Mike Norman Economics

 Bitcoin mines require a lot of energy to power the computers inside. Greenidge Generation in New York has converted a former coal plant into a gas-fired Bitcoin mine.Facing criticism from environmentalists, the company argues it offsets its emissions, is 100% carbon neutral, and has plans to invest in solar energy.[embedded content]

Abstract Economics is a policy discipline. It is engaged with the problems, large and small, of social organization and the general good. As such it co-evolves with circumstances. It is historically contingent. The application of economic ideas to specific problems under specific circumstances may succeed or fail, and in the latter case, people with different ideas normally rise to prominence. Capitalism is an economic system whose characteristics and problems have preoccupied economists...

 I remember how when I was young many people would say that Ringo Star wasn't a great drummer. It went about that he was just the luckiest drummer in the world. I kind of accepted it as true, even though I thought he was competent and good enough, but George Hrab, a professional drummer, says he was a genius, and after watching his video, I tend to agree.Rather than show off, Ringo set about to make the songs sound as best as they could, and this sometimes meant under playing to give the...

I entered into a private conversation about techniques that academics use to isolate the alleged effect of fiscal deficits, quantitative easing, (etc.) on bond yields. I tend to be somewhat skeptical about such attempts, but there has been some work done that looked more reasonable. (I probably should highlight that research, but I would have to get back to it at a later time.) My argument is that if you want to any research in that area, you want to go after the 5-year rate, 5 years forward...

Treasury Dept to invoke ‘extraordinary measures’ as Congress misses debt-ceiling deadline https://t.co/MURNc5acVs #StockMarket pic.twitter.com/kGXOfOYSA0— Stocks News Feed (@feed_stocks) August 2, 2021 Why would interest rates spike if rates were negative?  “Debt ceiling!” doesn’t prevent redemption of any previously issued UST securities…“Though the federal government has never defaulted, economists say such an event would have disastrous effects on the U.S. economy by spiking interest...

I have recently updated my trade databases as I write a book chapter on the topic. I am also curious about the dramatic growth in freight charges over the last 12 months in international shipping. I have a friend who runs a business importing cement who is now paying 5 times the freight charges now than he was a year ago. Why that would be the case is an interesting question. I have previously written about the way that the neoliberal ideology became conflated with the trends towards...

"Inflation" is not a problem.Calculated RiskA Few Comments on InflationBill McBride

Why competition often doesn't work as advertised.InterfluidityEconomies of scaleSteve Randy Waldman

 Do the central banks have a digital master plan in place that will see them derail bitcoin and other cryptocurrencies before they have truly been established as a viable, decentralised alternative to fiat?The supply of Bitcoin is limited, say its advocates, but new cryptocurrencies are springing up everywhere. Cryptocurrencies are crypto assets, not currencies, plus they are awkward to use and not safe (as some vaults have been hacked into), says Marshall Glitter. Questioning digital...

 Britain is dragging its feet on the digital pound. Central bank digital currencies (CBDC's) are not cryptocurrencies, and don't need blockchain technology; they are just digital versions of the national currency. See below. The Chinese CBDC is also being designed for people who live in poor rural regions who don't have bank accounts. It has the latter’s guaranteed sterling value, but with the additional permanent and indelible record for every individual transaction of amount (including...