Mike Norman Economics

Stock market goes up Trump takes full credit: The DOW, S&P 500, and NASDAQ all close the week at a new record high! pic.twitter.com/wPJiM8n7m2 — Donald J. Trump (@realDonaldTrump) July 12, 2019 Stock market goes down Trump blames the Fed!WINNING!!!!

In quantum physics two molecules can become entangled and then behave as a pair no matter how far apart they are separated. If two die become entangled it might mean that every time they are thrown their combined number always comes to 7. So, if one's a 5 the other will be 2, etc. If they are separated across the universe they will still always equal 7 no matter how often you throw the dice, but how can they communicate with each other at instant speeds, and infinitely faster than the speed...

The Bolivian government has nationalized its country's resources and key industries, but you can bet in the rest of the economy people are working hard, starting their own businesses, and doing some excellent capitalism. Except now their hard work is really paying off, and is not being syphoned off by the elite and their western backers. According to the leader, in the past, the different international organizations used to treat Bolivia as a "colony," deciding the future of the people...

Live right now. It doesn't look like this is going to end soon, but the MSM hardly reports on it. But what is it was in Hong Kong or Venezuela? [embedded content]

How dare they. There are shareholders to consider Our Western neoliberal governments are owned by the elites, for sure, but they are still cash strapped and need some revenue, and their electorate are fed up with the tax evaders with their off-shore tax havens.France and Britain are designing new tax systems that will hit the Silicon Valley hi-tech giants, like Google and Amazon, and the US is fighting back by threatening sanctions.Sanctions here, sanctions there, sanctions...

Weekend reading. What ideology guides the star of rising Chinese power? General Secretary Xi Jinping’s answer to this question is unequivocal: “Socialism with Chinese characteristics is socialism, not any other ‘ism.’” Xi is adamant that his Party adheres to what he calls the “lofty ideals of communism.” But what exactly do those ideals mean in 21st century China? What does Marx have to do with Zhongnanhai? Of late, this question has much vexed the Communist Party of China. Over the last...

While the equation fits relatively well, clearly it’s not perfect. As of 2019Q2 (first two months), year-on-year PCE inflation is underpredicted by 40 bps. I estimated the equation on a restricted sample ending in 2014; this imparts only a marginal difference — so it’s not that something has changed substantially over the last 4 and a half years. Rather the specification could be improved. In other words, perhaps a different measure of NAIRU, or a nonlinearity might improve the fit....

A new quarterly report from logistics company DHL, measured global air and sea cargo trade volumes between March and June, found trade data continues to deteriorate in the US and China as there is still no resolution to end the trade war, reported South China Morning Post(SCMP). Chinese imports were "losing significant momentum," the report stated, indicating the epicenter of the slowdown was situated in basic raw materials, capital equipment and machinery, and consumer fashion goods. The...

Backgrounder. China is much different from the USSR, and the later should not be used as a measure. While the developed countries have largely flatlined, with GDP tracking population growth, China still has a lot of room to grow even though its population has stabilized.Conversable EconomistChina's Changing Relationship with the World EconomyTimothy Taylor | Managing editor of the Journal of Economic Perspectives, based at Macalester College in St. Paul, Minnesota

Watch the debt ceiling developments.