Mike Norman Economics

In the latest IMF Finance and Development journal (March 2023), there is an interesting article by the former governor of the Bank of Japan, Masaaki Shirakawa – It’s time to rethink the foundation and framework of monetary policy. It goes to the heart of the complete confusion that is now being demonstrated by central bank policy makers. With their ‘one trick pony’ interest rate attacks on inflation, not only have they been inconsequential in dealing with that target (the so-called price...

Narrow banking is a concept for a bank that holds 100% reserves against deposits. It attracts people who are deeply concerned about the symbolic content of “money” on both the left (e.g. Positive Money) and the free market right (the Chicago Plan). Devotees of narrow banking are happy to talk your ear off about how their plans work, so I leave finding out more as an exercise as a reader. I just want to focus on the core principle: they want banks to not take risks lending deposits, so that...

Overview: This was an impromptu conversation precipitated by former Congressman Dennis Kucinich to have a deep dive discussion with a former economic advisor, Michael Hudson, on the shockingly large recent bank collapses. As the former chair of the powerful Government Oversight Subcommittee, Kucinich had a ringside seat in unraveling the bank collapses after the housing bubble burst. He confronted the players in the field with withering questions in Congressional hearings. Now Kucinich...

Forget 50 bps. Not even 25 bps. There could be no increase, and markets will go nuts. Here's how. 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. https://www.pitbulleconomics.com/understanding-daily-treasury-statement-video-course/?s2-ssl=yes

A dual U.S.-Greek national working for Meta Platforms Inc. was hacked by the Predator spyware for around one year in Greece, the New York Times (NYT) revealed on Monday.At the time, Artemis Seaford was in Greece working as a trust and safety manager on Meta’s security policy team.Why she was hacked is unclear, but it’s now certain that her phone was hacked by Predator. According to NYT, this could make her the first known case of an American spied on in Europe using such technology.Predator...

Today U.S. Senator Josh Hawley (R-Mo.) announced the first piece of legislation in his new Worker’s Agenda to Rebuild America. The Ending Normal Trade Relations with China Act would revoke China's normal trade relations status to reduce our dependency and protect America’s working class.China is America’s greatest adversary. To win the fierce economic competition for jobs, industry, and the future, America must return to the long-standing formula for American success: strong and independent...

Some indication that supply-chain issues are normalizing. If the trend persists, this would portend lower supply-side inflationary pressure.Angry BearThe Fed’s New Supply Chain Pressure Gauge just went Negativerun75441Also by run75441Medicare Advantage uses Algorithms to block care for Seniorsrun75441

It should be obvious to just about anyone by now that transnational capitalism cannot survive in its present form if humanity is to survive. The amount of negative externality that is not priced in is too great. Markets are not a mechanism that delivers accurate economic calculation, contrary to what Hayek argued in his Nobel Prize Lecture (1974), and is now widely accepted as received wisdom. Valuation is biased by failing to consider true cost and reliance on this is leading to more...

The macro numbers just don't add up. I think a lot of this is hysteria and unnecessary contagion. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ Understanding the Daily Treasury Statement video course. https://www.pitbulleconomics.com/understanding-daily-treasury-statement-video-course/?s2-ssl=yes

What is missing from the debates over monetary policy today is the understanding that the Fed was not established to control inflation. It was created to prevent financial crises by acting as a lender of last resort in times of distress. Indeed, that’s exactly what the Fed is doing now — opening up its lending facilities to banks in need. But rather than focus on maintaining financial stability, the Fed has become obsessed with controlling inflation, something it cannot really do without...