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Worries about Georgia elections, Covid and more, but fiscal flows will sustain the move higher.
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Worries about Georgia elections, Covid and more, but fiscal flows will sustain the move higher.
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Mike Norman considers the following as important:
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| Worries about Georgia elections, Covid and more, but fiscal flows will sustain the move higher. |
We appreciate you michael
great haircut Mike , thanks for sharing your wisdom with us
What's your opinion about palantir?
Mike – Thank You, Man – Love these videos… ✌✌✌
Happy New Year Sir.
Been Following you for more than 5 years.
Dear Michael. Many shallow thinkers who are fans of yours, who also bother to read my posts most probably regard me as a 'troll'. That makes me giggle. I'm as real as it gets and I just like to ask those self appointed experts the really tough questions. For instance, is it correct to assume, as you claim here, that a given grubberment running a surplus automatically acts as a 'net drain on income and savings', to use your expression. I would argue no! Because simultaneously to a budget surplus in a given economy, credit expansion may also have gone through the roof in that same fiscal year. You are making out as though our economies in the West are centrally planned (ie Communist), that is to say, that ONLY the grubberment has the power to 'create' money. However, this is patently untrue, or has been until now at least. Until you satisfactorily address this issue, ie that commercial banks ALSO have the power to create money by issuing credit, then your claims about a simple equation, namely that a grubberment running a surplus is automatically 'a net drain on income and savings' is demonstrably unfounded.
What about if you just looked at the US balance of trade and see US imports rising, I think that's a bullish sign and it also means that the US is trading at a deficit, deficits are bullish yer?
One thing that confuses me about the dotcom bubble was that the US balance of trade was still going at a deficit at the time and deficits are bullish so yer I don't know a bit confused on that one
Dear Michael. Why QE IS money printing!
1) Most economists acknowledge it as money printing, it's usually those on the fringes that claim it's not.
2)MMT claims neither taxes, nor the selling of government bonds fund government spending. Rather, both are used in order to regulate the amount of liquidity in the financial system and thereby reduce the risk of runaway inflation.
3) Taking point (2) to its logical conclusion ,must mean that governments simply digitally create money as they go. I don't know about the US system, but I know her in OZ our Feds have an account at our reserve bank called the "Official Public Account' https://www.rba.gov.au/fin-services/banking.html so the immediate question that arises is, if as you claim Govts are simply electronically crediting an account with money AS THEY SPEND ie making it up as they go along, why on earth would they need the OPA facility. Surely it would be redundant.
4) Taking point (2) to its logical conclusion, a central bank increasing its balance sheet IS money printing. Firstly because, in addition to Govt bonds, it is ALSO buying up all sorts of other dodgy assets like 'AAA' rated mortgage backed securities (remember those toxic little beauties and the immense damage they caused) which DON'T have to be 'paid back', with a deft little accounting/ book keeping manouevre when they 'mature' like govt bonds. Further, consider again per MMT the selling of govt bonds regulate inflation they DON'T FUND govt spending. Logically this MUST MEAN, the trillions in capital that institutions, countries, high net worth individuals etc use to buy govt bonds HAS BEEN EFFECTIVELY REMOVED FROM CIRCULATION UNTIL MATURITY in exchange for a paltry coupon rate. Then along comes the Fed creates the trillions again and puts it BACK INTO CIRCULATION BY BUYING THOSE BONDS BACK IN THE SECONDARY MARKET. So until maturity which IN THE CASE OF 10 YRS THAT'S 10 LONG YRS THAT MONEY IS CIRCULATING AGAIN. And those high net worth individuals/ countries/ Institutions now have that money back to spend /invest thereby stimulating economic growth. In fact in the case of commercial banks, as you know, their bonds are exchanged for reserves which they can then lend against which adds a further multiplying effect of money creation given their ability to hold 10% in reserve and create the rest when they make loans!
So you see Michael, a lot of what you say really doesnt holds up to closer scrutiny! This is the point many of your detractors are making albeit it all in their own funny ways.
Mike I have much time on my hands and another point to make. Remember the market's 'taper tantrum' circa 2013 (from memory). Remember Jay Jay's "QT and interest rate RISES" are on "Auto pilot" circa Sep 2018. Now, do u remember the hissy fits Wall St had, (circa 20% from memory into XMAS 2018) as a DIRECT RESULT OF JAY JAY JUST THREATENING TO TAKE AWAY THE PUNCHBOWL! Remember how the SP500 V shaped recovered to NEW ALL TIME HIGHS after Jay Jay come out in early 2019 and capitulated to Wall St by saying both QT and higher rates were now OFF the table! Surely youve asked yourself WHY?? Come on mate, ALL THE ANECDOTAL EVIDENCE points to the Fed's never ending free money punchbowl being the cause of this mess! I honestly cant believe anyone would deny it, even if it endangers the trading system they sell.
Hi Michael. Beginning 2020 analysts were expecting $180 earnings for SP500 then trading at circa 3350. So on a projected PE of 18.6.
Today consensus earnings for SP500 sit at circa $120 SO THEY'VE COLLPASED BY A THIRD! AT EXACTLY THE SAME TIME THAT SP500 HAS SHOT UP 12% TO 3750. So now trading on a PE of a WHOPPING 31.25. So earnings COLLAPSE A THIRD and PRICE INCREASES 12%! And u cant see something is wrong with that picture Mike?? That's not a bubble??
Mike I don't do Bitcoin (to my great loss) or Gold! But I do, do real estate and have done for 23 yrs. Gold may have been their means of exchange, but land/ real estate has ALWAYS been the wealth of Kings. In fact medieval Europe's entire feudal system economy was based around Real Estate! So measured against real wealth, ie real estate, the dollar has already been debased! Trashed! Here in Melbourne average houses have gone from 5 times average incomes to well over 12 times average incomes in the 23 yrs Ive been involved. While this may have benefitted me, I can see how unfair it is for young bloke just starting out trying to get a foot in the door of the RE ladder which is next to impossible for them. Not to mention the ridiculous prices stop me from adding to my portfolio. And if u look it up for yourself, now in the midst of this disgusting pandemic our RE PRICES ARE ACTUALLY RISING! This insanity, a direct result of GLOBAL central bank intervention/liquidity HAS REACHED PEAK STUPID. Actually cheaper NOT more expensive asset prices are BETTER FOR ALL CONCERNED! And u sitting there daily trying to justify peak stupid is total nonsense!
13 trillion in world wide bonds have to be rolled over soon.
correction 45 trillion to cover 280 billion in lost wages due to covid total waste fraud theft by fed and gubbamant.
you're awesome dude – don't let subscriptions get you down (saw your vid about the guy who cancelled)
And for only $500 a month you can "contribute to GDP."
in the meantime nobody wants to acknowledge want will happen on Jan 6th…. Why would so many congress people side by Trump ? May be they suddenly got some intelligence we don't have…
If you"re making money with trading, why you charging huge fees for mmt
He just told you, you dope!
Its valuable. Its his life's work, why should he give it away?
@adhd trader not giving it away fo free, but at least a public price
@Yazid El Alaoui perhaps if it was $250/month, it would not be as manageable for Mike as there would be a lot of subscribers. But I know what you are saying.
Very happy New Year Mike! And you look really good!
They are printing money
I've been in the membership since it was $147/mo. Mike's MMT report, plus the gem of the DTS video, plus the mental game, such as the lessons on this video towards the end. Great one Mike! Been awesome being able to absorb from your valuable coaching during these years. Thank you!!