Mike Norman Economics

The US is having a hissy over the OPEC+ production cut. Not a good look.Some congress-critters are actually suggesting that the US seize Saudi assets in the US.Naked CapitalismThe U.S. Is Preparing Its Response to the “Short-Sighted” Strategy of OPEC+Yves Smith

Wealth (savings) in the form of US Treasury securities in the private sector that are default risk free in that they are liabilities of the US government, a currency sovereign capable of meeting its obligations in the currency it issues as monopoly supplier. But why issue these liabilities in the for place if they are not necessary operationally in the current floating rate monetary system? While there is a a rationale for a government issuing some securities based on the role they play in...

Quotes.This is essentially a recap of Keynes's criticism of Tinbergen's approach to econometrics. The basis of the issue is the assumption that the social sciences are sufficiently like the natural sciences to enable use of similar methodology. Keynes argued that this assumption is wrong. The subject matter of economics is historical and institutional, that is, variable, and in social systems, the data lacks the homogeneity of the natural sciences. See the blog post by Lars, Econometrics:...

Been working on this project for a while. The Yankee tender.

The geoeconomic pathway away from the neoliberal order is fraught with peril, but the rewards in establishing an alternative system are as promising as they are urgent,...The CradleMichael Hudson: A roadmap to escape the west’s strangleholdPepe Escobar interviews Michael Hudson, President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and Guest...

The reality is that the decision to cut production is completely rational from the point-of-view of OPEC+. With interest rates rising quickly and growth slowing, Europe, which makes up around 19% of total oil consumption, is almost certainly facing down a serious recession next year. There is also a risk that the United States and Canada will fall into recession at the same time — these countries make up a further 27% of total consumption.OPEC+ does not want to see history repeat itself. In...

A young girl on Tik Tok apparently gets it. More intelligent than Powell, Yellen and probably everyone in Congress. 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: https://mikenormaneconomics.blogspot.com/ Understanding the Daily Treasury Statement video course....

Availability of real resources and inflation. Fertilizer shortage results in higher food prices. Angry BearWe Really Need to Talk FertilizerMichael SmithSee alsoInflation results in increases in managed economies in areas where the market economy is insufficient, notably energy. Food is another candidate in that it is a vital resource. This is characteristic historically of wartime economies.Project SyndicateThe State Is Taking Back EnergyNick ButlerAlso at PSGermany’s Emerging War...

Well things are going to get messier with the decision yesterday by the OPEC+ cartel to significantly reduce the oil supply and push up prices. On the one hand, when OPEC was first formed and pushed prices up, while there was significant disruption to oil-dependent nations, the substitution that followed (home oil heating abandoned, larger cars replaced by smaller cars, etc) was ultimately beneficial. So given that we need less cars on roads and less kms travelled by cars, one might consider...

Here she actually exhibits a better introductory understanding of these flows than most Art Degree PhD economists and  Jurist Doctorates:Your move, IRS pic.twitter.com/q5PrD1vaWO— Not Jerome Powell (@alifarhat79) October 5, 2022 Doesn’t give herself enough credit and gives up too easily but she’s starting to exhibit a better understanding than the morons in charge we see out there everyday...