The Problem With Budget Surpluses

NetNet February 22, 2012

Skip navigation #headerOverlay{ color: #ccd6df; font-size:11px; line-height:130%; } #headerOverlay strong{ color: #ffd226; } #headerOverlay a {color:#ccd6df;text-decoration:none;} #headerOverlay a:hover {color:#ffd226;} #headerOverlay a:visited {color:#ccd6df;} #headerOverlay a:visited:hover {color:#ffd226;} Symbol Lookup onloadAutoSuggest(); var pgValue = "CNBSEB"; var cmsKeyWord = "alternative investing"; var cmsNewPG = "CNBWAB"; if ((cmsKeyWord.length > 0) && (cmsNewPG.length > 0)) { var newPG = cmsNewPG.split(';'); var group = cmsKeyWord.split(';'); if (newPG.length == group.length) { var description = cnbc_pagedesc.toLowerCase(); for(var x = 0; x < group.length; x++) { var keyWord = group[x].split('|'); for (var j = 0; j < keyWord.length; j++) { if (description.indexOf(keyWord[j].toLowerCase()) != -1) { pgValue = newPG[x]; j = keyWord.length; x = group.length; }}}}} if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(88,31,pgValue); } else { dapMgr.enableACB("SearchBox88x31",false); dapMgr.renderAd("SearchBox88x31","&PG=" + pgValue + "&AP=1071&PN=CNBC",88,31); } cnbc_displayUsername("cnbc_usertime","cnbc_username");RegisterSign InMember CenterSign OutRegistercnbc_toggleUserState();HOMENEWSMARKETSEARNINGSINVESTINGSMALL BUSINESSVIDEOCNBC TVCNBC PROU.S.Asia-PacificEuropeEconomyEnergyPoliticsTechnologyBlogsSlideshowsSpecial Reports if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(728,90,"CNBGE7"); } else { dapMgr.enableACB("USNewsBlogs728",false); dapMgr.renderAd("USNewsBlogs728","&PG=CNBGE7&AP=1390&PN=CNBC",728,90); } NetHolding you to maturity. var cnbcSubHeaderId = document.getElementById('subheader_'+ 38911124); cnbcSubHeaderId.innerHTML = document.getElementById('renderReaderContent').innerHTML; Current DateTime: 02:50:00 22 Feb 2012LinksList Documentid: 45166246The Buckaroo and the Demand for Money cnbc_commentCountMapObj.cnbc_commentCountMap_put("46314208", "45166246_1","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46314208", "45166246_1","cnbcCommentsTxt" ); College Flunks Four Times; Eliminates Tuition cnbc_commentCountMapObj.cnbc_commentCountMap_put("46310825", "45166246_2","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46310825", "45166246_2","cnbcCommentsTxt" ); ECB May Be Willing to Take a Haircut on Greek Bonds cnbc_commentCountMapObj.cnbc_commentCountMap_put("46312568", "45166246_3","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46312568", "45166246_3","cnbcCommentsTxt" ); College Flunks Four Times; Eliminates Tuition cnbc_commentCountMapObj.cnbc_commentCountMap_put("46310825", "45166246_4","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46310825", "45166246_4","cnbcCommentsTxt" ); New York Housing Market Could Still Collapse: Analyst cnbc_commentCountMapObj.cnbc_commentCountMap_put("46310822", "45166246_5","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46310822", "45166246_5","cnbcCommentsTxt" ); Ouch! UBS's Bonus Pool Got Whacked cnbc_commentCountMapObj.cnbc_commentCountMap_put("46297166", "45166246_6","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46297166", "45166246_6","cnbcCommentsTxt" ); Banks Already Slipping Through New Capital Requirements cnbc_commentCountMapObj.cnbc_commentCountMap_put("46281847", "45166246_7","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46281847", "45166246_7","cnbcCommentsTxt" ); Greek Default: Why Now May Be Best Time to Do It cnbc_commentCountMapObj.cnbc_commentCountMap_put("46281928", "45166246_8","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46281928", "45166246_8","cnbcCommentsTxt" ); What Germans Really Think About the Greeks cnbc_commentCountMapObj.cnbc_commentCountMap_put("45957341", "45166246_9","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("45957341", "45166246_9","cnbcCommentsTxt" ); Why the Social Security Tax Fight Is Stupid cnbc_commentCountMapObj.cnbc_commentCountMap_put("45668349", "45166246_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("45668349", "45166246_10","cnbcCommentsTxt" ); if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(300,900,"CNBGE3"); } else { dapMgr.enableACB("USNewsBlogs300x250",false); dapMgr.renderAd("USNewsBlogs300x250","&PG=CNBGE3&AP=&PN=CNBC",300,900); } Current DateTime: 02:54:52 22 Feb 2012LinksList Documentid: 38910464Expiration DateTime: 2/22/2012 2:57:44 AM cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" ); Stuff We Missed: Tuesday, February 21st cnbc_commentCountMapObj.cnbc_commentCountMap_put("46468172", "38910464_1","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46468172", "38910464_1","cnbcCommentsTxt" ); Modern Monetary Theory's Big Weekend: The Problem with Surpluses cnbc_commentCountMapObj.cnbc_commentCountMap_put("46468147", "38910464_2","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46468147", "38910464_2","cnbcCommentsTxt" ); "?Greece Fatigue': Market Hopes Bailout Plan Will Work cnbc_commentCountMapObj.cnbc_commentCountMap_put("46467892", "38910464_3","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46467892", "38910464_3","cnbcCommentsTxt" ); Sallie Krawcheck: The Euro Is "Fundamentally Flawed" cnbc_commentCountMapObj.cnbc_commentCountMap_put("46465897", "38910464_4","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46465897", "38910464_4","cnbcCommentsTxt" ); Compensation Clawbacks: Bad for Banks, Bad for Shareholders cnbc_commentCountMapObj.cnbc_commentCountMap_put("46467172", "38910464_5","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46467172", "38910464_5","cnbcCommentsTxt" ); Get Ready for Gas Prices to Hit $5 by Summer cnbc_commentCountMapObj.cnbc_commentCountMap_put("46465821", "38910464_6","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46465821", "38910464_6","cnbcCommentsTxt" ); Playing the Banker/Lawyer Game at Stone Rose Lounge cnbc_commentCountMapObj.cnbc_commentCountMap_put("46432982", "38910464_7","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46432982", "38910464_7","cnbcCommentsTxt" ); Memo From the Big Board: Monday Is Not President's Day cnbc_commentCountMapObj.cnbc_commentCountMap_put("46431836", "38910464_8","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46431836", "38910464_8","cnbcCommentsTxt" ); Government Critic John Kinnucan Arrested for Insider Trading cnbc_commentCountMapObj.cnbc_commentCountMap_put("46429425", "38910464_9","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46429425", "38910464_9","cnbcCommentsTxt" ); Weather Service In Eye of Budget Cut Storm cnbc_commentCountMapObj.cnbc_commentCountMap_put("46430601", "38910464_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46430601", "38910464_10","cnbcCommentsTxt" ); Colbert Report Suspends Production cnbc_commentCountMapObj.cnbc_commentCountMap_put("46418567", "38910464_11","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46418567", "38910464_11","cnbcCommentsTxt" ); The Trend Initiation Test for New York Fashion Week cnbc_commentCountMapObj.cnbc_commentCountMap_put("46417315", "38910464_12","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46417315", "38910464_12","cnbcCommentsTxt" ); Golden Cross Pushes One Index Into All Stocks cnbc_commentCountMapObj.cnbc_commentCountMap_put("46416728", "38910464_13","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46416728", "38910464_13","cnbcCommentsTxt" ); AutoNation CEO Mike Jackson: Mitt Romney's Auto Bailout Op-Ed is Reckless and Dishonest cnbc_commentCountMapObj.cnbc_commentCountMap_put("46416340", "38910464_14","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46416340", "38910464_14","cnbcCommentsTxt" ); Congressional Insider Trading Bill May Still Be Flawed cnbc_commentCountMapObj.cnbc_commentCountMap_put("46415795", "38910464_15","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46415795", "38910464_15","cnbcCommentsTxt" ); Hemlines Are Plunging, Is Economy Next? cnbc_commentCountMapObj.cnbc_commentCountMap_put("46414411", "38910464_16","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46414411", "38910464_16","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" ); Email: document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');Call: 201-735-4638Text Message: 917-740-8477 Current DateTime: 02:50:00 22 Feb 2012LinksList Documentid: 39085620FacebookTwitterRSSCurrent DateTime: 02:50:00 22 Feb 2012LinksList Documentid: 38852222John Carney

Runs this joint.

Cadie Thompson

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A senior writer for CNBC.com, covering the gamut of issues affecting the stock market and the economy.

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Some words of wisdom for all the Wall Street Interns this summer.

Current DateTime: 02:57:23 22 Feb 2012LinksList Documentid: 38910635Expiration DateTime: 2/22/2012 3:00:35 AM cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" ); Data Suggests Euro Zone May Slide Back Into Recession cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477787", "38910635_1","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477787", "38910635_1","cnbcCommentsTxt" ); Obama to Float Corporate Tax Overhaul Wednesday cnbc_commentCountMapObj.cnbc_commentCountMap_put("46476601", "38910635_2","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46476601", "38910635_2","cnbcCommentsTxt" ); China's Factory Activity Shrinks for Fourth Month cnbc_commentCountMapObj.cnbc_commentCountMap_put("46474559", "38910635_3","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46474559", "38910635_3","cnbcCommentsTxt" ); ECB Preparing to Close Liquidity Floodgates cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477139", "38910635_4","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477139", "38910635_4","cnbcCommentsTxt" ); Ford Pours $3.8 Billion Into Pension Plan cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477429", "38910635_5","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477429", "38910635_5","cnbcCommentsTxt" ); Oil Could Turn to Headwind as Dow Flirts With 13,000 cnbc_commentCountMapObj.cnbc_commentCountMap_put("46473155", "38910635_6","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46473155", "38910635_6","cnbcCommentsTxt" ); UBS to Issue More Loss-Absorbing Capital cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477346", "38910635_7","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46477346", "38910635_7","cnbcCommentsTxt" ); Gen App: Toys, Tech and Tablets cnbc_commentCountMapObj.cnbc_commentCountMap_put("46468770", "38910635_8","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46468770", "38910635_8","cnbcCommentsTxt" ); Greek Bailout Puts Focus Back on Credit Default Swaps cnbc_commentCountMapObj.cnbc_commentCountMap_put("46475508", "38910635_9","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46475508", "38910635_9","cnbcCommentsTxt" ); Iran 'Winning' on Oil Sanctions: Top Trader cnbc_commentCountMapObj.cnbc_commentCountMap_put("46445695", "38910635_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("46445695", "38910635_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" ); » HelpCurrent DateTime: 02:50:01 22 Feb 2012LinksList Documentid: 38851925Subscribe to this RSS feed

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setDefault('cnbc_textbody');Modern Monetary Theory's Big Weekend: The Problem with SurplusesPublished: Tuesday, 21 Feb 2012 | 3:24 PM ET Text Size By: John CarneySenior Editor, CNBC.com #divButtons .gig-button-container-facebook-like {margin-right:-2px;} #divButtons .gig-button-container-twitter {margin-right:15px;} #divButtons .gig-button-container-google-plusone {margin-right:-16px;} #divButtons .gig-button-container-linkedin {margin-right:17px;} var params ={ userAction:ua, shareButtons: [{provider:'facebook-like',action:'recommend'},{provider:'twitter'},{provider:'google-plusone'},{provider:'linkedin'},{provider:'share',enableCount:false}], containerID: 'divButtons'} if (navigator.userAgent.indexOf("MSIE 6") cnbc_init_droparrows('menu_arrow_','img',cur_navSect); cnbc_getCommentsCount(cnbc_commentCountStr) ; Current DateTime: 01:26:46 22 Feb 2012LinksList Documentid: 29778429CNBC NEWSU.S. NewsAsia-Pacific NewsEurope NewsEconomyEnergyGreenTechnologyBlogsWiresSlideshowsSpecial ReportsCorrections Current DateTime: 02:44:54 22 Feb 2012LinksList Documentid: 29778428MARKETSPre-MarketsWorld MarketsStocksDow 30CommoditiesCurrenciesBondsFunds Current DateTime: 01:26:46 22 Feb 2012LinksList Documentid: 29779196EARNINGSNewsCalendarSurprisesHighlightsIdeas Current DateTime: 01:26:46 22 Feb 2012LinksList Documentid: 29779197INVESTINGStock BlogPersonal FinancePortfolio (Beta)WatchlistStock ScreenerFund ScreenerEarnings Screener Current DateTime: 01:26:46 22 Feb 2012LinksList Documentid: 29779200VIDEOLatest VideoTop VideoU.S. VideoAsia-Pacific VideoEurope VideoCEO InterviewsAnalyst InterviewsCNBC ProCurrent DateTime: 01:29:53 22 Feb 2012LinksList Documentid: 29779199CNBC TVCNBC U.S.CNBC Asia-PacificCNBC EuropeCNBC WorldCNBC HD+Channel FinderCurrent DateTime: 01:26:46 22 Feb 2012LinksList Documentid: 29779198MORESmall BusinessCNBC 360CNBC Mobile WebsiteRSSReal-Time Quotes and Extended HoursLatest Press ReleasesAbout CNBC | Site Map | Video Reprints | Advertise | Help | ContactPrivacy Policy | div.FOOTMC_BI {padding: 5px 10px 5px 10px; text-align:left; line-height:25px;} a#_bapw-link span {margin: 0 0 0 5px !important;} | Terms of Service | Independent Programming Report Data is a real-time snapshot *Data is delayed at least 15 minutesGlobal Business and Financial News, Stock Quotes, and Market Data and Analysis© 2012 CNBC LLC. All Rights Reserved. var scodePath = cnbc_tickerDataPath + "/js/s_code.js"; s_linkInternalFilters="javascript:,cnbc.com"; var s_account="nbcuglobal, nbcucnbcd, nbcucnbcbu"; var s_prop8 ="cnbc"; var s_prop9 ="cnbc.com"; var s_prop10=cnbc_sectionName; var s_prop31=cnbc_topSection; var s_prop32=cnbc_subSection; var s_prop33=cnbc_subSubSection; var s_prop34=cnbc_microSection; var s_prop35=cnbc_nanoSection; var s_prop36=cnbc_docid; var s_prop37=cnbc_doctype; var s_prop38=cnbc_doclayout; var s_prop39=cnbc_docsource; document.write(''); try { cnbc_init_services(); cnbc_highlightSubText(cnbc_docid,"sub_active"); } catch(e){} cnbcSwitchOnRemember("cnbcStreamQuoteMasterToggleRememberSwitch"); setTimeout("cnbc_comboQuoteMoveRun()",10); if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(1,1,"CNBNE0"); } else { dapMgr.enableACB("news1x1",false); dapMgr.renderAd("news1x1","&PG=CNBNE0&AP=&PN=CNBC",1,1); }

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