los Angeles but yeah I get it now… makes it even better…[embedded content]

Short article on Stephanie Kelton’s The Deficit Myth.Daily KosThe Deficit, the National Debt, and why we don’t have to worry about them.John Rudden

Today (October 3, 2024), MMTed releases Episode 6 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory (MMT) and circulate it to those who you think will benefit. Episode 6 was delayed by two weeks…William Mitchell — Modern Monetary TheoryEpisode 6 of the Smith Family Manga (Season 2) is now availableBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

As we have been writing for over a year in this newsletter, the UK Government, as the issuer of the UK pound, can never run out of money. They can afford whatever is priced in pounds. There is never a problem finding the money. This leads to a natural and painful conclusion: Continuing austerity policies is a political choice….The National (Scotland)Modern Monetary Theory film proves finding the cash isn’t the problemWilliam Thomson, Scotonomics founder

Apparently many influential Chinese economists are old-style Keynesians. There is no indication that they understand the basic principle of MMT —  a sovereign currency issuer that doesn’t create financial obligation in currency it does not issue has a monopoly on its currency. This is especially important considering that China faces deflation rather than inflation.It’s up to the Finance Ministry now. Wikipedia:The Ministry of Finance of the People’s Republic of China (Chinese: 中华人民共和国财政部; pinyin: Zhōnghuá Rénmín Gònghéguó Cáizhèngbù) is the constituent department of the State Council of the People’s Republic of China which administers macroeconomic policies and the annual budget. It also handles fiscal policy, economic regulations and government expenditure for the state.The ministry

Not MMT or economics as such but it is interesting in that Bill is an MMT founder so his stance on economic sociology is relevant. There was an interesting article in the UK Guardian the other day September 26, 2024) – Take it from me (and Keir Starmer) – you should never pretend to be more working class than you are. I don’t usually agree with the journalist but this article made me reflect on a lot of things.… Aside:The scrutiny arises because many of these “Labour people” appear to have accumulated wealth (real estate etc), have come from well-paid jobs and network with the elites in society.For that they are referred to, in a pejorative way, as ‘champagne socialists’.In the US, they (affected Democrats) are called "limousine liberals" and "latté liberals." A lot of the formerly

The discovery of a monetary approach, which, in this case, not only relates to a field that I was not familiar with, but also constitutes a total challenge to my own knowledge of public finance management, which I have practiced throughout my career, is not something trivial. So I decided to tell my own story.Interesting personal story.MMT FranceHow I came to MMTRobert CauneauThe article is available in French here.

Commies dilute their productive capital with unproductive commie bullshit = 0…Here is a wild chart. The total return on Chinese stocks since 1993 is negative. In contrast, India is a 13-bagger. pic.twitter.com/SPvczZxkld— Jeff Weniger (@JeffWeniger) September 20, 2024

For some years now (since the pandemic), I have been receiving E-mails from those interested in the Eurozone telling me that the analysis I presented in my 2015 book – Eurozone Dystopia: Groupthink and Denial on a Grand Scale (published May 2015) – was redundant because the European Commission and the ECB had embraced and was committed to Modern Monetary Theory (MMT) so there was no longer a basis for a critique along the lines I presented. I keep seeing that claim repeated and apparently it is being championed by MMT economists. While there are some MMTers who seem to think the original architecture of the Economic and Monetary Union has been ‘changed’ in such a way that the original constraints on Member States no longer apply, I think they have missed the point. They point to the fact

Xu Gao, the Chief Economist and Assistant President of Bank of China International Co. Ltd., and an adjunct professor of the National School of Development (NSD) at Peking University, has been featured on The East is Read several times.On August 19, 2024, Xu published a new essay on his personal WeChat blog 徐高经济观察 Xu Gao Economic Observation. This long essay, essentially making a case for Beijing to adopt stimulus measures, will be rolled out in three parts.Amid cautious signals from the Chinese government and the widespread belief in saving policy "ammunition," Xu Gao calls for a shift to macroeconomic thinking. He contends the government shouldn’t be tethered to the belief that money spent is money lost, as a company might. The government revenue isn’t fixed or exhaustible but

Looks like Trump going to start a crypto exchange and a USD stable coin… 🤔.@WorldLibertyFi is helmed by @realdonaldtrump’s sons, @EricTrump and @DonaldJTrumpJr and the 18-year-old Barron Trump is the project’s "DeFi visionary.” https://t.co/PSKhQWyQKu— CoinDesk (@CoinDesk) September 13, 2024

MMT without naming it.Xu Gao, the Chief Economist and Assistant President of Bank of China International Co. Ltd., and an adjunct professor of the National School of Development (NSD) at Peking University, has been featured on The East is Read several times.On August 19, 2024, Xu published a new essay on his personal WeChat blog 徐高经济观察 Xu Gao Economic Observation. This long essay, essentially making a case for Beijing to adopt stimulus measures, will be rolled out in three parts.Amid cautious signals from the Chinese government and the widespread belief in saving policy "ammunition," Xu Gao calls for a shift to macroeconomic thinking. He contends the government shouldn’t be tethered to the belief that money spent is money lost, as a company might. The government revenue isn’t fixed or

Some of the nity-gritty involving payments systems that underlies some institutional arrangement needed to understand MMT’s analysis.Bond EconomicsWholesale Payments Systems and Bank ReservesBrian Romanchuk

Yves Smith’s introductionYves here. It is frustrating to see a normally solid YouTuber almost go off the rails by getting outside his area of expertise, geopolitics, and fall for libertarian scaremongering. We’ve commented before on the tendency of certain schools of commentary to fall into belief clusters, so anti-globalists are anti-dollar hegemony (and often crypto fans) to the degree that they have not bothered understanding how a currency issuer like the US operates. A currency issuer can never suffer an involuntary bankruptcy. They can always create more currency. What they can do is generate too much demand compared to the real resources of their economy, as in inflation.In the discussion below, Micael Hudson has spend [spends] a significant portion of the interview debunking US

I am travelling all day tomorrow so I am bringing forward the normal blog post to today. I am pleased to announce that from today the MMT MOOC which we ran through the University of Newcastle’s edX facility over the last few years is now available through MMTed on an on-going basis. Read on to get the full details and access. William Mitchell — Modern Monetary TheoryModern Monetary Theory: Economics for the 21st Century – MOOC – now available via MMTed.orgBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Trump promising a return to 3% mortgages if he can get back in…He’ll have to tell his Central Bank to lower the policy rate down to at least 2% to hope to get his 30-yr fixed back to 3%…Donald Trump says his plans to slash regulations will get mortgage rates ‘back down’ to 3%, per FORTUNE— unusual_whales (@unusual_whales) September 9, 2024

Today (September 6, 2024), MMTed releases Episode 5 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory (MMT) and circulate it to those who you think will benefit …William Mitchell — Modern Monetary TheoryEpisode 5 of the Smith Family Manga (Season 2) is now available – the Finance Report hots upBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Some concern by Monetarists out there that current short term risk free rate of interest compared to the average of a past period of the short term risk free interest rate is a cause for serious concern wrt equity prices…Think of financial asset prices as a function of the equation P = (A-L)/A where A and L are Depository system Assets and Liabilities…At point 1 the fiscal surpluses were being saved in the TTL accounts at Depositories increasing system L by $100Bs … at point 2 the Fed increased Depository system A by hundreds of billions in September 2008, causing credit provision to cease and the GFC …. and at point 3 they again did the same thing as 2 establishing over $1 trillion of A in March 2020 causing the credit function to again cease until this regulatory function was suspended

A government cannot run continuous fiscal deficits! Yes it can. How? You need to understand what a deficit is and how it arises to answer that. But isn’t a fiscal surplus the norm that governments should aspire to? Why frame the question that way? Why not inquire into and understand that it is all about context? What do you mean, context? The situation is obvious, if it runs deficits it has to fund itself with debt, and that becomes dangerous, doesn’t it? It doesn’t ‘fund’ itself with debt and to think that means you don’t understand elemental characteristics of the currency that the governments issues as a monopoly. These claims about continuous deficits and debt financing are made regularly at various levels in society – at the family dinner table, during elections, in the media, and

Today (August 23, 2024), MMTed releases Episode 4 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory (MMT) and circulate it to those who you think will benefit …William Mitchell — Modern Monetary TheoryEpisode 4 of the Smith Family Manga (S2) is now availableBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia

Not MMT but relevant historically. How the world got here ((to dollar hegemony), as well as to monetarism, the accounting identity that is, as the basis of macro.  Adam Tooze is a historian rather than an economist, so he is able to shine a different light on the subject.ChartbookChartbook 310 The shock of the new: Dollar dominance and modern monetary macro in the 1920s. Adam Tooze | Shelby Cullom Davis chair of History at Columbia University and serves as Director of the European Institute

Something happened after the 2022 Biden unprecedented rate increases to really crush (-32%) the EPS of the NDX100… 🤔With the implication that this one time discount after the unprecedented Biden rate increases in 2022 might be reversed if those said rate increases were to be reversed…