Mike Norman Economics

It’s Wednesday and as usual I just present some short snippets that have attracted my attention this week and other things that distract me from economics. Today, we don’t talk about the British royalty at all – the events this week were from another world really. But what is not from another world is the continual nonsense being spoken and written about this inflationary period and how central banks and treasuries have to tighten up to ‘beat it’. Talk about anachronism. And once we have...

Fed rate hikes are drains on its own income. I said this would happen all the way back in 2008. Not likely to affect their ability to conduct monetary policy, but wait until Congress finds out. 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/

 Real resources and supply.Stephanie Kelton's introduction and Dan Alpert's analysis.The LensTalking Energy and Inflation with Westwood Capital's Dan AlpertStephanie Kelton | Professor of Public Policy and Economics at Stony Brook University, formerly Democrats' chief economist on the staff of the U.S. Senate Budget Committee, and an economic adviser to the 2016 presidential campaign of Senator Bernie Sanders

It's complicated. This is what happens when not thinking complicated issues through before taking action. This will just hasten the process of decolonization.Sputnik International (Russian state-sponsored media)Experts Explain How Germany's Anti-Russia Sanctions Threaten India With Food CrisisRishikesh KumarSee also at SIIndia Facing Tough Decision Over Fate of World's Largest Free Food ProgramGuterres: It's 'Essential' to Remove Obstacles to Export of Russian FertilizersEU Wastes More Food...

 Peter Radford takes down the "economic science profession."As an academic, I approach the issue somewhat differently. There is nothing inherently "wrong" about specialization and methodological choices. The problem arises begins with naming and extends to capture of an epistemological territory. Conventional "economics" has managed to capture an academic field based not on more successful explanation but rather as a result of acquiring the power to sideline competitors, some of whom have...

A little known fact is hat rate hikes drove the Reagan economic boom. Interest income transfers to the economy were the major driver of economic growth. 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/

In early August, I made the following observation. Reading the replies, I noticed that a handful of people thought I was claiming that a cabal of global elites was engaged in some backroom conspiracy to join in a collective effort to crush the proletariat. I wasn’t. What I was actually saying was that policymakers were (nearly) all leaning hard in the same direction at the same moment in time—tightening both fiscal and monetary policy—and that the predictable outcome would be a synchronized...

The Market is servant, not master because Sterling is a public monopoly and monopoly rules apply. Whether the government pays interest is entirely a policy choice. There is no reason at all for government to continue to issue Gilts or Treasury Bills, nor pay interest on them. Stopping interest payments will eliminate the interest income and forward pricing channels, causing inflation to decline faster. Moreover, it would make the implementation of a Central Bank Digital Currency that much...

I have been looking at The Moorad Choudry Anthology: Past, Present and Future Principles of Banking and Finance (Amazon affiliate link, and as the title suggests, by Moorad Choudhry) as a source for my banking primer. Professor Choudhry teaches in the M.Sc. Finance at the University of Kent Business school, and previously worked in a bank treasury department. The book is impressive, clocking in at 1252 pages (not counting end matter). As an academic text, it is not cheap, but is a good...

I remember a conversation I had when I was picked up hitch hiking to Melbourne from where I was living down the coast. It was during the 1970s inflationary period, which had morphed into stagflation as a result of deliberate government policy to create unemployment and discipline the wage-price spiral. The driver was a manual worker and during a conversation about the state of the economy (I was studying economics at the time) he said “the government should care about employment because at...