Links 14 March 2019

Global Macro / Markets / Investing:

Americas:

Europe:

Asia:

Trans-Tasman:

Comments

  1. Rich parents bribing Yale and Stanford to let their kids in!

    The same happens in AUS with foreign “students”. They bribe Aussie professors to get what they do not deserve.

  2. What happened to “https://www.macrobusiness.com.au/2019/03/the-lunatic-rba-is-not-crazy-enough/”? Did someone with half a brain cell dedicated to economic sense decide to pull the article before the morning rush of readers discovered who the real lunatic is?

      • This attack on MMT by non-resident Brookings scholar Warwick J. McKibbin is one-sided and void of real arguments. Citing hyperinflation Weimar Germany is scare tactics, especially when “everybody” agrees inflation is not a problem today https://brook.gs/2Hfn7EL via @BrookingsInst

        https://twitter.com/finstab/status/1105563462024024065

        Nice summary of #MMT. Silly title – Gov payments in excess of taxation is not overspending when it serves the public sans accelerating inflation. Kudos to @StephanieKelton @ptcherneva @rohangrey @RaulACarrillo @wbmosler @billy_blog

        https://twitter.com/gladkiwi/status/1105670725338365955

        Might be something to do with having an untenable prioris e.g. were on a gold standard.

      • “everybody” agrees inflation is not a problem today ”
        That is simply a falsehood. “Inflation” is a problem. It’s just an issue of what is included and what is not.
        Second and more important

        The common understanding of inflation is not regarded as a problem if we are looking at a short time horizon and Current Account Deficits and Foreign debt are NEVER a problem…and, well, if they are it will be a problem for our kids and who gives a rat’s ar$e about them eh!!!!

      • https://thehill.com/opinion/finance/433658-setting-the-record-straight-on-gnd-and-modern-monetary-theory?amp&__twitter_impression=true

        I don’t agree with MMT entirely but those attacking it with Weimar/Zimbabwe/Venezuela etc not one country has implemented MMT , hyperinflation is always mostly due to large external debits in a foreign currency and even if one country implemented MMT and got high inflation doesn’t mean it’s wrong anymore than a collapse in a conventional capitalist country means capitalism is wrong.

      • House prices, electricity prices, rents, healhcare costs, etc all skyrocketed the last few years. No inflation to be seen anywhere.

        Everybody agrees…lol.

      • Zulu …

        I think you miss the point that MMT is the system – used – for quite a long time, its not a suggestion of implementing it. Now some become confused about the ad hoc nature with hangovers from the gold standard, but, that’s a political quandary and not one intrinsic to MMT.

        Flawse …

        Wages and productivity diverged in the 70s, Plaza unleashed capital flows, lowering of credit underwriting and investor demand for securitization, bonus culture = stock buy backs, the let them eat equities meme, etc …. yet your think this is a QTM problem …. sigh ….

      • drsmithyMEMBER

        House prices, electricity prices, rents, healhcare costs, etc all skyrocketed the last few years. No inflation to be seen anywhere.

        But the question is are these the result of MMT (ie: “money printing”), or are they result of monopolies, collusion, supply constraints (real or artificial), etc.

  3. Aw, the Lunatic RBA Not Crazy Enough piece got unpublished?

    The comments on that were going to be epic!

    • “We would like to be in a co-operative relationship with our regulator.” lol, bring on those cooperative relations.

    • It is amazing how quickly the electorate has forgotten NSW Labor’s modus operandi.
      The Liberals are far from perfect but they have been doing an OK job in NSW and certainly far more than Labor did in their decade-plus of zero infrastructure (apart from the Olympics, hooray) and degeneration into general corrupt looting of the public purse.

  4. Another great selection of Links. So great to be able to come and get a wide selection of views and rally serious analysis of economics and business topics.

    • According to a few boomers I know that was luxury compared to what they went through.
      (Often think my Dad mistakes the tales he heard about the depression for his own experiences.)

    • Before engaging with the content of the article I just want to point out that the author (Katri Uibu) was last week accused of writing a puff piece about difficulty of obtaining refinance wherein the person featured was NOT disclosed as a Real Estate Agent. Definitely misleading by omission.

      This curious article about living in a shed is an odd form of human interest story masking yet another real estate trope – the one that says “all you need to do is sacrifice a little to afford your first step on the property ladder”.

  5. https://www.scmp.com/news/china/diplomacy/article/3001580/european-union-calls-united-trade-and-tech-front-against-rival

    This is good news, hopefully, I had been worried those naive Europeans would just let China steamroller them & all the values we value. Though I suspect China will do a good job splitting off some of the smaller countries & Italy with sweeteners so wouldn’t be surprised it is watered down to the point of being unless as Europe loses it’s grip on world trade rules etc

    Though obviously not everyone is happy with their new emperor.
    https://amp.scmp.com/news/china/politics/article/3001377/why-there-more-dissent-inside-beijings-legislative-two-sessions?__twitter_impression=true

  6. It is easy to forget how unlike us the yanks really are in so many ways. Could you imagine the uproar if the PM got involved in making or approving CASA decisions. Sure, Boeing is a major political and commercial weapon for the US but whether or not the Max 8 planes should be in the air obviously is best left to the experts at FAA.

    “But President Donald Trump, who announced the grounding, was briefed Wednesday on new developments by Elwell and Transportation Secretary Elaine Chao, and they determined the planes should be grounded, the White House said. ”

    https://apnews.com/582d4da75deb4bcdac7472b1ccdd5a12