Mike Norman Economics

 Yves Smith's introductionYves here. It is frustrating to see a normally solid YouTuber almost go off the rails by getting outside his area of expertise, geopolitics, and fall for libertarian scaremongering. We’ve commented before on the tendency of certain schools of commentary to fall into belief clusters, so anti-globalists are anti-dollar hegemony (and often crypto fans) to the degree that they have not bothered understanding how a currency issuer like the US operates. A currency issuer...

I am travelling all day tomorrow so I am bringing forward the normal blog post to today. I am pleased to announce that from today the MMT MOOC which we ran through the University of Newcastle’s edX facility over the last few years is now available through MMTed on an on-going basis. Read on to get the full details and access. William Mitchell — Modern Monetary TheoryModern Monetary Theory: Economics for the 21st Century – MOOC – now available via MMTed.orgBill Mitchell | Professor in...

Trump promising a return to 3% mortgages if he can get back in…He’ll have to tell his Central Bank to lower the policy rate down to at least 2% to hope to get his 30-yr fixed back to 3%…Donald Trump says his plans to slash regulations will get mortgage rates 'back down' to 3%, per FORTUNE— unusual_whales (@unusual_whales) September 9, 2024

Unless there is some alternative, which there is not at this time dips in the dollar should be bought. 

Today (September 6, 2024), MMTed releases Episode 5 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 5 of the Smith Family Manga (Season 2) is now available – the Finance Report hots upBill Mitchell | Professor in Economics and Director of the Centre of Full Employment and...

Some concern by Monetarists out there that current short term risk free rate of interest compared to the average of a past period of the short term risk free interest rate is a cause for serious concern wrt equity prices…Think of financial asset prices as a function of the equation P = (A-L)/A where A and L are Depository system Assets and Liabilities…At point 1 the fiscal surpluses were being saved in the TTL accounts at Depositories increasing system L by $100Bs … at point 2 the Fed...

The USA cannot borrow dollars unless the dollars are put there first. 

They now see this as a bearish development. 

If so, that is the most important thing for the market.

Stocks will follow the economy, and there is a slowdown happening, which will become more pronounced.