Mike Norman Economics

Many electrons have been inconvenienced over this topic, and most have been in vain. I’ve wondered all week whether I had anything meaningful to add. However, a few points that have emerged in discussions are worth highlighting....New WaylandThe Accursed Tariffs NeilW

So imminently employers of  millions of illegals are gonna be submitting their FICA tax reports containing those now DOGE deleted 9M SSNs and IRS is gonna immediately flip that information over to ICE for immigration raids probably to the largest offenders first…Could be a mass firing event which probably won’t show up in UE claims because the current employees are illegal… maybe job openings will spike up … while UE rate appears constant…So Art degree Fed morons will interpret that as...

 I am a bit late with this. I have been jammed this week and just got to. It's an explanation of the Trump tariffs. It's the brain child of Stephen Miran, chair of the Council of Economic Advisors. Miran lays it out in  A User’s Guide to Restructuring the Global Trading System. Simplicius summarizes it briefly.Bill Mitchell deals with this from the MMT point of view in today's post, which I linked to earlier.Simplicius the ThinkerTrump's "Liberation Day": Another PR Gag, or Global...

 Last week, the US President honoured his election promise, indeed his long-held commitment, to increase tariffs on imported goods and services to the US. The formula they came up to differentiate between countries was bizarre but I don’t intend commenting on that here, except to say, the imposition of tariffs on the – Heard Island and McDonald Islands – which are an ‘Australian external territory’ that is a ‘a volcanic group of mostly barren Antarctic islands, about two-thirds of the way...

A recent UnHerd article warns of a “crypto time bomb,” suggesting that stablecoins could become a geopolitical tool to undermine the U.S. economy by redirecting foreign dollar reserves into U.S. Treasuries. The core assumption is that countries like Japan are sitting on idle piles of dollars, waiting for a stablecoin intermediary to put them to use.This misreads how international finance operates. Like other major dollar holders, Japan doesn’t need help managing reserves. Dollars earned from...

If these numbers represent illegal alien people currently working using other dead peoples ID numbers, when the payroll taxes are paid this week and 7M fraud notices go out to the employers it could turn out Elon actually threw 7 million people out of their jobs this week … it could create a mass firing event of 7 million people who are currently working (albeit illegally but nevertheless) in the economy, …. causing a collapse in output and a collapse in tax receipts going forward…Mike will...

 For the record. From an Austrian economist.AbstractThis paper analyzes the debt monetization proposals of Modern Monetary Theory from an Austrian structure of production perspective. It shows that this policy raises societal time preferences and reduces the number of higher order stages in the economy, leading to a higher interest rate, lower economic growth, and increased prices of consumer goods. In order to demonstrate this, it goes back to the basics and investigates the nature of...

Pass it on.MMT101.ORG - Learn Modern Monetary Theory (MMT)An Explanation Of Why Taxes Don’t Fund Spending—And Why Elon Musk Is Wrong About The US Government DeficitJim Byrne - MMT101.ORG

TGA down at 450b area now … So let’s assume they keep screwing around and eventually bottom it out at 50b leaving the current threat at 400b reserves in TGA that could be forced upon the banking system … To cover that 400b, banks would need at least 1/10th of that in capital for SLR of 0.1 … (might be a bit less) but we’ll be conservative … 1/10th is 40b… so eg if banks were given 40b of additional free capital right now,  then they could cover those additional 400b reserve assets without...

It’s been over ten years since the Bank of England published Money creation in the modern economy, yet despite that, I run into people daily parroting untruths about how banking works. As part of the update to the UK Accounting Model, we will enhance the banking chapter to cover how lending institutions work and highlight some of the intriguing artefacts that a proper understanding reveals....New WaylandThe Loan Lock ParadoxNeilW