Mike Norman Economics

Excerpt from Monetary Policy Takes Center Stage: MMT, QE or Public Banks? Now I think this is interesting, Prof. Mary Mellor says that banks issue loans but not the interest the bank requires back, so new money needs to be always lent into existence so that previous borrowers can earn it to pay back the interest they owe.That sounds alarming to me, but Prof. Steve Keen says the velocity of money will pay the interest as it cycles many times through the banks and then back out again into...

The whole article is good with Varies Varafoukis suggesting public banks in Europe to fund the New Green Deal.This is an excerpt about MMT and its critics which I have put up for discussion. MMT advocates say the government does not need to collect taxes before it spends. It actually creates new money in the process of spending it; and there is plenty of room in the economy for public spending before demand outstrips supply, driving up prices. Critics, however, say this is not true. The...

Ann Coulter @AnnCoulter Ocasio-Cortez wants a 70-80% income tax on the rich. I agree! Start with the Koch Bros. -- and also make it WEALTH tax. Ann Coulter - Tax the rich tweet

Left to its own, free market capitalism trends to stagnate, says Yanis Varoufakis, unless there is a stimulus, he adds.The free marketeers believe there is a magic number for interest rates, which the free market will set, but in practice this never happens, as Varoufakis explains. Time for MMT.  A decade after the 2008 financial crisis, faith in markets' self-regulating abilities once again lies in tatters. There simply is no single real interest rate that would spur investors to funnel...

The mainstream economists are running scared, as more and more academics look into MMT and see that it is viable. If neoclassical and Austrian School economists shout loud enough together they are hoping it will go away, but it's a good working model ready to be tried, and then people will find out that they didn't understand economics, despite their prestigious awards and acclamation, and that they had wrecked our economy.MMT is built on the work of John Maynard Keynes and Hyman Minsky. A...

Fed will end balance sheet reduction in September. Could be the end of the bull market.

Are Trump supporters the most gullible people on Earth, or are they victims of the propaganda by billionaires like Rupert Murdoch, asks Thom Hartmann? When I look around the internet and see what conservatives hate the most, it's welfare.  Trump intends to cut over 200 $billion from welfare, but poor white people, most of whom voted for Trump, are the biggest beneficiaries of welfare.  [embedded content] Back before most of us were born, President Harry Truman called out the GOP...

I don't know if their film will be seriously edited, or not shown at all, but these two journalists, who work for a major TV company, found Venezuela to be completely different to how it is portrayed in the Western media. Venezuelans are not hungry and now grow a lot of their own food. And as it's tropical, there's plenty of fruit around, much of it for free just hanging off trees. They say one mistake Maduro made was to pay off Venezuela's different debt too early, in light of how the...

This article was tweeted by Stephanie Kelton and fits in well with my own theories with how MMT works, which I have printed here before.I would like to add, that money does not create wealth, work does. I can create wealth by growing potatoes in my back garden, or some fruit, or by making things in my shed, or just by offering my labour. But what if there is not enough money in society because people don't want to take out anymore loans, or the banks don't want to lend to poor people, or...

More depressing stuff about the evil thugs who rule this world, and it's all about money. Steve Keen, Michael Hudson, and many other fine people said it was best for the UK to leave the E.U., but according to this article, that's not such a good idea.The British ruling elite are split into two groups: the old industrialists who want easy access into Europe, and the military-industrial-financial-complex which wants closer ties with the U.S. and its war machine.Boris Johnson says, "f*ck...