by Summary:
Answer to a question someone asked.
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Answer to a question someone asked.
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Matias Vernengo writes Milei’s Psycho Shock Therapy
Bill Haskell writes Population Growth Outcomes
Robert Vienneau writes Books After Marx
Joel Eissenberg writes Undocumented labor: solutions, not scapegoating
| Answer to a question someone asked. |
It was a blizzard here in southern New England! Got almost 3 feet of snow!
Appreciate the clarification. It seems like we could go either way depending on how Congress acts. There are bills still pending like the CHIPS act and BBB. Also, the budget is still pending.
I wonder how much Elon Musk’s large stock sales last year are affecting this as well. He had something like an $11b tax bill.
One thing that could throw another wrench into the mix is the resumption of student loan payments.
Mikey – I like running too, but I just CANNOT do it in the winter up here in Canada. Too hard on the lungs man. Keep it up!
Yes, you can run in New York. It's not that cold, compared to Toronto.
@បេះដូង It feels like -11°F in Toronto…only solution here is cold shower -> sauna -> repeat
@Mike Norman MMT Economics cold showers no f-ing dude you're nuts f that
@trent jenkins My uncle was into cold showers. He didn't live long and died of heart attack when he was a little over 60. When you get old, you need to listen to your body.
@បេះដូង cold showers might have been completely unrelated…
You’re the man Mike! Always love hearing your knowledge and expertise.
These are my thoughts on the downturn,1)After 2 years of QE,banks capital requirements are sucked down where as the available market of creditworthy borrowers diminished, so rate hikes would not suffice credit expansion 2)Dollar will be strong and expected to be strong so there will be little inflow on exports 3)Energy prices are increasing and set by cartel 4)Inventory expansion is high contributor to growth and once sudden supply chain problems dissipate there will be layoffs in those sectors .So we will be looking at very sharp very unexpected downturn in U.S economy if the fiscal drag continues.
why does gov have to spend first. doesn't banks making loans create currency?
If they loan you "new currency" that means you have to pay it back with interest right?
Let's start from the beginning. If the government doesn't spend first, how does the bank know you're good for a loan? The government always spends first so the bank knows your work history (are you reliable to pay back loan) , income (how much of a loan can you afford to pay back), credit score (do you know how to manage your money). That's all for now.
Bank loans create bank deposits. The government doesn't take bank deposits in payment of taxes. It only takes central bank deposits. So your bank has to convert the bank deposit into a central bank deposit to settle your tax bill. If there are no central bank deposits available (because government hasn't issued any yet) then it can't do that.
Awesome video, Mike – Thank You, as always… 👊👊👊
You mentioned last time we had a budget surplus was when Bill Clinton was in office, but didn't the stock market go up during that period?
Yes it did because the private debt was increasing. But then the markets popped in 2001 after which the zero rate era ensued.
We had the NAS crash and then recession, I think we have had a downturn after every surplus in the nation's history.
@Dave Duerre , exactly!: Permanent surpluses guarantee a recession/depression. Rewinding further back into the history: The US paid back national debt in the 1830's and the economy collapsed in 1837 ("Panic of 1837"). Repeating the stupidity pres Coolidge turned the budget into surplus in the 1920's which boosted the private debt bubble that then famously popped in 1929. You can find this info from Steve Keen's new book: "The New Economics", page 58.
@Jari Rutanen The internet bubble popped and in 2001 we had 9/11 attacks. Nothing to do with budget surplus
Nice double switch Mike
Mike what's the best book on the subject of MMT ?
Hi Mike, what is your view on the current levels of the stock market, particularly in the US? Is is true that the Fed does not have that many tools left? The Fed would effectively bail the market out with either a rate cut or most recently injecting liquidity. Bernanke needed help from the Treasury/government spending. Now there is a much higher ratio of debt to gdp, there is much more debt on the balance sheet of the Fed and also lower rates.
You know what you could substitute running with? Jumping rope.