Mosler vs. Rickards on fixing the economy
I have a treat to share with readers. Warren Mosler and Jim Rickards have agreed to an op-ed debate here on my blog. Over the course of a couple weeks, they’ll engage in intellectual fisticuffs about how to fix the economy.
Who are these two and why do you care what they have to say?
First, they’re both very smart and well-informed.
Mosler, who moved to St. Croix in 2003 to run for Congress in’04, ran a fixed-income arbitrage fund for 15 years without, he claims, a single losing trade. He turned it over to his partners in 1998 with over $3 billion of capital. He’s the progenitor of some of the derivative products traded today and even has his own ultra-cool car company.
Rickards, once upon a time, was LTCM‘s general counsel and the principal negotiator of the hedge fund’s NYFed-sponsored rescue. So when he talks about the dangers of leverage, he knows from where he speaks. Today he’s the economics expert for national security consulting firm Omnis and applies concepts from physics to his analysis of the economy.
Also they’re both very provocative. Mosler’s Law is that “there is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.” Rickards sees a “high degree of probability that gold goes to $2,000 by the end of this year.”
I wanted to give these two a forum because grappling with provocative, well-informed opinions helps keep us all honest.
Look for the first pieces tomorrow or Friday.