Mike Norman Economics

Investment boom, crowding out consumption.— Warren B. Mosler (@wbmosler) May 31, 2024 Odd "X" posts from Warren Mosler recently talking about "crowding out." He says business investment is "crowding out" personal consumption. This is an odd claim because crowding out is not a condition that would be claimed under MMT understanding, where money is a function of demand and where there is no theoretical limit to its creation. (Under a free-floating FX regime.)If business spending rises and...

Stocks will fall as the economy slows. 

Second-quarter shaping up to be the same or worse. 

I invited Stephanie Kelton to speak at our Man Alternative Investment Symposium in Oxford in 2021. Kelton was Bernie Sanders’s economic advisor and a leading proponent of Modern Monetary Theory (MMT), a neo-Keynesian movement that asserts that there ought to be no theoretical limit to a country’s ability to borrow, providing that it is in control of its own currency. Kelton and Sanders were near-perfect exemplars of the kind of “fiscal irresponsibility” (as their opponents would see it) that...

After all these years of trying, the insights provided by Modern Monetary Theory (MMT) still haven’t cut through. One doesn’t even need to accept the complete box of MMT knowledge to know that, at least, some of it must be factual. For example, how much brainpower does a person need to realise that a government that issues its own currency surely doesn’t need to call on the users of that currency in order to spend that currency? Even if we could get that simple truth to be more widely...

Stocks got ahead of themselves recently, and are now starting to reflect the slowdown and economic growth. 

Despite how much it has appreciated, Nvidia is still not overvalued. 

Current MAGA thesis… “inflation!”…  “deficit too high!”… “the dollar is going down!”…  same shit as always…. if Trump gets back in he’s going to have a lot of trouble with these Art Degree morons on his right flank…

Before we know the answer to that there’s one thing we need to watch. 

The only profitable short term traders have an edge, and you don’t have an edge.