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ECB and BoJ are doing the same thing, even bigger, but no inflation, and critics are silent in these cases. You have to be consistent. 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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ECB and BoJ are doing the same thing, even bigger, but no inflation, and critics are silent in these cases. You have to be consistent. 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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| ECB and BoJ are doing the same thing, even bigger, but no inflation, and critics are silent in these cases. You have to be consistent. 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/ |
Inflation is there because nobody is working. The printed money all end up in the pockets of the 1 percenters AKA Tesla, Apple, Facebook, Amazon, Google, Microsoft stocks and real estate.
Weak take.
Thank you Joe Biden for blessing us with this incoherent comment.
Keep grasping at straws. You'll surely find an excuse to remain a LOLbertarian 😉
Loads of people are working, hardly any money is printed or minted. Much money creation goes to the few who save/invest it in assets but not on main street.
Where there is real world inflation, much of it is where supply chains are disrupted by covid and labour/worker shirtages/disruption.
True. Listen to Michael Burry and Jeremy Siegel.
Repos are just temporary. They are just deferring the issue.
First of all, I don't live in Japan. I don't live in Europe. Those people there need to fight their own battles. People here are fighting our battles. It's already known how expensive it is to live in Japan. There's no wage growth.. no increase in productivity… the Japan of today is not what it was like in the 80s. You have kids that have to wear costumes to work in coffee shops. People are slaves to their companies. But look at the cost of food, housing, and transportation in Japan relative to their earnings or our earnings if you care. So using central bank inflation metrics is moot.
Second, speaking of consistency. If you say all we have to do is listen to the Fed and they'll tell us what they want and are going to do why wouldn't that apply to everything? If they say they want to increase interest rates because there's not enough of slack in the employment market, why wouldn't it not be different if they ACTUALLY tell you that they want higher inflation and are going to let it rise until it meets some ridiculous average over years??? And they tell you that the inflation rise is transitory… that the rate of change in inflation will be transitory but will stabilize to some rate that they're comfortable with.
I just talked to our building maintenance guy that came back from Europe and all he was talking about is how high inflation has become over there. So you can't just pick and choose what you want to hear. You want money…. and can make money on this inflation narrative… about money flows… then do it. We all should. But don't try to pass of some bs when the Fed is actually TELLING YOU they targeting inflation rates.
Please help clarify…. Where did the approx 35% increase in monetary supply (last couple years) come from, just more bank lending?
Bank credit and deficit spending. The Fed does not spend money into existence…only the sovereign can do that.
@Nicholas Gomez when gov deficit spends doesn’t it first need to borrow? Would this not pull money out of the system just to be spent back? This would not increase money supply … right?
@Mike Heayn , the banks and govs do not borrow money: Budget deficits create treasury savings and bank credit creates bank deposits. A plain english explanation in Stephanie Kelton's book: "The deficit myth".
@Jari Rutanen doesn’t the treasury need to tax or sell a bond , before it can spend? Is a bond not a loan? I thought The deficit is the amount of outstanding bonds that need to be repaid.
Can banks use reserves to purchase bonds from treasury?
If banks need more paper currency , can they use reserves to get it?
They just create it, which is completely illegal, The fed is as federal as federal Express, get it ? Complete corruption
Hello Mike, I find your videos to be very educational. Could you spend some time to explain if there are ANY negative consequences of QE? I mean, if creating a strong economy and prosperity is straightforward as QE, why can’t any government just do it and in a much much larger scale?
Assets appreciation, economic inequality, richer gets richer, if you dont own, you are fk’d. QE is positive for markets but not the necessarily for the little people.
"Printing Money" the fugazi of all fugazis!!! Mike, I always look forward to you saying "printing money" in your sheeple voice ??
Not only does the Fed buying treasuries enable additional government spending (which increases prices), the additional liquidity at banks enables more lending/speculation, which increases asset prices.
The fed does not fund the govt. Treasuries are sold on the open market when first issued by the treasury, commercial banks globally just buy alot…it's how they get them in the first place. Fun fact, your bank account is used to buy govt debt….if only everyone knew that there would be a bank run.
@Golden Scholar For sure. I left that out for brevity. The whole shell game just adds insult to injury.
That's true, I don't hear about the same inflation concerns in either Japan & Europe, both of which are pursuing similar strategies. Could demographic considerations, lower birth rates & consequently reduced populations, be a factor?
Stop Mike…
The Fed allows the wealthiest people to make more money.
Their interest rate policy is CRIMINAL
END the Fed – they should be lined up against the wall
You da man mike!!
Can of Lysol: $7 dollars.
Mike, yesterday you said that the Fed is handling the situation "adeptly", if it's intending to increase the interest rate to control inflation. Today you said that rates don't matter.
You've always said that the rate is reflected in the cost of credit, which is reflected in all goods and services. If the rate is increased, then prices will increase (ie inflation). I'm not saying you're wrong one way or the other, but I'd really like some clarification. Do increased rates help control inflation and, if so, how?
I think he said rates don’t matter for stock prices/overall economic performance (GDP).
A sudden increase in the money supply by definition, is inflating the currency. If you are talking about inflation in regards to the consumer price index, property etc, USA will find out in next 6 months to a year.
Nobody seems to understand this. Prices going up is a symptom of inflation not inflation itself. The fact that the fed MUST continue with these unorthodox decisions should be proof the system is broken.
Be well folks!! God bless.
Damn Mike, i can't deny that you made a hell of a point on this one. Everyone has to deal with that now. I don't know how to deal with it, that was heavy man. ?
Mike don’t forget their change of position of how the west is in so much debt and how we ‘borrow’ money but in the next breath the west are printing money. I wish they’d find a position and stick with it if they are that adamant that they know the facts and say that MMT is ‘garbage’. Maybe they have amnesia and forget what they said 2 minutes prior to ‘we’re printing money’, ‘we borrow money from China’, ‘China are bad’ etc. If you were a creditor and someone was bad mouthing you you’d stop helping them out but the western elite don’t get this and that China don’t lend dollars to the US as you point out in other videos. I’m can’t bear to listen to the mainstream news either financial or otherwise now as it’s all doom and gloom and that the world is ending when we need some common sense and truth. Keep it up Mike
Hey Mike,
On the bearish side there is still the reduction on fiscal flows and it's impact on profits (nike is an example) and the debt ceiling.
Love the Ad-hoc excuses they use to justify no inflation on Japan after 20 years at 0% rates.
Thanks for the honesty.
Wonder what is driving up people’s rent and crashing people’s dream of owning home?
Hey Mike. I’m so glad your still around and doing your thing. You and I worked together on Wall St briefly. I was a Junior broker at the firm we worked at and I just passed my Series 7 at the time when you was our economist. I’ve left NY and live in AZ now, for the past 10 years. Glad to see you’re on YouTube. You got a new subscriber.