Mike Norman Economics

Today we consider how asinine Australian’s monetary policy makers are now sounding. Yesterday, I reported the massive income redistribution that is going on at present as a consequence of central banks now hiking interest rates. This not only favours those with interest rate sensitive assets and punishes borrowers, but also necessitates, under current policy settings that central banks pay millions to trillions of cash to the banks that hold excess reserves. The excess reserves are the...

Going to gold as trust in the USD as a safe asset wanes. The status of a reserve currency is based on whether other countries choose to save in it. That willingness to hold the dollar appears to be decreasing.Asia TimesChina’s gold stockpiling is dollar warning signWilliam Pesek

2023 will be a HUGE year for stocks. Load the boat now, while others remain afraid. 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. https://www.pitbulleconomics.com/understanding-daily-treasury-statement-video-course/?s2-ssl=yes

Basically, the G7 lacks the power. The article explains the how and why.Not to mention that such a move undermines the "rules-based order" policy of free markets and free trade, further showing who actually makes the rules unilaterally.Frankly, it looks like desperation.Sputnik International (Russian state-sponsored media)Five Reasons Why G7's Price Cap on Russia's Oil is DoomedEkaterina Blinova

European industry is on an emergency footing thanks to high gas prices and new lavish subsidies for American rivals.(Disclosure: Politico is owned by Alex Springer, a German publisher.)PoliticoEU plans subsidy war chest as industry faces ‘existential’ threat from USJakob Hanke and Barbara Moens

The reality versus the hype. (Actually, the Chinese system doesn't sound as intrusive as the American credit reporting system, which it loosely resembles.)MIT Technology ReviewChina Announces New Social Credit LawZeyi Yangarchive page

Now that the US midterm election is over, markets and the financial press are returning to a more dovish outlook and concluding that major sources of inflationary pressure were transitory after all. But it may not last, because monetary policy appears to have been following politics more closely than its practitioners want to admit.…Project Syndicate (free registration may be required to read)Think Again About Persistent Inflation - and the Non-Partisan FedJames K. Galbraith | Lloyd M....

It’s Wednesday, and before we get to the music segment, I document some developments in the banking system which are not receiving much press at the moment. I refer to the fact that the rate hikes now being implemented by most central banks are not just allowing the commercial banks to widen spreads between deposit and lending rates which will generate significant windfall profits for the banks and their shareholders. The increasing interest rates are also delivering massive cash injections...

CME chief Terry Duffy told Sam Bankman Fried a fraud to his face before the FTX debacle. I traded in Chicago in the 1990s. Tough, savvy, smart. 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....

The contribution of the historical dimension to a theory, monetary or otherwise, is undoubtedly not sufficient in itself to demonstrate the correctness of this theory. But it does shed light on the underlying dynamics and the way in which they are articulated. It helps to identify the chains of causality that serve as a basis for the construction of a coherent body of theory, and it helps to eliminate arbitrariness in reasoning. It also helps to falsify certain ideas, such as the idea that...