General theory and special cases in Modern Monetary Theory
Tag Archives: Mike Norman
We WON!!! MMT got everything right…EVERYTHING!!!
Juncker on the euro crisis
Juncker has to know better than this, he can’t be that sheltered?
From Mike Norman’s blog
“The debt level of the USA is disastrous,” Mr. Juncker said. “The real problem is that no one can explain well why the euro zone is in the epicenter of a global financial challenge at a moment, at which the fundamental indicators of the euro zone are substantially better than those of the U.S. or Japanese economy.”
Mike Norman!
Mike Norman on Kotlikoff’s fear mongering
Mike Norman on Fox
Very well done by Mike Norman who’s on this email list.
This video makes it all the more obvious that Fox is on a propaganda mission, at best to support ratings, at worst to be subversive, rather than engaging with Mike on the facts.
You tube link:
Mike Norman on Fox
Interview with Mike Norman
The stupidity of this statement: “Huge supply coming…”
Mike Norman Economics
The stupidity of this comment: “Bond market facing huge supply.”
Week after week after week, you hear these TV commentators or other “know-nothing” economists and analysts talk about the “huge supply” of new Treasuries that is coming and how that is going to cause interest rates to spike up.
One quick glance at the Treasury’s Daily Statement will show you that so far this fiscal year…the Treasury has sold
$7.4 Trillion
of securities and interest rates are
Zero!
We’re talking nine months, here, and nearly $8 trillion worth of sales and rates have done nothing but go down. And by the way…that’s on top of the
$5.6 trillion they sold last year!
And…you guessed it…rates
have come down!!
When will these ninnies wake up???
The money to buy Treasuries comes from government spending itself and the monetary operations of the Fed! The added reserve balances that come about as a result of government spending or the Fed buying securities (to reduce interest rates) are merely swapped for an interest bearing account of the U.S. Government known as a Treasury. And the government pays interest on those Treasuries the same way it pays for everything else…by crediting bank accounts.
Please pass this along!
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Obama at All Star Game: “We’re out of money”
Agreed
And worse, it may mean we don’t get a decent health care program but continue with what we have that is driving doctors and other practitioners out of the field in droves.
With 10% unemployment we can afford just about anything and everything before we run out of available resources!
(Only available energy is currently limited on several levels.)
Mike Norman Economics
Obama at the All Star Game: “We’re out of money.”
Was just watching Obama chit-chatting with announcers Tim McCarver and Joe Buck at the All Star Game. When Joe Buck asked Obama if there would be any “bailout” for the National League, which hasn’t won in 11 years, Obama replied, “We’re out of money.” Although it was meant as a joke, it’s what he believes when it comes to the government’s finances.
This is a very misguided point of view. It effectively is like putting America on a gold standard when we are not on one. And it is the reason behind his new and misguided policy of taxing millionaires to pay for his health care plan. With very little demand in the economy right now, applying fiscal drag in the form of tax–on anybody–is really, really, dumb.
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Trading adds nothing to the real economy
Darn, you’re good!!!
Going on my blog.
Part of what it does is transfer funds from pension funds and the like to Goldman employees which adds some to aggregate demand.
What a way to run an economy!
:(
Mike Norman Economics
Goldman profit soars on strong trading gains
Who cares?
Trading adds nothing to the real economy. You have incredibly smart people working at Goldman who merely speculate for a living: buy something then flip it for a profit.
The economy would be better served if people like these worked in more productive sectors–science, industry, health care, alternative energy, etc.
Goldman might have failed if the Federal Government did not help it during the worst days of the financial crisis. Morgan Stanley certainly would have failed.
The fact that our leaders chose to sustain the non-bank intermediaries like Goldman is a testament Wall Street’s power and influence.
We don’t need them. They add too much volatility and risk to the financial system without any concomitant benefit.
All this country needs is a commercial banking system backed by the Gov’t. We had that in the past and it worked fine. Banks originated loans, serviced them and bankers made a little more than civil servants. People bought houses and cars and businesses were able to get money to expand and grow. Same as now, except without all the risk and speculation.
A nation’s power has nothing to do with having a vast, unregulated. financial sector, yet we continue to think so. President Obama is more under the spell of Wall Street than Bush ever was and for that matter, Obama is probably the most pro-Wall Street president in recent memory. Odd, when you think he ran on a platform of helping the working class.
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