Mike Norman Economics

The question is, cui bono? Under the present system, the financial benefit flows to the top, although other derive some economic benefit as a result of the flow. Fiscal injection (government spending) eventually flows either to saving or taxation. When tax policy is progressive, the flow is largely to taxation. Otherwise, the stock of savings increases. This increase in the stock of savings increases distributional asymmetry aka "inequality." That is to say, in the later case there is a...

Power can flummox even the best economist. A typical explanation of events in an economy makes scant reference to the way in which power distorts the wondrous smooth motions that so obsess the discipline. It’s almost as if human relationships don’t exist in those wonderful models they are all so proud of. For the rest of us, power is central. It takes little time to realize that establishing an imbalance can have all sorts of advantages. They most notable being that it defeats or...

Donald Trump launched a trade war with China. On 6 July 2018 he placed 25% tariffs on $34 billion of imports from China and on 23 August 2018 he placed 25% tariffs on an additional $16 billion of imports. On 24 September 2019 he added 10% tariffs on $200 billion of imports and in 2019 and 2020 added tariffs on an additional $300 billion of imports. Chad Bown and Melina Kolb provided a detailed timeline of the trade war...

I had an Op Ed published in the UK Guardian today (my time) which analysed the latest inflation scares that have been dominating the popular media. More and more mainstream macroeconomists are coming out and asserting that economies will overheat. The usual gold bugs have been delighted by this shift in the narrative back to the obsessions and manias that keep them occupied on a daily basis. What was interesting to me was the responses of the commentators to the Guardian Op Ed. If the...

I have been re-reading the Functional Finance and the Federal Debt paper this afternoon. There are crucial differences between Functional Finance Theory (FFT) and Modern Monetary Theory (MMT). Therefore, it (MMT) was not all in Lerner. Let me comment on FTT from an MMT perspective....econoblog 101How Functional Finance differs from Modern Monetary Theory (MMT)Dirk Ehnts | Lecturer at Bard College Berlin, research assistant at the Technical University of Chemnitz, and spokesperson of the...

The growing cryptocurrency sector needs to be regulated to protect users from online scams and prevent it from being used in crime such as money laundering. The growing popularity of cryptocurrency is perceived as a danger to central banks, as they are concerned about the impact that a volatile decentralized currency can have on their economy.  Tough regulations are coming for the cryptocurrency sector 

Preparing for decoupling, a stepping up of the arms race, and an even closer relationship of China and Russia economically and militarily, with the likelihood of technology-sharing increasing. They both know that if one goes down, the other will soon follow.This is now becoming pretty overtly a zero-sum fight to the finish as the dragon and bear react to the eagle and bull-dog as bridges are burned and positions hardened.This does not bode well for the global economy excepting weapons and...

The Fed told us that it was not going to raise rates and I TOLD YOU that bond yields would fall. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/

 Jeff Bezos net worth - 186.2 billion USDElon Musk net worth - 151 Billion USD Bill Gates net worth - 126.7 Billion USDMark Zuckerberg net worth - 119.7 billion USDThe universe has been in existence for roughly 14 billion years.

I have been working on an article that will come out in the press soon on inflationary pressures. It is obvious that characters like Larry Summers and Olivia Blanchard are trying to stay at the centre of the debate by issuing various lurid threats about the likelihood of an inflation outbreak in the US and elsewhere. Last week, the Financial Times published an article (June 3, 2021) by the former German Finance Minister and now President of the Bundestag, Wolfgang Schäuble – Europe’s social...