Mike Norman Economics

Well, things are getting interesting in the US. The Federal Reserve started hiking interest rates in April 2022 and its decisions are underpinned by an theoretical framework that suggests the unemployment rate is below what it thinks is the natural rate (the rate where inflation is stable). So the rate hikes are meant to slow spending and increase the unemployment rate and cause price setters to stop accelerating prices up. Except the data isn’t obeying the theory and inflation is falling...

MNE dispatched its roving reporter to the Atlantic coast today to cover the shoot down of the China spy balloon here is the footage:Our reporter on the scene heard 2 explosions… This may have been an initial miss:Then this might have been the hit:1 points to the China spy balloon and might be the location of the hit … 2 might be the area of an initial miss… and 3 is the interceptor aircraft exiting the space to the south…MNE can report we last saw it deflated and falling slowly towards the...

Pandemic stimulus not the cause. Fed runs its accustomed playbook to screw labor and reward capital based on junk economics.Naked CapitalismJames Galbraith: The Quasi-Inflation of 2021-2022 – A Case of Bad Analysis and Worse ResponseJames K. Galbraith | Lloyd M. Bentsen Jr. Chair in Government/Business Relations and Professor of Government at the Lyndon B. Johnson School of Public Affairs, The University of Texas at AustinOriginally at INET

Same old, same old. The push for repeal began with the passage of the New Deal and the push won't end until it is repealed or effectively neutered by privatization. The push for austerity of which this is just a part risks another depression, and some would argue that it guarantees it.The LensDanger Ahead: Mike Pence Would Pick Up Where Paul Ryan Left OffStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of...

Monetarist absolutely losing their shi*t because the economy is creating jobs. Watch "Meet Kevin" and clueless imbecile Patrick Bet David. Please watch entire video. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.mmteconomics.com/ Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ Understanding the Daily Treasury Statement video course....

What's next. Brad DeLong makes some observations and poses some questions. He suggests that the answers the future will provide are dialectical, that is, an attempt to deal with the various facets these questions suggest. The outcomes, yet to be determined, will be the results of political struggles.It is a usual piece to provoke thinking but it is too short and summary to include all the relevant factors. After all, the world system is a complex adaptive system with many gears and these...

Over the past century, the theory that rational behavior involves maximization of utility has become central to Economic theory. In economics, this theory is established on axiomatic grounds, and supported by intuitions and speculations. However, When psychologists examined this theory of behavior by carrying out actual experiments on human behavior, they found that the theory leads to wrong predictions in many examples. By now, an overwhelming amount of evidence has emerged to show the...

Robert Hockett proposes essentially the same solution that I have recently — ignore the debt ceiling it is invalid legally.Hockett: The budget is its own debt ceiling.…We don't need gimmick vs. gimmick when we have budget lawWOLF: What about the other ideas to get past the debt ceiling? Trillion dollar coins and such?HOCKETT: The wonderful thing from my point of view here is we don't need any of those gimmicks. We just have a little garden-variety budget law on our side, and so we don't...

Nice troll of the dumb ZH monetarists… Revolver people:It is the empirical fact of apparently lucrative borrowing in one’s own currency over the last thirty years that underlies the Biden administration’s confident experiments in fiscal irresponsibility. If you talk to intelligent economists who endorse “Modern Monetary Theory,” you often find that it boils down to the above fact and does not contribute a single new insight that would justify the Biden administration’s recent fiscal choices....

Like Gordon Gekko said to Bud Fox in the movie, "Wall Street." (1986). You'd be surprised how many people ignore this. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.mmteconomics.com/ Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ Understanding the Daily Treasury Statement video course....