Mike Norman Economics

The single interest rate lever is supposed to be Pavlovian in its stimulus/response. When the rate goes down that means “spend”. When it goes up it means “don’t spend”. That’s the belief, which fiscal policy is supposed to follow along behind like a faithful hound.What’s amusing is that this response process doesn’t appear to take into account expectations....New WaylandThe Perpetual Problem With Interest RatesNeilW

 This Michael Hudson interview is excellent! The covid conspiracists blame the Lockdowns for harming the economy, but Michael Hudson says it's the financial sector that is stopping us from coping with the pandemic effectively because it is syphoning off too much money. Even before the pandemic, people were made to think that it was their fault that they are not doing well financially, because they have been made to feel that if they were more clever and worked harder, then they would do well...

Agreement ‘could be reached’ this week following movement on major sticking pointNo country had raised ‘stop sign’ clearing way for political endorsement, diplomat saysThe deal would give Beijing much-needed diplomatic breathing space as US president-elect Joe Biden prepares to forge stronger ties with European partners to confront growing Chinese assertiveness. Under the deal, European businesses would enjoy a more privileged investment environment in China than their American counterparts,...

 Backgrounder on Turkey and Central Asia.The Vineyard of the SakerTurkey pivots to the center of The New Great GamePepe Escobar via Asia Times (paywall)

I don't know much about WOKE, except that at its extremes it seems crazy. I think it's mainly a few young people with problems, who will eventually grow out of it, but the Right has turned it into a conspiracy theory. Anyway, it's the Anti-Woke crowd who get me more into a rage, when they set straw-dolls by finding a few rare extreme examples. Anti-woke outrage is now a brand and the new anti-woke justice warriors, with their large platforms, used mob intimidation to court likes and...

 Philippine leader pressures Washington after procurement delaysPresident Rodrigo Duterte has threatened the U.S. that the Philippines will end a key military agreement if millions of vaccines against COVID-19 are not delivered.Duterte threatens to end US military pact if no vaccines

 Larry Wilkerson says the Military-Industrial Complex needs China and Russia as enemies to justify its massive budget. He says they are running a racket and that Russia-gate is a lie. But he's moderately optimistic for the future of the Republican Party as the new younger members have had enough of Trumpism and want the older more moderate party back. They are not racist, he says, and are far more open to progressive values.[embedded content]'The emergence of a third party is among us' -...

This what the US should have done decades ago when tech monopolies were rising. Did China learn from the US experience not to ignore this? They aren't exactly nipping it in the bud, but they are taking action early enough to prevent a monopoly culture from solidifying. In contrast, Peter Thiel is saying in the US that monopoly is the only way to go."Monopoly is the condition of every successful business." "All happy companies are different: each one earns a monopoly by solving a unique...

There is insufficient awareness on the American side that the danger of a nuclear confrontation is growing....Gloves coming off.India PunchlineUS risks confrontation with RussiaMK Bhadrakumar | retired diplomat with the Indian Foreign Service. See alsoVeteran US diplomat Chas Freeman says that despite talk of a New Cold War between the US and China, the US in reality is reacting aggressively to a rising Chinese power whose economic gains threaten US global supremacy. “We’ve become...

I have been waiting for this. Thanks, Neil!New WaylandAnatomy of an FX TransactionNeilW