Wednesday, October 20, 2010

Tuesday updates.

At RCM, John Tamny pens a devastating critique of Fed Chairman Bernanke.

In The WSJ, David Malpass explains how the weak dollar damages the economy.

In reality, workers are being reallocated, and by the millions. Due to the mortgage shambles, they are not moving around as much as in past recessions. But the structural reallocation is clearly pushing older workers into long-term unemployment.

Meanwhile, there's also been a powerful rechanneling of credit away from small businesses. Corporate and government jobs are faring better than small business jobs, another major structural change that Fed purchases will exacerbate by channeling cheap credit to big entities.

Jobs are moving to Asia as Washington's weak-dollar policy causes trillions of dollars to move abroad to protect against the risk of U.S. inflation and dollar debasement. Investors put their money into foreign factories, mines and workers, creating a boom there. They avoid long-term job-creating investments here, instead buying short-term IOUs from our government.

At The Kudlow Report, David Goldman discusses the weak dollar:

On Forbes, Brian Wesbury and Robert Stein
warn against ignoring gold.

At Carpe Diem, Mark J. Perry
notes the dollar’s ten-year forex decline:

In Fortune, Nin-Hai Tseng
suggests even if the lower dollar increases exports, it won’t heal the economy.

At Alhambra Investments, Joseph Y. Calhoun
explains that dollar decline sends investment capital offshore.

The WSJ's Pepper...and Salt comments:

On MarketWatch, David Stockman outlines gold’s former role in restraining debt.

On Kudlow, Stephen Moore debates tax policy:

At Forbes, the estimable Reuven Brenner suggests an agenda to rebuild the middle class.

Also on Forbes, Steve Forbes warns states may default on their bonds.

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