Mike Norman Economics

This overly simplistic analysis misses the mark there is more to it than this Accounting:This is why understanding accounting is so important. If I’m a bank with $100 in assets, $90 in deposit liabilities, and $10 equity (residual), my total equity capital as % of assets = $10 / $100 = 10%. If reserves and deposits both ⬇️ by $10, now equity capital = $10 / $90 = 11% https://t.co/eKQKyCWWbW— Applied MMT Podcast 🎙️ (@AppliedMMT) August 10, 2023 The MMT people say this here which implies a...

Big opportunity up ahead.

China replicating Japan's rise? After WWII Japanese goods were infamous for being cheaply (poorly) mad. How that changed over the years. Is Chinese tech and manufacturing set to replicate that cycle? It won't happen overnight, but neither did Japan's rise. At least the challenge has been thrown down, and those who benefit most from competition are consumers.Yahoo FinanceChinese electric car giant declares war on Western rivalsHoward Mustoe

Marx called the liberalism of the US and UK "bourgeois liberalism," that is, the freedom of capital (the ownership class). to exploit labor (workers) and land (the environment). The attempt John Rawls made to answer Marx from the vantage of Anglo-American liberalism was not successful. Liberalism as freedom and equality of persons is inherently incompatible with capitalism as private ownership and control of the means of production. Neither is it compatible with distribution through markets...

Sometimes it’s so easy to take the money of the monetarist zombies. Today was a perfect example. 

Some people might’ve taken my comments the wrong way yesterday. I love dogs.

Nominal GDP targeting is the latest mainstream fad, which is allegedly going to improve central banking when compared to inflation targeting. In a certain sense, I have some sympathies. If a central bank could stabilise nominal GDP growth, it has abolished the business cycle. I am in favour of abolishing the business cycle. Doing so would not solve all economic woes, but it would be the most that can be hoped for from macroeconomic stabilisation policy. Unfortunately, there is no reason to...

Sometimes everything comes together in unintended ways. That has happened to me this week. I am moving office tomorrow, and I am also moving home, and if that wasn’t enough, I received a call from a union I help out with advice who wanted some urgent work done. The major employer had presented a sort of ‘take-it-or-leave-it’ offer that if accepted would see the workers more than 8 per cent worse off in real terms at the end of the 4-year agreement than they were when they last had their pay...

Fiscal transfers are peaking for this cycle. Fading support for the market.

These slugs now getting 5.5% free munnie on $576B from the Biden Fed… $32B annual for doing nothing…  probably a lot tax free in foreign accounts…. 🤑And the Art degree Monetarist morons think this is somehow bearish?  🤔Cash on hand: Apple: $167 billion Berkshire: $150 billion Microsoft: $118 billion Amazon: $65 billion Meta: $53 billion Tesla: $23 billion This is wild 🤯— Matt Allen (@investmattallen) August 8, 2023