Yet Bernanke seems to possess some Keynesian baggage, using such nomenclature as "aggregate demand, " "core inflation, " "potential output" and "output gap, " as though the economy were made up of interchangeable parts.

FORBES: Fact and Comment

As I have explained here many times, it is impossible for the US to default on the debt (because it is denominated in dollars), deficits create private sector wealth (while surpluses reduce it), and we NEED the government to supplement aggregate demand so that we can generate output and employment to our potential.

FORBES: What Obama Should Say (But Won't)

Instead of focusing on aggregate demand replacement, policymakers should view government stimulus spending from an economic return perspective that focuses on the potential value created by government spending versus the potential value created by private spending.

FORBES: The Policy Value Gap, Part 1: A Fiscal Perspective