Mosler vs. Rickards on fixing the economy

January 6, 2010

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.


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Mr. Mosler – Who is candidate for president 2012, who thinks that the deficit doesn’t matter and we have to spend as much as we can to go back to prosperity…Yeah baby! According to Mr. Mosler deficits are essential, a must have, to achieve prosperity for the society…


Mr. Rickards – Who was part of LCMT rescue…. Yeah baby! Another banker/lawer negotiating bailout money for their friends – the banksters, who were salivating in 1997, awaiting enormous profits and got clobbered by the black swan….

How about

Paul Krugman vs Lew Rockwell


Roubini vs Stiglitz

That would be far more interesting

Posted by The Cynical Economist | Report as abusive

Mosler vs. Rickards on fixing the economy = what government currently does…expanding deficit spending and bailing out failed institutions

Paul Krugman vs Lew Rockwel = stimulus spending vs financial discipline

Roubini vs Stiglitz = Doom no matter what vs More Spending for brighter future

Posted by The Cynical Economist | Report as abusive

Sorry, Rolfe. They may both be very smart guys, but they don’t seem to quite represent opposite sides of the spectrum (at least, not from your intro of them).

I’ll read, b/c tbh I’d read your grocery list if you posted it… I’m just not sure how great it’s going to be.

Posted by Justin | Report as abusive

I think Rickards gets a bum ram in comments so far…watch this video.. 1s

Posted by Dick Hardy | Report as abusive

What a contrast.

Rickards thinks the U.S. can go broke as it seems he thinks we are still on a gold/SDR standard.

Mosler thinks the U.S. has no funding issue as he thinks we are operating on a fiat money standard.

Hope one can convince the other. The winner should get a permeanent position on CNBC.

Posted by David | Report as abusive

And I think most of these comments are from lazy, ignorant, intellectually dishonest bums, who haven’t taken the trouble to actually examine and think through any of the positions in depth. Have any of you fools bothered to actually read and study Keynes? Are you even capable of it? Do you really understand the chartalist position that Mosler, Randall Wray and Bill Mitchell and James Galbraith and Scott Fullwiler and Marshall Auerback represent? I don’t think so. Why not listen and learn?

Posted by Sam | Report as abusive

[…] from Warren Mosler in a debate with Jim Rickards about how to fix the economy. More on the authors here. This is a response to Rickards first piece. Mosler’s first piece is […]

Posted by Mosler: The wrong standard | Read NEWS | Report as abusive

[…] debate with Warren Mosler about the economy. Here are links to previous posts in the series: Writer biographies / Mosler #1 / Rickards #1 / Mosler #2.  There will be one more post from each […]

Posted by Rickards: You can’t print your way out of debt | Read NEWS | Report as abusive