I read an interesting report this morning, which resonated with some other work I had been looking into earlier in the week. The Australian Council of Social Services (ACOSS) released a report yesterday (September 27, 2023) – Inequality in Australia 2023: Overview – which shows that “The gap between those with the most and those with the least has blown out over the past two decades, with the average wealth of the highest 20% growing at four times the rate of the lowest”. It is one of the...
Read More »War of Economic Corridors: the India-Mideast-Europe ploy — Pepe Escobar
The India-Middle East-Europe transportation corridor may be the talk of the town, but it will likely go the way of the last three Asia-to-Europe connectivity projects touted by the west - to the dustbin. Here's why.…The CradleWar of Economic Corridors: the India-Mideast-Europe ployPepe Escobar
Read More »Challenges to the strong golden rule: MMT and bond market paranoia — Simon Wren-Lewis
SWL is still caught in the monetarist fallacy. MMT has two arguments against the golden rule, which I will call reasonable and unreasonable. The unreasonable argument is that interest rate increases do not reduce aggregate demand and inflation, and therefore fiscal policy has to play the macro stabilisation role at all times. It is an unreasonable claim because it contradicts the large amount of evidence that higher interest rates do reduce aggregate demand and inflation, evidence that you...
Read More »Trump is Fighting an American Class War – and Winning — Joel Kotkin
The most important political event this week will not be the upcoming GOP debate but Donald Trump’s expected visit with striking UAW workers as the walkout expands to other states. In that one appearance, Trump demonstrates one of the most critical parts of political change, the emergence of the populist right.…Once hostile to unions, Republicans like Florida’s Senator Marco Rubio, Ohio’s JD Vance and Missouri’s Josh Hawley have all pledged support to the strikers. Union-affiliated...
Read More »Remembering Jim Crotty — JW Mason
Perhaps the most distinctive aspect of Jim’s pedagogy and scholarship, almost alone among economists we have known, was his ability to synthesise these two thinkers in ways that gave equal weight to both, that placed them in conversation rather than in tension. Crotty’s Marx anticipates Minsky, while his Keynes is a political radical – a socialist – in ways that few others have recognized.Perhaps his most profound contribution to both traditions was the brilliant 1985 article “The Centrality...
Read More »At Least It’s Not As Bad As 1994 — Brian Romanchuk
The current Treasury bear market has been impressive, and unfortunately for the bond bulls, there is no valuation reason for it to stop. For example, the 5-year Treasury is still trading well below the overnight rate. If we look back to the 1994 bond bear market, the 5-year traded about 250 basis points above cash — versus about 100 basis points below now.The explanation for this disparity can be pinned on the Fed reaction function....Bond EconomicsAt Least It's Not As Bad As 1994Brian...
Read More »Trump up 10% over Brandon
If this thing holds Trumps going to immediately slash rates in half on day 1 in January 2025… lock it…Meanwhile all the Art degree morons are all going around saying “ the Fed is independent! … the Fed is independent!…. the Fed is independent!”
Read More »It will end badly if we rely on the speculators and gamblers for a climate change solution — Bill Mitchell
I am now in a very hot and humid Kyoto having left Australia yesterday in weather that was in some places 20 or more degrees Celsius above the norm for early Spring. The heat here and back home at this time of year is rather scary given what it portends. I also do not have much time today given I have been contending with various ‘moving in’ requirements. But I read an article on the plane last night which I think marks a divide between what ‘green’ progressives think and what I think is...
Read More »MMT Money Story – Print and Shred Edition — NeilW
Print and Shred is how the system works. All modern monetary systems work this way, no matter how much they try and hide the fact.The MMT money story explains where the ‘why not print more money’ idea falls over. The government only prints more money to buy more stuff..…New WaylandMMT Money Story - Print and Shred EditionNeilW
Read More »Trump bemoans high interest rates and indicates he might pressure Fed to lower
CNBC here…Again politics.. You knew this was coming.. can’t wait to now watch all the political biased leftist MMT people flip and join with the monetarist morons and start to advocate for higher interest rates in response.. wait for it…“Interest rates are very high. They’re too high. People can’t buy homes. They can’t do anything. I mean, they can’t borrow money,” Trump told MTP host Kristen WelkerUsing the platform formerly known as Twitter, Trump often berated Fed officials, once calling...
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