Mickanomics

Imagine you pour some water into a bucket at a rate of one litre per minute... a minute goes by... how much more water is there in the bucket compared to when you started? One litre more? I hear you say. Wrong! I forgot to mention that there was a hole...

Ask yourself this question: When have house prices in the UK ever been higher?
According to the Halifax House Price Index, the only time prices have been higher, as a multiple of average earnings, was just in the run up to the crash of 2007/8. And as you can see from the graph below, we are now on course reach or exceed those levels...

Mark Carney and other central bankers have been trying to persuade us that higher interest rates are coming any moment now - for years!
Not meaning to gloat or anything but, in my book (published July 2011) I did say: After "bursting of any asset bubble"... "Society can get locked in to low rates, painted into a corner."...

Proponents of MMT are fond of arguing that the amount of government debt, i.e. the amount government bonds, that a government creates is not a problem. I have to take issue with this idea. The problem is that the interest on government bonds is paid...