Laurence Kotlikoff has been making waves by using “inter-generational accounting” and CBO and IMF data, to compute a fiscal gap of $202 Trillion in present value. He concludes that this gap shows that the US is “bankrupt” as of now. Evidently, publications like Bloomberg take this sort of thing seriously since they publish it. But Modern Monetary Theory (MMT) economists, think it’s nonsense, due to the inapplicability of inter-generational accounting to Governments sovereign in their own currency.

Mike Norman, an MMT economist with a very good blog, got the chance to comment on Kotlikoff’s views, and also some nonsense of Tim Geither’s and President Obama’s, at RT.com.