Mike Norman Economics

From my recent Torrens Zoom call, I ran into questions about procedures in the government bond markets. The main question was whether I saw potential changes to the markets to improve things. The second was more of a concern about the complexity and opacity of the bond market.Bond EconomicsAdvantages To Procedural Changes In Bond Market?Brian Romanchuk

Is he nuts??

Video and transcript.Michael Hudson — On Finance, Real Estate And The Powers Of NeoliberalismCan the US Re-Industrialize?Michael Hudson | President of The Institute for the Study of Long-Term Economic Trends (ISLET), a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City, and Guest Professor at Peking University

Spending flows have slowed considerably. A correction is coming. 

While the details of the post are specific to Australia, the MMT point is general, namely, that raising the price of "money" by increasing the interest rate adds an increased inflationary bias to already increasing inflation as the price increase of "money" is passed on to goods and services owing to increased costs and also monopoly power.The thinking behind this is apparently that increasing the price of "money" makes not only goods and services more costly but also the cost of borrowing...

In a recent meeting in Cape Town, South Africa, the foreign ministers of the BRICS countries, along with representatives from more than twelve nations, emphasized their intention to establish an international trading currency.Sounds more like an international payments system rather than a currency for public use. Some details are given but so far it is nebulous other than the joint commitment to do it.Covert GeopoliticsRussia Confirms BRICS Will Create A Gold-Backed Currency

Fiscal flows may already be slowing. That will trigger a market correction. 

China is traditionally "a nation of savers." This tradition needs to be reversed to achieve a "dual-circulation" economy, that is, a balance between domestic consumption and exports more in line with developed economies. Until now, China's growth has been export-driven. This makes China dependent on external markets; hence, liable to sanctions and protectionism. It also sets China up for being caught in the middle-income trap. The Chinese leadership is aware of both challenges and the...

Alex Douglas just published a post on arches and money which I quite liked. It is an easy read, and I will just offer my spin on one of his points. It also leaks into a discussion of engineering, which I will digress into at the end of this post.Bond Economics Alex Douglas On Arches And MoneyBrian Romanchuk

Framing tricks and controlling the narrative are the base tools of neoliberal economics. One character that pops up regularly is the Fickle, Flighty Foreigner. Worthy of a Shakespearean tragedy, they will brutally condemn any country that deviates from the divine path.Let’s explain the narrative trick and how to counter it.New WaylandSophistry or Shibboleth? - "Capital Flight"NeilW