Mike Norman Economics

 China is risking its economy to save lives.China's zero covid policy. [embedded content]https://youtu.be/NxEDHUBnQZw

The Australian Bureau of Statistics released the latest labour force data today (January 20, 2022) – Labour Force, Australia – for December 2021. The situation is this: most states have now abandoned Covid restrictions. The December survey was taken a few weeks after the ‘opening up’ and before Omicron got settled at parties, events, restaurants and wherever else it is lurking. Infections are now very high but the data only captures the opening up effect (with some Omicron impact)....

A $3T deficit has rapidly shrunk to a near surplus, and with it, the financial balances of the non-government are being drained rapidly.

Light day for links.CaitlinJohnstone.comThe US Empire Is More Dangerous Than Ever Before: Notes From The Edge Of The Narrative MatrixCaitlin Johnstonehttps://caitlinjohnstone.com/2022/01/19/the-us-empire-is-more-dangerous-than-ever-before-notes-from-the-edge-of-the-narrative-matrix/TASSDelaying Nord Stream 2 hurts Europe’s economic development, warns Kremlinhttps://tass.com/economy/1390275EU Observer — OpinionEven without war, Russia has defeated Europe alreadyJonathan...

Compounding the trends, China’s GDP per capita has reached $12,551, crucially above the notorious “middle income trap”; above the global average GDP per capita; and now entering “high-income country” territory, as defined by the World Bank....Note that while Pepe Escobar is a good geopolitical analyst that provides a lot of information, he is out of paradigm with MMT regarding economics, but so is just about everyone. Strategic Culture FoundationMr. Xi plays Davos ManPepe...

De-dollarization resulting from weaponization of the USD.Sputnik InternationalRussia Dumps $900 Million More in US Treasuries as Total Investment Hits Historic Low

Each side view the others as the aggressor.  Same with Russia and US/NATO.Asia Times Textbook dilemma traps US, China in a war spiral - Asia TimesDenny Royhttps://asiatimes.com/2022/01/textbook-dilemma-traps-us-china-in-a-war-spiral/

The Wealthiest 10% of Zip Codes Provide 67% of ‘Maxed Out’ Contributions to Congressional Candidates, and the Richest 1% of Zip Codes Account for 25% Taylor Lincoln January 18, 2022Quid pro quo?Public Citizen (PDF download)The Well of CongressTaylor LincolnJanuary 18, 2022

I received a comment from a reader of my blog (“Lawrence”) that pointed out an article by Jonathan D. Church of the Bureau of Labor Statistics that discussed breakeven inflation implied forecast accuracy (link). The idea is that we want to compare inflation breakeven rates to what inflation is realised over the life of the bond (what the breakeven inflation rate is the expected value of).I discussed this topic in greater length in Section 3.5 of my book Breakeven Inflation Analysis. The...

Dick Bove takes the cake on this one. He even makes Schiff look smart.