Mike Norman Economics

How did conventional economics survive the crisis? Handwaving.Criticism of Paul Krugman and New Keynesian economics, which is based on "rational behavior and market equilibrium as a baseline" (Krugman).Skidelsky concludes, "Macroeconomics still needs to come up with a big new idea."  I would rephrase that as "a new big idea." Theories are based on a "big idea" that constitutes the architecture of the framework. Rationality and equilibrium isn't it.Project SyndicateHow [Conventional]...

Useful commentary and links. real economicsThe decline and fall of neoliberalism in the Democratic PartyTony Wikrent

Dean Baker explains how international capital flow (capital flight and repatriation) is just a matter of switching account balances. There is no "cross-border" transfer of funds in "bringing back" dollars earned abroad. This is what bringing money back to the United States means. Under the old tax law companies often attributed legal control of profits to foreign subsidiaries, so that they could defer paying taxes on this money. However the money was often actually held in the United...

Out of paradigm with MMT but useful as an analysis of how the elite is likely to act when faced with the next recession based on core beliefs with respect to contractions. Could get ugly under this scenario. World Economic Forum The US is not ready for the next recession. Here's why Barry Eichengreen | Professor of Economics and Political Science, University of California, Berkeley

Good analysis of utopian versus utopianism. Short and important. The difference is that between ideal and real.  If the core assumptions are unrealistic and infeasible, then the consequent conceptual model will be "utopian" in the pejorative sense, and the project unachievable — "pie in the sky." If there is a disconnect between the ideal and the real, then it's utopianism. If the assumptions are realistic and feasible, then the conceptual model will be "utopian" in the positive...

Asymmetrical power. State capture by elites arises from asymmetrical power in societies rather than asymmetrical power being created by the state. "Might makes right." There are many factors involved in might other than physical force, but in the end, physical force is the ultimate enforcer. But in a cultured society, that is generally kept in the background and under liberalism, the elite has learned to be clever instead of brutal. But when push comes to shove.... Capitalism, like...

Is Bitcoin a Reaction to US Dollar Hegemony? Like Mike has been saying for some time. The DuranDe-dollarization and the rise of Bitcoin. Is there a connection between the two? Alex ChristoforouSee alsoThe iron fist of the US. As the launch of new ‘petro’ cryptocurrency draws near, a US government agency declared that this newcomer to the digital financial market may represent a violation of sanctions imposed against Venezuela, its issuer. Sputnik InternationalUS Treasury Warns About...

More potential $billions repatriation from fining the premier USD zombie nation:Trump tells @Reuters that he is looking at "big fine" against China in Section 301 case. “We’re talking about big damages. We’re talking about numbers that you haven’t even thought about." https://t.co/innCU3kINR— Shawn Donnan (@sdonnan) January 17, 2018

What the Tories didn't want to hear. [embedded content] The truth about Thersa May's government failure former met police officer Peter Kirkham told the truth liberals don't want to hear. For the last decade the rise of these problems have not gone away and, cutting police numbers will not help the problem, what is needed is a long term solution to help, Ms May and her penny pinching government are not the ones who will provide more police and resources.

Oh boy I can't wait to see how big the deficit is this month so far with all the tax cuts...Lets see here in the Cash Basis DTS thru January 16th:Total Withdrawals 636B - 440B Treasury Redemptions = 196B net withdrawalsSubtractTotal Withdrawals 666B - 463B Treasury Issues = 203B net deposits196B - 203B  equals..... wait for it .... -7B   ..... ie a SURPLUS!?!?!?Say it aint so!!!!Man-o-man.... How is the deficit going to ever get to $1.5T this year as EVERYBODY has been saying?Hmmmmm... ...