Mike Norman Economics

MAGA with the best technical explanation of the current banking system problems I’ve seen: I still don’t understand why these Art degree monetarist morons don’t want to increase the rate of their QT to reduce their figure of speech “inflation!”… 🤔

The – Washington Consensus – has been out in full force this week with the US Federal Reserve and the RBA increasing interest rates further despite all the indications that inflation peaked months ago and its downward trajectory has had little if anything to do with the ridiculous interest rate rises since early 2022. Both banks, along with most other central banks, are just thumbing through the New Keynesian textbook to get their direction and pretending to be capable of assessing the...

Russia is taking the gloves off as the US/NATO continues poking into the bear's lair.Global SouthPatrushev: Interview with Isvestia [Important. It explains why the Russian leadership views the conflict in Ukraine and the actions of NATO as actually between the US and Russia over Russia continued existence. Therefore, it is existential for both since this puts the US at risk of destruction also. It can easily lead to WWIII and a strategic nuclear exchange. For example, there have been two...

It’s Wednesday, and we have a few observations on recent events including a music feature. But the main issue in the last 24 hours is the decision by the Reserve Bank of Australia (RBA) to add an 11th interest rate increase at a time when inflation is falling significantly. As I noted last week, the narrative is now shifting among these characters – it is all about inflation not falling ‘fast enough’ and they still claim a wages explosion is likely unless they get inflation down more...

RT — Question More (Russian state-sponsored media)The British are showing signs of goodwill to China, but they aren't the ones calling the shots [Like the French and Germans, the British are calculating the economic cost of decoupling from China. The US apparently hasn't done the math yet.]Timur FomenkoIndia PunchlineWhither Ukraine’s counteroffensive? [MKB argues that apparently some in the US deep state are fed up with the Biden administration's costly foreign policy and military policy...

They’ve had zero or negative rates for like the last 25 years … but watch NOW the Art degree morons are going to say the zero interest rates caused their figure of speech “inflation!”… lock it…Breaking: Tokyo inflation comes at a FILTHY 3.8%, above virtually every single forecast. Core, core inflation hits 41-year high pic.twitter.com/77zvKUQalD— David Ingles (@DavidInglesTV) April 27, 2023

 First Republic Bank was forced into a take over by J.P. Morgan Chase, and was yet another Californian victim of bad banking risk management. My bias was that First Republic was not large enough to worry about, so I cannot offer any insights into the event. My main complaint is that this appears to be another bank that blew itself up with interest rate risk, which makes my life of writing a banking primer more difficult. I had always made allowances for bad bank risk management in the United...

 RADHIKA DESAI: Hi everyone, welcome to this eighth Geopolitical Economy Hour,…. And this will be the fourth and final show on de-dollarization....Video and transcript.Geopolitical Economy ReportDe-dollarization is about more than currencies: As dollar system declines, what comes next?Radhika Desai and Michael HudsonCrossposted at Michael Hudson's blog with the title "The QE Quandry"

Lars Syll expands on a quote of Dirk Ehnts, a German MMT economist.Lars P. Syll’s BlogWhy MMT is neededLars P. Syll | Professor, Malmo University

There is something deeply wrong with the world under Capitalism when the poorest countries in the world pay more out on debt servicing to loans that the wealthy countries have provided than they do on maintaining their health care services. I have been examining data derived from the World Bank WDI database and the IMF WEO database pertaining to the debt sustainability of the poorest nations in the world. Using 2019 data (most recent) 64 nations, for which coherent data is available, spend...