Question: What do the president, the party leaders, all members of Congress, all the headline economists (both hawks and doves), the entire Federal Open Market Committee, and just about everyone else apart from Modern Monetary Theory (MMT) proponents agree on?

Answer: They all agree the U.S. has a long-term deficit...

This is far more problematic than markets realize.

The president had a choice. The debt ceiling thing expresses 'the will of Congress' where Congress makes laws for the executive branch to execute.

The president has also sworn to uphold the Constitution which says the president has to...

Fact: Every serious economic forecaster cuts his GDP and employment estimate with tax hikes and spending cuts. (AKA, the looming 'fiscal cliff'!)

Fact: Every serious economic forecaster would raise his GDP and employment estimate with tax cuts and spending increases.

Fact: All agree there would be no moral hazard or...

As the "fiscal cliff" looms, we see that every economist forecasts lower GDP and higher unemployment when government raises taxes and cuts spending. Likewise, every forecast is for higher GDP and lower unemployment when government cuts taxes and increases spending.

Isn't lower unemployment and higher GDP the common goal in...

For a second month, Euro-area exports rose in June, driven by a surge in shipments from Germany, as companies tapped into emerging markets to offset declining demand at home. Exports advanced a seasonally adjusted 2.4 percent from May, when they gained 0.4 percent and the trade surplus widened to 10.5...

There's a reason the hardcore budget balancer/deficit hawks don't last long under the microscope. Their numbers can't add up, which leaves them with contradictory statements.

Why can't they add up?
The dollar is a 'closed system,' what's called a case of 'inside money' due to the fact that...

Trade differentials have been blamed for the euro crisis, implying that that if trade had somehow been balanced there wouldn't have been the kind of liquidity crisis we've been witnessing.

While I do recognize the trade differentials, it remains my deduction that the source of the ongoing liquidity crisis is...

It takes a fiat currency to sustain full employment. And a fiat currency, like the US dollar and the euro, includes the certainty of debt and taxes. Taxation is required to allow the government to spend its otherwise worthless currency. And 'debt' -- some entity spending more than its income...

I can't say I've seen anyone in the deficit debates talking about the demand leakages. Not a mention in the mainstream press, financial news media, or any of the thousands of economic reports? That's like discussing the right horsepower for a truck or an airplane without any consideration of the...

Yes, the Germans are concerned that ECB bond buying and direct funding might be inflationary, but there is something even more fundamental supporting their objection to ECB support.

The problem is, the EU leaders believe the high rates, failed auctions, and related funding and liquidity issues are caused by...

Hardly an hour goes by without some pundit pushing the possibility of some kind of run away inflation, with Zimbabwe and Weimar rolling off the tongues of ordinary Americans everywhere. And Congressman and candidates of all persuasions continuously lambaste the Fed for debasing the currency.

There's no question the Fed...

I realize it's not a perfect analogy, but due to poor communications, the battle of New Orleans was fought well after the War of 1812 had ended. Likewise, the Congressional super committee is fighting the battle for deficit reduction long after the vaporization of the primary reason driving that move...

This proposal will help stabilize the euro financial structure and provide a bit of income from service fees for U.S. member banks.

The Fed has an account at the European Central Bank (ECB). While banks can have accounts at the ECB, they are not currently segregated from the bank's balance...

It's been more than 10 years since the economics department at UMKC (University of Missouri at Kansas City) introduced its own currency. It's called the buckaroo, named in sync with the school mascot, the kangaroo.

It all began when the department indicated a desire to have students contribute their time...

This is the speech I would make if I were President Obama:

My fellow Americans, let me get right to the point.

I have three bold new proposals to get back all the jobs we lost, and then some. In fact, we need at least 20 million new...

Congressman Ryan's response to President Obama's State of the Union address included
something we've all heard a lot of ever since.

He warned along the lines that that the U.S. could become the next Greece, and be faced with some kind of a sudden financial crisis, where the world...

From Warren Buffet to Alan Greenspan and from all the responses to the S&P downgrade by economists and financial professionals from the four corners of the world, THE WORD IS OUT:

The US government is the issuer of the US dollar.

So no matter how large the federal deficit might...

Imagine a card game, where every entity in the economy is one of the players, and you, Congress, are the scorekeeper.

The message here is the difference between being the scorekeeper and being a player. The problem is, you are acting like one of the players when, in fact, you...

Business doesn't create jobs -- consumers do!

It is an article of faith by all parties involved that businesses are the job creators, particularly small businesses, and hence their every move is predicated on helping businesses create jobs.

Mercy! Can't they get anything right?

Businesses hire to service consumers. A...

The following is an outline that I proposed for a new Greek government bond issue to provide all required medium term euro funding for Greece on very attractive terms. It is now making the rounds in Europe as an alternative to the French Plan that is currently under serious consideration