Mike Norman Economics

Artist SpotlightEpisode One image: "If the taxpayers fund the government spending and they get the money from businesses who get it from the taxpayers when they buy things, then were do the taxpayers get it from?Episode OneThe Centre of Full Employment and Equity’s MMTed project has recently launched a new manga comic book series entitled “The Smith Family and their Adventures with Money”. A collaboration between Modern Monetary Theory (MMT) pioneer and Economics Professor William Mitchell...

One of the founding concepts of Modern Monetary Theory is sectoral balances. And its power lies in its simplicity. Every economy can be broken down into three sectors: The government sector, the private sector (which includes me and you) and the foreign sector. Assuming a balanced budget, then government spending increases our net-wealth. A government deficit is our surplus.The National (Scotland)Scotonomics: Why the UK Government's fiscal deficit is our surplus

Remember, everyone was selling last week.

What the monetarist zombies have been waiting for for the last 20 months.

Oops!  Down to 1.2% projected for Q4…. Let’s see if the MMT people repost this one … (Tip: don’t hold your breath waiting doesn’t fit the Democrat narrative).On November 1, the initial #GDPNow model nowcast of real GDP growth in Q4 2023 is 1.2%. https://t.co/OnYxN0CQUF #ATLFedResearch Download our EconomyNow app or go to our website for the latest GDPNow nowcast. https://t.co/ISzNblWfFW pic.twitter.com/u9CweBwBaD— Atlanta Fed (@AtlantaFed) November 1, 2023 Hard to see how a few $100B of...

I ran across a couple lame attempts at blaming the U.S. Treasury for not extending the duration of issuance during the pandemic low in yields. This is entirely typical for market commentary — going after fiscal policymakers and ignoring the major culprit, which is the central bank. To the extent that the United States has put itself into an awkward macro stabilisation situation with respect to interest rate expenditures, it is the result of the brain trust at the Federal Reserve.One could...

It’s Wednesday and I use this space to write about any number of issues or items that have attracted my interest and which I consider do not require a detailed analysis. The issues discussed may be totally unrelated. Today, I provide my response to yesterday’s decision by the Bank of Japan to vary its Yield Curve Control (YCC) policy, which some commentators are frothing about. The change was very minor and is not a sign that the expansionary position of the Bank is shifting significantly. I...

Cleveland Fed now at 0.07% for October:Projects to less than half their alleged “inflation” target… Meanwhile these psychos want to still appear “hawkish”… 🤔

More crazy clueless stuff from Stanley Druckenmiller. 

No borrowing. Money already there.