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    U.S. Trade Deficit: Made in Washington, D.C.?

    The Treasury Department recently reported that China and Japan are the largest foreign holders of U.S. government debt. China now owns $1.317 trillion in U.S. government debt. Japan owns another $1.186 trillion. It is no surprise that China and Japan are also the two countries with which the United States … More

    Sequestration Helps Force Needed Spending Cuts and Enables Private-Sector Jobs

    The Congressional Budget Office (CBO) released a letter this week describing how canceling sequestration in 2014 would affect the economy. The CBO dutifully plugged the numbers into its economic model, and the model gave the result it was written to give: more government spending equals more output in the government … More

    Will the Currency Zombie Eat the Trans-Pacific Partnership?

    Currency manipulation is the issue that never dies. No matter how many times the link between exchange rates and American jobs is shown to be tenuous, the matter rises again like a zombie. In this case, it is Japan that has brought exchange rates back into the spotlight, as the … More

    Debt Drag: Krugman, Konczal Miss the Point

    On their respective blogs, economists Mike Konczal and Paul Krugman criticize the widely cited finding that a nation’s debt above 90 percent of its gross domestic product (GDP) slows economic growth. They presume that the limitations of one study by Carmen Reinhart and Kenneth Rogoff mean that its warning can … More

    China Is Not Our Banker

    China has fallen behind Japan as the largest foreign holder of U.S. securities. The Department of the Treasury’s new numbers are good only through June 30, 2012, but it puts Japan at $1.84 trillion and China at $1.59 trillion. There are lots of things to say about this, but one … More

    High Debt Threatens Economic Growth

    Economic scholars have recently shown how high government debt has a negative effect on long-term economic growth. Government debt crowds out private investment, slowing the growth of gross domestic product (GDP) and wages. The consensus is that “debt drag” gets worse as debt rises. Like piling bricks on a sled, … More

    Morning Bell: Why Should I Care About the U.S. Debt?

    You’re busy. So busy you barely have time to read these words. So why should you care about the us debt? Does it affect your life? Unfortunately, high government debt is having more of an impact on each of us than we realize. Heritage’s Romina Boccia explains that high levels … More

    Japan’s Economy - What Really Matters

    Japanese gross domestic product (GDP) fell for the third straight quarter (October–December) and was essentially flat for 2012 as a whole. This continues two decades of stagnation in annual output—Japan’s annual GDP in 2012 is essentially the same as 20 years ago. Stagnation is part of what motivated new Prime … More

    Obama’s $1 Trillion Birthday Present

    President Obama celebrated his 48th birthday yesterday, but instead of being showered with gifts, he handed the American people the biggest present of all: one trillion dollars in new debt. Since Obama was inaugurated in January, the national debt has grown over one trillion dollars to a whopping $11.669 trillion. … More

    What is a Trillion Dollars, Anyway?

    This week’s bloggers’ briefing brought the biggest crowd yet; standing room only. What was the draw? Matthias Shapiro, mastermind of the 10,000 pennies videos that have become a viral sensation, showed the eager bunch how to utilize the overused rhetoric and statistics of the day to instead communicate the numbers … More