Monday update.

On Forbes, John Tamny rebuts Paul Krugman’s claim that the world in running out of resources.

The NY Sun notes Sarah Palin’s appreciation for gold and other commodities.

On The Kudlow Report, Art Laffer discusses Illinois’s big tax increase:



At Asia Times, David Goldman says banks are increasing their holdings of Treasuries.

The Financial Times reports prices are rising across the world (hat tip: Jerry Bowyer).

On Bloomberg, Caroline Baum explains Keynesianism’s flaws.

When Obama talks about “growing the economy,” one can see the ghost of John Maynard Keynes rising from the grave. Lord Keynes, who developed the theory without coining the phrase, generally returns at times of economic crisis to advise the current occupant of the White House on how to borrow and spend our way to prosperity. Spending revives the economy, which reduces government transfer payments (unemployment compensation, for example) and raises tax revenues, according to Keynes’s theory.

In other words, the spending pays for itself.

“How marvelous is the Keynesian world!” wrote Henry Hazlitt in “The Failure of the ‘New Economics:’ An Analysis of the Keynesian Fallacies.” “The more you spend the more you save. The more you eat your cake, the more cake you have.”

From Voxeu, Barry Eichengreen examines the future of the dollar.

Rebelyid discusses the successes of supply-side economics.