Mike Norman Economics

Student loan debt is a crushing problem in America. Over 44 million people have such loans, with an average balance of about $30,000 — making for a total debt pile of $1.4 trillion. Unsurprisingly, people often struggle to repay these debts with their entry-level wages after graduating. Student debt is now the most common form of troubled debt, with about 11 percent of them 90 days or more delinquent. Worse still, thanks to Republicans and neoliberal Democrats alike, they are almost...

Equally patent is the fact that the traditional indicators of forward inflationary pressure (e.g. money velocity) are not quite in agreement with the measured inflation (which has exceeded the Fed target four months in a row now and has been beating analysts' expectations over the last three months). The only way the two figures can be reconciled is via increased debt levels on household balances sustaining consumption growth.… true economicsMoney Velocity and Signals of Households Leverage...

Another really interesting video which shows how the deep state works. The Dulles brothers worked for the CIA but also worked in Wall Street at their law firm, it was a revolving door. The Dulles brothers did not work alone but were part of the ruling elite who really run America. This inside group of ultra rich would make all the decisions, what counties leaders were going to be disposed of, all the coups, and every war. They run the corporations and had significant shares in the others and...

Ramanan analyzes the sleight of hand going on in the neoclassical world now regarding employment and fiscal policy.The Case for Concerted ActionTwin DeceitsV. Ramanan

If Bitcoins are indeed worthless, then financial markets should price them at zero. But the introduction of futures trading actually boosted the price in the short run. Even after recent declines, there’s no sign that prices will reach zero any time soon. On the other hand, if Bitcoins are valuable simply because people value them, then asset prices are entirely arbitrary. The same argument can be applied to any financial asset. John Quiggin's BlogBitcoin kills the efficient market...

The speech is not short but it is important considering this is the Bundesbank.The conclusion at least is a must read. 7. Conclusion Ladies and gentlemen I was born in the United States, grew up in Germany, and spent much of my life working around the world, including London. Personally, the backlash against the integration of our global community has shattered my core beliefs and worries me deeply. But I accept that global economic integration has gone too far. Theoretically, it may be...

Article from American Banker quantifying the hit that banks had to take recently due to the Jan 1 tax reform at maybe around 3% of total bank capital and perhaps more to the systemically important banks. “Banks are going to have to shrink the size of an asset on their balance sheets,” said Bill Reilly, an accountant at Grant Thornton who advises banks. “Their future tax deductions will be worth less.”...if Capital One records a $976 million charge, that represents 3.65% of its total equity...

 It doesn't take a crystal ball to see where this is going. The conventional wisdom reinforced institutionally is that Venezuela is "bankrupt." Even though the bolivar is nominally pegged to the dollar, Venezuela  is potentially a currency sovereign and has huge energy reserves. When the ruble was under attack, Russia floated the currency. Venezuela can make that choice, too. So the claim that Venezuela is "running out of money," or becoming "insolvent" is bogus.The obvious (neoliberal,...

In an interview with ProMarket, Nobel Prize-winning economist Angus Deaton talks about the connection of rent-seeking and monopolization to rising inequality. ProMarket — The blog of the Stigler Center at the University of Chicago Booth School of BusinessAngus Deaton on the Under-Discussed Driver of Inequality in America: “It’s Easier for Rent-Seekers to Affect Policy Here Than In Much of Europe” Asher Schechter

Nice post on trade, citing Joan Robinson and Nicholas Kaldor.The Case for Concerted ActionMore Free Trade OrthodoxiesV. Ramanan