Mike Norman Economics

Today (August 9, 2024), MMTed releases Episode 3 in the Second Season of our Manga series – The Smith Family and their Adventures with Money. Have a bit of fun with it while learning Modern Monetary Theory (MMT) and circulate it to those who you think will benefit …William Mitchell — Modern Monetary TheoryEpisode 3 of the Smith Family Manga (S2) is now availableBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of...

I like shooting as a sport and recreation. 

The financial markets around the world have over the last week demonstrated, once again, that they are subject to wild swings in irrationality despite mainstream economists holding out the idea that these sorts of transactions exhibit pure rationality. Some of the capital movements are explained by a shift in the interest rate spread between Japan and the US as the former nation decided to increase interest rates modestly. That altered the profitability of financial assets in each currency...

Just ask anyone off the street and by simple common sense they will understand what is going on better than the so-called pros.

Anyone could’ve made that call yesterday but what I’m saying now is what is going to be important. 

The market has conditioned investors to expect this, but it is not going to happen this time. 

There is an interesting debate going on in the UK at present about the concept of tiered bank reserves. The concept is now being used by commentators to argue that the new British government does not need to inflict the austerity that the Chancellor has now announced (even though she is denying that is what the government is up to) because the government can simply reduce outlays to the commercial banks in order to meet the fiscal rules. The discussion is rather asinine really and features...

If he can get back in, would be substantial fiscal stimulus… Trump at least talking about economic proposals Dems just talking about all the transgender and climate nutter stuff while prices for real items remain elevated, unemployment rate keeps rising and rate of job creation keeps falling…[embedded content]Trump telling Powell at the Fed not to modify the policy rate before the election if he wants to finish his term if Trump gets back in…. Prediction markets now 100% probability of a cut...

This was not just a correction. The economy is about to stall and stocks will continue to fall.