Mike Norman Economics

Report on happenings in 2024 with some links. The Gower Initiative for Modern Money StudiesThe Gower Intitiative for Modern Money Studies newsletter – January 2025

Trump plan to reduce “inflation!”…. 1.  Get energy production costs down (ie euthanize the “climate!” nutters) … 2. Reduce the policy interest rate (ie order the Fed to reduce FFR/IOR)…Nooooooooooobody right now thinking he can do any of this …[embedded content]

This is a good sign the Fed may be generally acquiescing to Trump admin policies….??Fed Announces Withdrawal from Global Climate Coalition. pic.twitter.com/xjSgOFPRwi— Update NEWS (@UpdateNews724) January 17, 2025

Today (January 17, 2025), MMTed releases Episode 10 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 10 (S2) of the Smith Family Manga is now available – Coal Port Blockade but the progressives want to tax the richBill Mitchell | Professor in Economics and Director of the Centre...

Free market fairy nowhere in sight??

STEM Tech bros figuring out a way to safely bypass the current Art degree administered inefficient and sometimes treacherous banking system…?CHAMATH: "SpaceX uses Stablecoins. They collect payments from Starlink customers and when they aggregate them in long-tail countries, they don't want to take the FX risk or deal with sending wires, so they'll swap into stablecoins, send it to the US, and then swap back to USD." pic.twitter.com/eHxGCW919y— Autism Capital ? (@AutismCapital) December 21,...

Have to watch to see if banking lobby again approaches a now new GOP government with this regulatory modification request… last time in 2021 nutty Pocahontas led Dems wouldn’t agree with it so we’ve remained susceptible to  the financial asset volatility Art degree monetarists can cause when they “inject some pumped in money!” in their characterizing deranged way they think Accounting abstractions are REAL…I think UST should be in the SLR computation, although there might be some weighting...

Good point by Setzer … if they stick Trump with the “debt ceiling!” he could end up going after all these foreign USD savings to fund his agenda…I see that President elect Trump's eye has turned to the trade deficit with Europe -- So a reminder that the single most important thing the US could do to bring down the deficit with the EU is to reform the US corporate tax code to end the pro pharma offshoring provisions 1/ pic.twitter.com/ITaXmbwsQJ— Brad Setser (@Brad_Setser) December 20, 2024...

Trump is never going to stand for this and will go to war with the Democrat Fed monetarist morons… The bond market is now pricing in just one 25 bps rate cut by the Fed in all of 2025. Back in September six 25 bps rate cuts were expected.https://t.co/l5IYmkf6Ih pic.twitter.com/syX4RcqQaP— Charlie Bilello (@charliebilello) December 19, 2024

In MMT terms, imports are a real gain and exports are real loss, where "real" means "stuff" in the sense of resources used in production including and the labor that gets embedded. TThe importing country is getting commodities that the members of society in the exporting country are not able to enjoy in spite of having produced them, while the members of society of the importing country are enjoying those commodities instead of the actual producers. So, from a real point of view rather than...