Solving the budget deficit

The NY Times has a site up for addressing the budget deficit. In opposition to the usual Versailles claims about how hard it is to solve the deficit, I found it pretty easy. My proposal fixes it, essentially by returning to Clinton tax policy, taking the peace dividend, and taxing two activities with substantial negative externalities: CO2 emission and risky bank activities. I don't have to do a thing to Medicare or Medicaid. Other people with radically different political preferences don't seem to find it too hard either. Try it yourself!

Greece and stability

Stability has been much discussed lately but with little useful results. The real problem is not Greece, but that irresponsible finances in *one* medium-to-small country of no major international significance (not a banking center, source of a critical natural resource, etc.) threatens the world economic system. That is seriously unacceptable instability. If the survival of the world economic system requires that *every* country with a GDP larger than um, Massachusetts behaves responsibly at all times, we're doomed.

(Posted as a comment to Naked Capitalism)