Daily Archives: September 14, 2012

Alan Grayson’s Right; But He Misses the Larger Point

By Joe Firestone

Alan Grayson’s e-mail on Moody’s warning that it might reduce the US’s AAA rating, suggested that Moody’s was either threatening a downgrade because it wants to get the Bush tax cuts for the rich extended, or, alternatively, that “Moody’s is living in what Aristophanes called “Cloud Cuckoo Land.”” He says this because Moody’s is upset about the possibility that the US may go over the so-called “fiscal cliff,” even though if it did, it would theoretically result in $560 Billion of deficit reduction annually, without further legislative changes, and it makes no sense on the surface for a ratings agency to think that the risk of US bond default is greater when the annual deficit is being reduced by $560 B per year, than by some lesser amount, which is likely to happen if Congress doesn’t take us over that “cliff.”

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Modern Money and Public Purpose

Randall Wray and Michael Hudson both presented at the inaugural session of Modern Money and Public Purpose. This seminar series is held at Columbia University’s Law School and is organized by the Workers’ Rights Student Coalition. Over the coming months, several MMT proponents will be presenting as part of the series including Stephanie Kelton and Warren Mosler on September 25th. Continue reading