Mike Norman Economics

The Fed is likely to continue to raise rates if only to maintain its credibility, even though higher rates are price increases from the MMT POV, and the augmented interest payments constitute a fiscal increase.Zero Hedge"Horrible"... "Brutal"..."A Disaster For Democrats": A Shocked Wall Street Reacts To Today's CPI Nuclear BombTyler Durden

[Sam] Taylor claimed: "Financial markets will punish fiscal irresponsibility, and Scottish independence would be fiscally irresponsible on a vastly greater scale.”Unfortunately for both Ferry and Taylor the logic of their arguments was already debunked by various economic experts, including Professor Bill Mitchell, Professor Stephanie Kelton, Nathan Tankus, and Brian Romanchuk. Let's break it down.…The National (Scotland)Would an independent Scotland be facing a crisis like Liz Truss's...

I ran across Carolyn Sissoko’s working paper “Financial dominance: why the ‘market maker of last resort’ is a bad idea and what to do about it” (link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4240857). Although I agree that non-bank finance (“market-based finance”) is going to be the source of financial instability under current institutional arrangements in the developed countries, I am not too sympathetic with her framing of the issues. Private sector balance sheets have been...

On July 21, 2022, the Bank of Japan issued this – Statement on Monetary Policy – which outlined that it would continue to use its capacities to implement ‘Yield curve control’, whereby the “Bank will apply a negative interest rate of minus 0.1 percent to the Policy-Rate Balances in current accounts held by financial institutions at the Bank” and “will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at...

😂😂😂😂😂Bubbe Janet too busy out climate nuttering to know what’s going on in her real job….How it started vs how it's going a day later. pic.twitter.com/DgzudviEDu— Lyn Alden (@LynAldenContact) October 12, 2022

The money to buy Treasuries comes from government spending itself. And since the government pays a higher interest rate than a checking account or cash, there will always be buyers. Major Foreign Holders of Treasury Securities https://ticdata.treasury.gov/Publish/mfh.txt Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics:...

It is important to note that the proposals for a supranational currency have been made with various, disparate goals. Some are primarily interested in some aspect of commodities, others primarily or completely the supranational-currency aspect. These can overlap in several ways. The primary possibilities:...ClintBallinger.comTypes & Motivations for Supranational CurrenciesClint Ballinger

Ill-conceived monetary policy.Michael Roberts Blog — blogging from a marxist economistShock therapy on the world economyMichael RobertsSee alsoZero HedgeHere Comes The Open Revolt: A Reeling Europe Lashes Out At The Fed For "Bringing Us To A World Recession"Tyler DurdenSputnik International (Russian state-sponsored media)Indian FM Says Global South Feeling ‘Frustrated’ With West For Neglecting High Fuel & Food Prices

The next step in decoupling as the Global North/West and Global South/East further divide.Zero Hedge"No Possibility Of Reconciliation" Any Longer: US And China Are Now "Officially In An Economic War"Tyler Durden

It’s Wednesday and overnight there has been a Twitter storm, which like most of these Tweet Crazes, is about nothing at all and only serves to embarrass the Tweeters, not that they are aware of the humiliation. I refer to the statements made overnight by the Bank of England boss who reiterated press releases the day before in saying the Bank would not continue to prop up pension funds who had mismanaged their assets. The Twitterati seemingly didn’t really get the point. And while we are on...