Mike Norman Economics

The new BRICS reserve currency can act in concert with the stronger role performed by BRICS national currencies to take on a greater share of the total pie of currency transactions in the world economy, writes Valdai Club Programme Director Yaroslav Lissovolik. The discussion centers around a basket of currencies comparable to the IMF SDR rather than a basket of commodities, as Sergey Glazyev proposes. Presently, the primary workaround to use of the USD is bilateral trade in national...

Sky-high oil tanker rates are weighing on physical crude trade. On Monday, the earnings on the benchmark key crude oil trading route hit $100,000 per day.Falling premiums on spot prices for various crudes, however, could offset some of the high shipping costs, traders told Bloomberg.OilpriceOil Tanker Rates Soar To Astronomical LevelsTsvetana Paraskova

The German chancellor says the continent’s current economic woes are down to growth in Asia, rather than to the Ukraine conflict...Interesting article.RT — Question More (Russian state-sponsored media)Scholz names reason behind European economy downturnSee alsoIn Macron's view, China must be subordinated. And so must the US. Interesting take.While Macron doesn't say this, it's obvious that the entire world cannot be raised to Western living standards without exceeding the limitations of...

One of the topics that comes up whenever government bond curves re-price is the relationship between the yield curve and bank net interest margins (NIM). This then morphs into a second question: does a yield curve inversion cause a recession by the (alleged) effect of the yield curve on bank interest margins, reducing the willingness of banks to lend?This article will look at the first question: what is the relationship between the yield curve and bank net interest margins? The second...

The November fiscal spike has ended. What can we expect now? 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

America’s electric grid is in dire need of a makeover.While the Inflation Reduction Act has promised a lot of money into renewable energy and electric vehicle infrastructure projects, more focus needs to be placed on America’s ailing grid.Without much-needed upgrades to the grid, both the renewable and EV revolution could face major challenges.Failure of systems awareness and inability to deal with adaptive complexity? OilpriceAmerica's Electric Grid Can't Support The EV RevolutionIrina...

NATO members “must be prepared to support Ukraine for the long haul,” Stoltenberg said, urging Stoltenberg acknowledged that this assistance “comes at a price” for NATO members. “In our countries, many face cost of living crisis. Energy and food bills are rising. These are tough times for many,” he pointed out.However, the NATO chief argued that Western countries will have to pay “a much harsher price” if Russia is allowed to achieve victory in Ukraine, as it would signal to other...

First, the Bank of England seems to have abandoned credibility. Not to be outdone, the fiscal policy makers in government have now joined in the absurdity of mainstream policy thinking by reimposing austerity at the same time as the economy heads into recession. Milton Friedman and his gang used to claim the problem of fiscal policy was that it was practiced in a ‘pro-cyclical’ manner, by which they meant that because of time lags involved in implementation, by the time a stimulus to deal...

Chinese President Xi Jinping said Saturday that free and open trade and investment are the purposes and principles of the Asia-Pacific Economic Cooperation (APEC) and also the pillar for the realization of the Putrajaya Vision 2040.…Ironic that a nominally communist country is calling for free trade, where as the so-called liberal world is using "other means" to control trade to its advantage and expressly to disadvantage competitors. ECNS (Chinese official English news service)Xi calls for...

Euthanizing the poor is just capitalism finally being honest about itself. After all these years of falsely pretending to have real solutions to the problems it creates, it finally presents a solution entirely in alignment with its values that actually works.Capitalism’s answer to “What about the poor?” has always been “They should work harder,” and its answer to “What about those who can’t work?” has always been “They should die quickly.” But until now it’s always been spoken wordlessly in...