My favorite unintentional comedian

[PHOENIX TRADING]

Quote from jem:

I really would like to use his points against but I am not sure why he believes what he says. He does not really back it up the way a true economist would support his statements with graphs or charts or data.

can you believe it?
he's chief economist of "John Thomas Financial"

Mike Norman is an economist and trader whose career spans over 30 years on Wall Street. He began his career at Merrill Lynch in 1979 then went on to become a member and floor trader on four U.S. futures exchanges (NYFE, NYMEX, COMEX, CME). During the 1980s he built a successful oil brokerage business on the NYMEX. In 1990 he was hired by Credit Suisse to set up a derivatives trading desk for the bank in Geneva, Switzerland, where he lived for ten years. After leaving the bank he established an economic research firm whose clients ultimately included many of the world's major banks and financial institutions. Mr. Norman is a sought after TV commentator and has been seen regularly on CNBC, Bloomberg and Fox News. In 2003 he signed with Fox News as an exclusive Contributor and continues to appear on a regular basis on the Fox Business programs. From 2004-2009, he hosted a radio show on the BizRadio Network, where he discussed economics and policy with well-known guests from business, government and the private sector. Mr. Norman is an expert on fiscal and monetary policy and has created a unique indicator called the Fiscal Liquidity Index that looks at government spending and its impact on the financial markets. The Index is published daily and is carried on the Bloomberg system. Mr. Norman has a BA in economics from the University of Pennsylvania and a Masters from UCLA. He's a frequent guest speaker at various corporate and investment-related events and had the honor of presenting his economic outlook at the Army War College. He ran for NY City Council in 2001.

http://johnthomasbdmikenorman.com/

 

[jem]

about 5 minutes in he tells us its idotic to make the govt collect back the money it gives out before it spends it again.

I agree... income taxes are stupid.

But there is a limit on seigniorage (as norman refers to it)
Seignorage is not unlimited.

Money has a demand function... and when you print too much the money becomes worth less.

When the govt spends too much goods which the world competes for like food and oil would go up..

Also too much printing can be destructive to the assets in real terms as well --- as the players anticipate more and more inflation.

 

[pspr]

Quote from jem:

I really would like to use his points against but I am not sure why he believes what he says. He does not really back it up the way a true economist would support his statements with graphs or charts or data.

He totally ignores the other side of the government money equation. The money the government spends has to come from one of three places.

1. Tax revenue. Even if government could give back 90 cents of every dollar taxed this is just a story of robbing Peter to pay Paul.

2. Borrowing. We have already seen what massive government borrowing does to the nation. It cannot grow forever and when interest rates rise it will bury us in debt service.

3. Print The Money. The obvious eventual consequences are Zimbabwe type inflation/devaluation of the currency.

A country cannot spend it's way to wealth or every country would be wealthy.

 

[jem]

exactly...

but as Norman said... I do thinks its stupid for the govt money back from the private sector via income taxes. Its stupid.
They can just keep the taxes on govt money and spend more.


The more I think about it, the more I see income taxes as purely a function of the govt limiting competition for its preferred cronies.

it becomes a lot tougher to accumulate capital and invest or grow competitors.

I now see income taxes as theft and destruction of our childrens future.

Quote from pspr:

He totally ignores the other side of the government money equation. The money the government spends has to come from one of three places.

1. Tax revenue. Even if government could give back 90 cents of every dollar taxed this is just a story of robbing Peter to pay Paul.

2. Borrowing. We have already seen what massive government borrowing does to the nation. It cannot grow forever and when interest rates rise it will bury us in debt service.

3. Print The Money. The obvious eventual consequences are Zimbabwe type inflation/devaluation of the currency.

A country cannot spend it's way to wealth or every country would be wealthy.