Mike Norman Economics

China did not have a credit rating system previously and the quickly expanding economy along with ecommerce required one, since credit is an essentially aspect of a modern monetary production economy, which China adopted during the era of Deng Xiaoping in introducing a market-based economy. Apparently it is a popular in spite of receiving a lot of bad press in the West as being controlling. Well, it turns out that the Chinese are fans of good order and tehy view the social credit system as...

… as Neil Schirmer in The Alchemists (especially Chap. 11) documented, the crucial move that halted the collapse of the euro and the threat of a fullout global collapse was a set of swaps the Fed pulled off that led to it taking about $600 billion of Eurojunk from the distressed European banks through the ECB onto the Fed balance sheet. These troubled assets were gradually and very quietly rolled off the Fed balance sheet over the next six months to be replaced by mortgage backed...

The media has been giving a lot of attention in the last week to the 10-year anniversary of the Lehman Brothers crash which occurred on September 15, 2008 and marked the realisation, after months of denial, that there was a financial crisis underway. Lots of articles have been published recently about what we have learned from this historical episode. I thought that the Rolling Stone article by Matt Taibbi (September 13, 2018) – Ten Years After the Crash, We’ve Learned Nothing – pretty much...

There. Someone finally said it.Grasping Reality Caitlin Rosenthal : How Slavery Inspired Modern Business Management Brad DeLong | Professor of Economics, UCAL BerkeleySee also from BDL Economist : Why is macroeconomics so hard to teach?

Summary The US budget deficit is $214 billion in August 2018; this is a net add of income to the private sector and a bumper month. The good news is that dollars are being added to the economy by the Federal government, allowing the private sector to post a $214 billion surplus. Further, net inflows are expected for the rest of the year from the Federal government and private credit growth. Private credit growth is a big surprise, growing strongly despite Fed rate rises. Seeking...

Not MMT, but you may find this of interest. In the context of the radical Macroeconomics Course I am teaching, I was very unhappy with the material available which tries to explain what Keynes is saying. In attempting to explain it better, I constructed an extremely simple model of a primitive agricultural economy. This model has a lot of pedagogical value in that it can demonstrate many complex phenomenon in very simple terms. In particular, Keynesian, Marxists, Classical and...

They were clever people and they thought they were doing some good, but I wonder how much Julian Assange and his associates regret ever getting involved in all this? It's sad. Evil is so powerful.BODØ, NORWAY — The belongings of Arjen Kamphuis, a Dutch cybersecurity expert closely associated with the transparency organization WikiLeaks and its founder Julian Assange, have been foundin Norway, sparking fears that Kamphuis was the victim of a criminal...

Not all "automatic stabilisers" in the economy are due to government policy; there are patterns of private sector behaviour that tend to act in a counter-cyclical fashion. The role of the external sector is an important stabiliser (at least most of the time). This article is a basic primer on the subject.... Bond Economics Exports And The CycleBrian Romanchuk

I'm putting this out again because I think it is timely, and many people new to this site might have not seen it. [embedded content]

In a perfect world we would have a democratic government run by the people for the people, but what if understanding how to run the economy is so complicated that the bankers, who call themselves technocrats, say leave it to us, we will work it all out for you, but instead of working out for us, they rig it for the benefit of the banking class instead?It's the same with medicine; how many people in government are doctors, which means politicians have to rely on doctors for advice, but what...