From Forbes, Louis Woodhill argues the proper gold price for
dollar relinking should be discovered by markets using transparent rules. On TGSN, Ralph Benko prefers a market mechanism to find the proper gold
price.
At RCM, John Tamny disputes myths about the long-term
unemployed.
On The Kudlow Report, David Goldman argues deflationary
risk is high:
The NY Sunrecounts the last time the Republican platform
supported a dollar convertible to gold.
On TGSN, Benko recounts the story of The Gold Bug. At Seeking Alpha, Jeffrey Rosen discusses the Laffer
Curve. On The Circle Bastiat, Joseph Salerno offers an
alternative explanation of the 19th century financial panics. The NYTreports China’s falling yuan (h/t: James
Pethokoukis). The Koch Foundation makes the case for economic freedom
in 60 seconds:
At The FT, Martin Wolf suggests low tax rates don’t align
with productivity and growth.
From Forbes, Brian Domitrovic highlights Donald Devine’s spending cuts during the Reagan era.
At The WSJ, Holman Jenkins diagnoses inequality obsession. In The WSJ, Stephen Moore notes the Senate vote on the Republican small business tax bill. On The Kudlow Report, Sen. Kay Bailey-Hutchison (TX) debates the plan:
The WSJexplains that yuan convertibility will require substantial financial liberalization in China.
From the Peterson Institute for International Economics, Nicholas Lardy argues that with its current account surplus down and its currency higher, there’s no cause to press China to raise the yuan further. And on the downside, The Washington Postreports PIIE chief Fred Bergsten making common cause with Occupy Wall Street. On TGSN, Ralph Benko highlights a pro-gold article by Princeton scholar and one-time Ben Bernanke collaborator Harold James. At The American, James Pethokoukis critiques arguments that the US should return to 1950s tax rates. From First Trust, Brian Wesbury suggests big government doesn’t make one any more secure from life’s risks. In The WSJ, US Trade Rep. Ron Kirk notes rising export of US services.
From Forbes, Charles Kadlec applauds Mitt Romney’s focus on economic freedom.
In The WSJ, Jason Riley reports conservative Sen. Jim DeMint’s (SC) support for Romney.
At his website, US Rep. Paul Ryan (WI) returns to his supply-side roots with a study, "The Fiscal Effects of FasterGrowth." On CNBC, Steve Forbes discusses the slow growth economy, the dollar, trade and taxes:
At Forbes, David Ranson explains the negative impact of the zero interest rate policy.
From The American, Bret Swanson highlights technology's impact on economic growth.
At Forbes, John Tamny derides the US attack on China’s rare earths export policy.
On The Kudlow Report, a panel discusses the Fed, the market, and the falling dollar:
The WSJreports the dollarization of Zimbabwe’s inflation-ravaged economy. The WSJnotes former flat taxer Gov. Jerry Brown’s (CA) proposal to raise his state’s top tax rate to 13%.
At Globe Asia, Steve Hanke rebuts China-trade hawks.
From Bloomberg, John Cochrane argues Europe needs growth rather than Keynesian deficit stimulus.
At The American, James Pethokoukis highlights academic studies showing tax rates substantially impact economic activity. On CNBC, Ron Paul (TX) pans US Rep. Paul Ryan’s (WI) budget for insufficient spending cuts:
At IBD, Alan Reynolds and Steven Slein examine the Buffett Rule’s likely impact on corporate dividends. The WSJnotes a scoring analysis showing the Buffett Rule would yield little revenue. At TGSN, Ralph Benko explains the monetary roots of the Panic of 1837. On Forbes, Louis Woodhill critiques the President’s recent energy speech. At Forbes, Jerry Bowyer analyzes the gold price’s recent decline. From Comedy Central, South Park satirizes the weak-dollar cash-for-gold market:
The NYTreports Britain cutting its top tax rate (minimally) while maintaining spending austerity.
The Washington City Papercalls supply-side economics a con.
From Forbes, Brian Domitrovic explains the weak dollar caused the real estate bubble.
In The NY Sun, Ira Stoll notes the problems for savers with zero interest rates.
At RCM, John Tamny suggests there’s nothing wrong with China’s new trade deficit.
On The Kudlow Report, John Rutledge discusses the US’s tough trade stance towards China:
At TGSN, Ralph Benko highlights Jacques Rueff’s analysis of the monetary errors that led to the Great Depression. In The Washington Times, Richard Rahn argues the world economy’s future is bearish. From Alhambra Partners, Joe Calhoun expresses pessimism about the economy. At Hindu Business Line, G. Ramachandran links Robert Mundell’s euro to the Roman Empire. On The WSJ, Paul Gigot discusses Newt Gingrich’s prospects in the southern primary states:
On Econlog, David Henderson disputes Louis Woodhill’s analysis of gold and oil.
In The NYT, Bruce Bartlett advocates higher tax rates to raise more revenues.
From Forbes, Charles Kadlec urges House Republicans to take credit for the improving economy.
The WSJnotes the US debt burden will soar if interest rates rise from their historically low level.
In Forbes, Steve Forbes links oil’s price rise to the dollar’s decline.
On The Kudlow Report, Brian Wesbury debates the claim that everyday prices point to an 8% inflation rate:
On International Liberty, Dan Mitchell applauds Sen. Rand Paul’s (KY) plan to slow federal spending. At Forbes, Ralph Benko reviews James Rickards’ Currency Wars.
On RCM, Louis Woodhill argues the economy is doing better because monetary and fiscal stimulus have largely stopped. In The WSJ, Charles Calomiris advocates the Fed should increase its cash reserve requirement to restrain inflation.
From The Independent Institute, Robert Higgs predicts the deficit and monetary splurge of recent years will have long-term consequences.
On Kudlow, our pal Sean Spicer of the RNC argues the President’s policies contribute to high gas prices:
At RCM, Robert Samuelson analyzes Japan’s two lost decades but mostly avoids its soaring exchange rate versus the dollar.
On Slate, Wei Gu and Edward Hadas suggest China’s trade deficit points to a fundamental shift towards consumption in its economy.
From Forbes, Louis Woodhill provides a tutorial on monetary issues.
On Forbes, Steve Forbes critiques the Fed’s approach to rescuing the housing market.
AP reports Congress reaffirmed punitive tariffs against China for export subsidies. On The Kudlow Report, Phil Kerpen of Americans for Prosperity argues Obamacare will drive employers out of private insurance:
At PJ Media, Jaime Daremblum highlights the danger of Argentina’s capital inflight and inflation.
On RCM, John Tamny argues California’s best days are ahead of it.
In The WSJ, Dan Henninger applauds Rick Santorum for emphasizing Obamacare’s threat to personal freedom.
On Kudlow, James Pethokoukis discusses the GOP’s prospects for November:
Market News International reports US Rep. Kevin Brady (TX) proposing a bill to eliminate the Federal Reserve’s unemployment mandate.
From The Atlas Sound Money Project, Nicolas Cachanosky notes lack of consensus about which gold standard opponents reject.
From Forbes, Brian Domitrovic provides the history behind Newt Gingrich’s Gold Commission.
The WSJuses Mitt Romney’s tax return to argue for fundamental tax reform.
On NRO, Larry Kudlow reports Romney believes the President’s class warfare strategy is designed with him (Romney) in mind.
From Forbes, Steve Forbes advises Mitt Romney to come out with a strong pro-growth, pro-capitalism message.
On The Kudlow Report, Romney critiques Gingrich’s flat tax plan and suggests, oddly, that Congress could manipulate the dollar’s exchange rate under the gold standard:
At The American, James Pethokoukis responds to the President on tax fairness.
From PJ Media, David Goldman argues the true unemployment rate, about 1 in 4, guarantees a single term for President Obama.
At RCM, John Tamny suggests hedge fund success implies stock market weakness. On Peter Schiff’s radio show, Steve Forbes critiques Romney on the China currency debate:
IBDexplains Dodd-Frank’s highly negative effect on small and community banks. CNSNews notes commodity price increases under President Obama. At Barron’s, Pimco’s Bill Gross suggests the economy is pulled between deflationary and inflationary forces:
From The Hoover Institution, Richard Epstein critiques Massachusetts Senate candidate Elizabeth Warren’s economic proposals. The NYThighlights the President’s tough talk on China.
From Forbes, Louis Woodhill explains why tax increases are destructive to GDP, the private sector, and government revenues.
On China Daily, Robert Mundell advocates tax cuts in China.
At Parcbench, Ralph Benko urges the GOP to have fun as the party of getting rich.
From TGSN, Kelly Hanlon reports from the recent Atlas Foundation conference on sound money.
On The Kudlow Report, US Rep. Ron Paul (TX) discusses his attack on Newt Gingrich:
From Cato, Kevin Dowd advocates a path back to a gold-linked dollar.
At The NY Sun, Seth Lipsky gives a favorable review to the new Thatcher movie.
TGSN reprints a NYT editorial from 1896 on the gold standard.
The WSJsuggests easier dollar borrowing for Europe won’t improve the situation much.
On Kudlow, Don Luskin discusses the stocks market:
On International Liberty, Dan Mitchell defends “trickle down” economics.
In The WSJ, Michael Auslin argues Japan is strong fundamentally but needs reform.
All this suggests that Japan needs more structural reform, particularly in three areas: reducing regulation, opening up to foreign direct investment, and expanding free-trade networks. Prime Minister Yoshihiko Noda's recent decision to join negotiations over the free-trade Trans-Pacific Partnership is a good start, but he needs to overcome opposition in his own party to assure full participation.
In The WSJ, former SEIU president Andy Stern argues the US should imitate China’s centrally planned economy.
On Forbes, Nathan Lewis distinguishes between currencies linked to gold vs. backed by gold.
At a leading website in primary state Iowa, Ralph Benko argues the gold standard advantages main street rather than wall street.
On Bloomberg, Robert Mundell suggests monetary reform featuring fixed exchange rates among major currencies, with gold as an intermediary:
FOX: Now, you've written about the role of gold in the world economy, Professor Mundell. Do you think that we're going to see any kind of return to the gold standard?
MUNDELL: I - nothing like the gold standard that existed before 1914. But there could be a kind of Bretton Woods type of gold standard where the price of gold was fixed for central banks and they could use gold as an asset to trade central banks. The great advantage of that was that gold is it’s nobody's liability and it can't be printed. So it has a strength and confidence that people trust. So if you had not just the United States, but the United States and the euro tied together to each other and to gold, gold might be the intermediary, and then with the other important currencies, like the yen and the Chinese yuan and the British pound, all tied together as a kind of new SDR, I think that would be one way the world could move forward toward a better monetary system.
At NRO, Larry Kudlow recounts House Republican leader Eric Cantor’s (VA) focus on jobs and growth.
From Forbes, Bret Swanson explains the budget ramifications of 2, 2.5, 3 and 4 percent annual growth:
In a bellwether column, National Review editor Rich Lowry admonishes the GOP to focus on economic growth:
The unemployment rate is still at 9 percent. According to Gallup, 35 percent of people say the economy is their top concern, and 22 percent say jobs. Just 12 percent cite the federal deficit and debt. Republicans have taken the top concern of roughly one-eighth of the public and made it their existential cause. On top of that, they have taken a subset of the debt issue, the long-term fiscal sustainability of Medicare, and made it their calling card.
On The Kudlow Report, Art Laffer outlines a tax reform agenda to supercharge economic growth:
From Bloomberg, Stephen L. Carter suggests small and medium size businesses are paralyzed by regulatory uncertainty.
At New World Economics, Nathan Lewis continues his explanation of gold’s great long-term stability.
From last year, Chris Mahoney of Granite Springs Asset Management speculates that China could use its dollar assets to peg the euro to the dollar, and by extension to the yuan.
From The Financial Times, Benn Steil and Manuel Hinds explain that the dollar’s reserve status is bad for the world and for the U.S.
At Forbes, Brian Domitrovic suggests the IMF has little purpose without fixed exchange rates.
In The WSJ, Stanford’s Ronald McKinnon sees stagflation in the economy.
Not having an exchange-rate constraint, the Fed can conduct a more independent monetary policy than other central banks can. How it chooses to exercise this independence is crucial to the stability of the international monetary system as a whole. For more than two years, the Fed has chosen to keep short-term interest rates on dollar assets close to zero and—over the past year—applied downward pressure on long rates through the so-called quantitative easing measures to increase purchases of Treasury bonds. The result has been a flood of hot money (i.e., volatile financial flows that are subject to reversals) from the New York financial markets into emerging markets on the dollar's periphery—particularly in Asia and Latin America, where natural rates of interest are much higher.
Wanting to avoid sharp appreciations of their currencies and losses in international competitiveness, many Asian and Latin American central banks intervened to buy dollars with domestic base monies and lost monetary control. This caused a surge in consumer price index (CPI) inflation of more than 5% in major emerging markets such as China, Brazil and Indonesia, with the dollar prices of primary commodities rising more than 40% world-wide over the past year. So the proximate cause of the rise in U.S. prices is inflation in emerging markets, but its true origin is in Washington.
In India’s Free Press Journal, S.S. Tarapore discusses the gold standard and that nation’s economy.
In The Washington Times, Richard Rahn reports on a destructive banking regulation that would require U.S. banks to report the names of foreign account holders to their home governments.
From Alhambra Investments, Joe Calhoun suggests Fed Chairman Bernanke has turned the U.S. into a nation of speculators – again.
At CNBC, supply-side foe Peter Peterson talks about the need for higher taxes to fight the debt, but doesn’t mention growth:
Bloomberg notes Grover Norquist’s clout in opposing tax increases as part of a budget deal.
The Washington Postreports Paul Volcker saying that we need tax reforms that raise more than 19 percent of GDP.
Cato’s Steve Hanke challenges Keynesian claims about deficits and growth.
The Washington Postexplains how Chinese manufacturers evade U.S. tariffs.
On Forbes, Ralph Benko sees politics behind a recent IRS rules change to tax donations to 501(c)(4) organizations.
Chris Powell of GATA comments on our WSJ article on Mundell.
At Asia Times, David Goldman disagrees with some elements of Mundell’s analysis.
The National Foundation For American Policy reports that children of immigrants drive U.S. achievements in science and math.
In The NYT, Bruce Bartlett critiques the Fair Tax.
From Forbes, Brian Domitrovic remembers the Soviet Union’s pursuit of gold to keep itself going.
At TGSN, Domitrovic notes that Mexico is buying gold to get away from the weak dollar.
On NRO, Larry Kudlow applauds Speaker Boehner’s tough debt ceiling speech.
The Financial Timesreports Speaker Boehner linked the falling dollar to high commodities in his speech (h/t/: Bretton Woods Research):
In his speech, Mr Boehner took an implicit swipe at the Federal Reserve, blaming it and the Obama administration for high petrol prices. “There’s a clear connection between high gas prices and the weak dollar that some in Washington have quietly welcomed over the past couple of years. It’s well known that when you print tons of money, the dollar sinks, and the price of food and energy rises significantly.”
On The Kudlow Report, David Goldman discusses U.S. negotiations with China:
At Human Events, John Hayward explains that a weak dollar means strong oil.
On New World Economics, Nathan Lewis measures commodity values against gold.
From Alhambra Investments, Joe Calhoun assesses last week’s dollar spike/commodity dip.
In The NYT, Mark Weisbrot recommends Greece withdraw from the euro and devalue its new currency.
From the Laffer Center archive, Art Laffer argues for a return to dollar convertability.
At NRO, Burt Fulsom suggests spending cuts caused the economic expansions of the 1920s and ‘40s, while spending increases caused the 1970s stagflation.
The WSJreviews Fed Chairman Bernanke’s press conference:
By our lights Mr. Bernanke's least credible moment came on the dollar. The Chairman repeated the bromide that preserving the purchasing power of the greenback is a core central bank goal, which he said it will accomplish by keeping inflation low and reviving growth to attract capital from abroad.
Mr. Bernanke had clearly worked out his dollar remarks with Treasury Secretary Tim Geithner, whom he saluted for saying a day earlier that "our policy has been and will always be, as long at least as I'm in this job, that a strong dollar is in our interests as a country."
The only trouble is that no one believes this. Capital has been fleeing dollar-denominated assets for months because investors believe that the Fed and Treasury are at best agnostic about dollar devaluation, at worst playing beggar-thy-neighbor to boost U.S. exports and force China to revalue its currency.
At Forbes, Seth Lipsky poses additional questions for Fed Chairman Bernanke.
The NY Sunlaments Bernanke’s failure to mention gold.
On The Kudlow Report, David Goldman discusses Bernanke’s performance:
The OC Registercites Jude Wanniski on the 15:1 relationship between gold and oil prices.
On NRO, Larry Kudlow argues that stagflation is back.
In The WSJ, Dan Henninger scolds the President for his tax-the-rich rhetoric.
From The American Spectator, Peter Ferrara suggests the President doesn’t understand economics.
On Kudlow, Stephen Moore discusses the economy’s impact on the President’s re-election:
On Forbes, Louis Woodhill reports Greece is likely to default on its debt but can get back on track with pro-growth measures and sticking with the euro.
The Economistapplauds China for its appreciating currency.
At Economic Policy Journal, Robert Wenzel notes per capita gold reserves (h/t: Free Banking):
Cato offers Lew Lehrman and Ron Paul’s book, The Case for Gold.
On International Liberty, Dan Mitchell cites research by Prof. Emmanuel Saez that suggests soccer players change their behavior based on tax rates.
From TGSN, Ralph Benko reports a congressional hearing on rising prices featuring James Grant and Lewis Lehrman.
At The Kudlow Report, Niall Ferguson wonders if Japan’s debt burden can handle reconstruction costs and sees similarities in the US to the 1970s:
From Alhambra Investments, Joe Calhoun critiques commentators who see a stimulus opportunity in Japan’s disaster.
At But What The Hell Do I Know, John Papola scolds Keynesians Larry Summers and Paul Krugman for suggesting disasters and war are stimulative. (H/t: Jerry Bowyer.)
In The WSJ, Francis Fukuyama wonders if China’s rising middle class will revolt against its government.
It is certainly true that the dry tinder of social discontent is just as present in China as in the Middle East. The incident that triggered the Tunisian uprising was the self-immolation of Mohamed Bouazizi, who had his vegetable cart repeatedly confiscated by the authorities and who was slapped and insulted by the police when he went to complain. This issue dogs all regimes that have neither the rule of law nor public accountability: The authorities routinely fail to respect the dignity of ordinary citizens and run roughshod over their rights. There is no culture in which this sort of behavior is not strongly resented.
This is a huge problem throughout China. A recent report from Jiao Tong University found that there were 72 "major" incidents of social unrest in China in 2010, up 20% over the previous year. Most outside observers would argue that this understates the real number of cases by perhaps a couple of orders of magnitude. Such incidents are hard to count because they often occur in rural areas where reporting is strictly controlled by the Chinese authorities.
Also in The Journal, Edward Chancellor reviews a book that argues China’s state banks have papered over large losses.
In The WSJ, Stephen Moore notes a breakdown in Democratic messaging over budget policy.
At Forbes, John Tamny critiques McDonald’s less fatty menu.
