How good is this.At 1.35 pm S and P confirms Australias AAA...

How good is this.

At 1.35 pm S and P confirms Australias AAA credit rating and shortly after we learn.

1.38PM RBA paves way for November rate cut The Reserve Bank of Australia has signalled that it sees a need to further support the economy through various channels, including expanded government bond buying and lowering its official cash rate closer to zero.

NB "Expanded government bond buying." We can stop worrying about the grand kids being burdened with a lot of debt if that debt is funded through selling bonds to the RBA.

I find it very interesting that the government can use the printed money through this mechanism. The government debt is funded by the RBA and the RBA doesn't have any cost of funds so the interest it earns is all profit which it returns to the government in dividends.

The perfect zero sum transaction.

MMT has a lot of merit if the money is spent wisely on worthwhile assets and productive enterprise and not unproductive welfare ( thats a job for taxes).

I think I'll spend the afternoon learning to play another verse of "what a wonderful world."

Friends knocking elbows saying how do you do.........