Moody's goes all proactive.
As various institutions continue to publish very detailed estimates of how Trump's tax plan will impact the federal budget, which is somewhat amazing since income brackets haven't even been assigned yet, Moody's published a note today threatening to finally strip the U.S. of its AAA credit rating if the tax plan is ultimately passed as currently contemplated....The deficit would be too big. Gotta cut some welfare.
Zero Hedge
"Credit Negative For U.S. Government": Moody's Threatens Downgrade If Trump Tax Plan Is Passed
Tyler Durden
4 comments:
André, the debt limit was created in 1917. It was a gold standard necessity.
Given MMTers' refusal to come up with an operational mechanism for the inflationary constraint, I thank our lucky stars for the only existing constraint of budget deficit hysteria. Yes, I understand that you all are just economists (or, just really smart non-economist with a better way of thinking about how money works), but I'm not ready to leave it to the "adults in the room" to stop themselves on the Right from cutting every tax and the Left to throw money at every problem. I get MTT, but until you all get serious about this fundamental operational flaw, I'll stick with the 99.999% who don't. Just sayin.
@ Salsabob
I hope you are studying Mandarin. :)
Seriously, though, check Brian's latest. It deals with the MMT answer to the inflation constraint.
http://www.bondeconomics.com/2017/10/mmt-and-automatic-stabilizers.html
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