Mike Norman Economics

Following the latest banking crisis, monetary authorities should seriously consider how modern digital technologies could be used to avert such problems in the future. A central bank digital currency would both eliminate many barriers to financial transactions and end the risk of bank runs once and for all.... Project SyndicateThe Simplest Fix for BankingJan Eeckhout | Professor of Economics at Universitat Pompeu Fabra

I told you not to pay attention to these manic Fed-driven moves.

The war game just changed big time, actually for the first time since the dominance of sea power and then air power. This transition makes a great deal of very expensive military equipment obsolete. Moreover, the West is following in this domain, and not leading.This article does not mention another emergent military domain, space. Spending on missiles, missile defense, and space capabilities will shape the bulk of military spending, inclduing research and production, going forward.This will...

Yves here. I’m preserving the original OilPrice headline since it invokes one of the themes of a new pro-fossil-fuels messaging campaign, that migrating to cleaner energy sources is contrary to energy security. It’s not hard to see that message hitting home with a lot of voters, particularly ones that live in suburbs or other area with poor public transportation, or in parts of the world where there’s not enough sun for rooftop solar to be anything more than a secondary power source.One...

I had a sense of déjà vu this week when I read the latest release from Australia’s Productivity Commission – Advancing Prosperity – which was released on March 17, 2023 and is a five-yearly exercise conducted by the Commission on behalf of the Australian government. Frankly, if the government was looking to cut spending while advancing material well-being in the community, they could simply tell the Commission to cease doing this work and instruct the staff involved to get real jobs and do...

Fiscal flows are strong. The economy is good. Powell just sticks his foot in his mouth every time he talks. No big deal. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.mmteconomics.com/ Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ Understanding the Daily Treasury Statement video course....

Matt Franko is a very insightful person when it comes to monetary policy, banking regulation, and MMT economics. He talks about the SVB situation, bank regulatory and more. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.mmteconomics.com/ Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ Understanding the Daily Treasury Statement video course....

After rooting through the IMF’s World Economic Outlook Data Base, [Richard] Dias [of Acorn Macro Consulting] conducted a comparative analysis of the percentage of global GDP adjusted for PPP between the G7 and BRICS, and made a surprising discovery: BRICS had surpassed the G7.This was not a projection, but rather a statement of accomplished fact: BRICS was responsible for 31.5 percent of the PPP-adjusted global GDP, while the G7 provided 30.7 percent. Making matters worse for the G7, the...

In Moscow this week, the Chinese and Russian leaders revealed their joint commitment to redesign the global order, an undertaking that has 'not been seen in 100 years.'Can this traspire without WWIII, already being waged through hybrid warfare, without going kinetic. If t goes hot, can nulear winter be avoided? These are the questions on the table now that the gauntlet has been thrown down.The CradleIn Moscow, Xi and Putin bury Pax AmericanaPepe Escobar

Anyhow, this exchange led me to believe that regulators applied some common sense to their stress test exercises and examined how bank assets would fare in all bad but plausible circumstances. In the years 2020-21, when 10-year Treasury rates were at times flirting with 1.0 percent, a sharp rise in interest rates had to be seen as a plausible, even if unlikely, possibility.Incredibly, the Fed stress tests did not consider this scenario. This means that the Fed’s stress tests would not have...