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So many people focus on the Fed's balance sheet, causing them to draw spurious or more often, wrong conclusions about its meaning. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/
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So many people focus on the Fed's balance sheet, causing them to draw spurious or more often, wrong conclusions about its meaning. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/
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| So many people focus on the Fed's balance sheet, causing them to draw spurious or more often, wrong conclusions about its meaning. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ |
Mike, So we shouldn't look for you in Times Square? What would happen if Treasury's credit quality drops or is downgraded to BB or non-investment grade?
I went to the Times Square ball drop once, in 1976. And it was crazy. Not like the penned-in crowd control sanitized version today.
The downgrade topic is a good topic. I will do a video about it.
@Mike Norman MMT Economics Those were the Cocaine Cowboy days Mikey – I know what you were up to lol Enjoy New Years morning.
Yep new years eve is overrated, ill be in bed fast asleep while the firecrackers are going off.
Amen brotha
Mike, I liked that commentary. You make more sense then any of those bone heads on CNBC. They missed out from hiring you. God bless. Happy New Year.
The bloodletting analogy also reminds me of the fed’s beliefs about interest rates.
Yes
What does it mean to say “the Feds balance sheet is going up”? Does that mean money printing? Issuing bonds?
They are buying bonds and mortgage back securities MBS in the secondary markets, NOT buying these directly from the Treasury. These are some of the types of "assets" that go on the Feds balance sheet. When the Fed "tapers" their balance sheet they sell those "interest generating" assets back into the regular economy.
@bpprovit thanks for explaining. So when the Fed buys these assets on the secondary market, does that mean they are putting money into the economy or taking it out? Having trouble visualizing it… if they are buying MBS then they are paying with money thus injecting money into the economy right? So this is temporarily inflationary?
@ukulayme2 they are swapping one "asset" for another, in other words they are trading federal reserve notes (US Dollars) for Treasury Bonds and MBS. So it is basically swapping like for like. The only exception are the Treasuries and the MBS are assests that have a coupon or are interest bearing. As far as MMT (also known as MMO "Modern Monetary Operations") goes this is considered an exchange like for like and thus not causing inflation. As Mike has explained the Fed is actually purchasing an "interest generating asset" such as the Treasury Bonds to support the economy during tough times. When they sell these assets back into the market this is actually stimulative to the economy because now these are generating interest in the public markets. The inflationary effect is caused by supply chain problems and the direct cash given to the general public. But QE is an asset swap so it is not direct stimulation of the economy but is considered economic support, because the Fed is the buyer of last resort.
this market is 100% rigged look at the action it’s nuts and congress are cashing in on it for sure
Dilution of Value of our hard earned dollars. Inflation screws who? The 99% of the people who do real work in the world. 2009 Fed balance sheet goes from $875B to 2016 $4.5T and now +$8.5T … The Devaluation of our money, work, time and our lives is Pure Evil. Artificial Wealth Creation and Crony Capitalism is Thievery of the worse kind. If you don't understand this then you are missing a few screws. Inflation is killing the purchasing power of your dollars. And this is OK with you?
Standing around for 5 hours and trying to wait in line to take a crap or piss in a nasty portapotty is for the uninitiated.
Always insightful
Happy New Year!! Keep up the good work.
Thanks Mike. I was told by a very successful trader that if you dig through all the BS, look past all the headlines and news media and really dig for information, you’ll find information that will put you at a huge advantage against the general public and headline readers when it comes to the markets and your channel is a piece of that puzzle and glad I found it. I really appreciate that you put this information out for free and don’t pay wall it. You are one of the few that gives real talk and no BS scam crap. Cheers to a successful 2022 🍻
Mike thanks for what you do man educating people on mmt is very very important.
Yes Mike is back! Love the impressions of Jim Rogers he does