From Globe Asia, Steve Hanke makes the important point
that despite generally loose government monetary policy, private sector
monetary creation is tight (and accounts for 85% of total money supply),
perhaps explaining how commodity inflation can coexist with deflationary
headwinds.
At The Financial Post, Terry Corcoran cites Hanke’s
analysis to critique the series of non-productive international summits.
NPR's Marketplace quotes Hanke in assessing Ben Bernanke’s policies.
On Fox News, Steve Forbes calls the idea of raising taxes
in the current climate preposterous:
At Forbes, Louis Woodhill cites Jude Wanniski’s political
model explain the Greek election’s outcome.
From earlier this month in The WSJ, James Grant reviews two books
defending capitalism but notes their lack of focus on the need for monetary
reform.
The WSJpans Bernanke’s extension of Operation Twist.
From First Trust, Brian Wesbury highlights the Fed’s
non-committal policy.
In The WSJ, Dan Henninger contrasts the presidential
candidates economic messages.
On AEI, James Pethokoukis reports Michael Darda’s view on
NGDP targeting.
In The WSJ, Matthew Slaughter argues the Employ American
Workers Act has weakened the economy.
At PJ Media, David Goldman analyzes Saudi Arabia’s role
in propping up Egypt’s military against the Muslim Brotherhood.
At Forbes, Brian Domitrovic explains the dollar’s gyrations damaging impact on the euro.
From Bloomberg, Obama economist Peter Orzag notes that the mortgage crisis destroyed the same amount of wealth as the dot-com bust and wonders why its result was so much more severe. Left out of his analysis is the Great Dollar Appreciation of 2008, which was a separate, economy-killing event from the initial mortgage bust.
At Streit Talk, Steve Hanke diagnoses the Eurozone’s travails, including Greece’s sharp deflationary environment.
On The Kudlow Report, Art Laffer debates the weak economy:
The NY Sunapplauds US Rep. Ron Paul’s recent TV debate with Paul Krugman as Hayek vs. Keynes. From Paper Money Collapse, Austrian economist Detlev Schlichter advises on how to debate Krugman (h/t: TGSN). At Fiscal Times, Liz Peek castigates Krugman for his pro-inflation bullying of Ben Bernanke. On Econlog, David Henderson defends Romney supporter Edward Conrad’s pro-wealth views from Krugman. In The Economist, Will Wilkinson critiques Stephen King’s call for tax increases. From First Trust, Brian Wesbury notes the economy’s slowing but remains optimistic. The NYTreports China’s vanishing current account surplus, but notes continued US pressure to revalue the yuan. On NRO, Kevin Hassett explains the negative impact on growth of policy uncertainty. From The WSJ, Dan Henninger notes the Obama Administration’s attempts to court young voters with handouts rather than growth and jobs:
At Econtalk, John Taylor discusses his new book, First Principles: Five Keys to Restoring America's Prosperity. TGSN recounts the Free Silver Movement’s history.
From Forbes, Charles Kadlec highlights Obama economist Christina Romer’s scholarly writing on the negative impact of tax increases.
The WSJnotes a rising threat to Europe’s borderless trade policy.
In Forbes, Ralph Benko profiles Art Laffer and Stephen Moore’s Rich States, Poor States.
At The WSJ, Paul Gigot and Dan Henninger discuss the Netherland’s proposed tax increases and declining growth:
At RCM, John Tamny explains that economic fairness makes everyone poorer. From Alhambra Partners, Joe Calhoun remains moderately bearish on the world economy.
At Forbes, Grove City Prof. Mark Hendrickson highlights the Obama Administration’s interest in a global corporate tax (h/t: Future of Capitalism).
In Barrons, Stanford's John Taylor critiques Keynesian tax stimulus and advocates rules-based monetary policy. At TGSN, Ralph Benko argues gold offers the best rule for monetary stability. In The WSJ, Stephen Moore reports Republicans may not win retiring Sen. Kent Conrad’s (ND) seat. On The Kudlow Report, Tamar Jacoby debates Arizona’s immigration policy:
In The NYT Magazine, Paul Krugman urges Fed Chairman Bernanke to increase inflation. At The WSJ, Peter Diamond and Emmanuel Saez argue higher top tax rates will generate more federal revenue and not harm growth. USA Todaydredges up hoary misconceptions about the gold standard.
From Forbes, Steve Forbes talks taxes and trade with President George W. Bush.
At Forbes, Louis Woodhill quotes Jude Wanniski to argue Obamacare must be repealed. The Washington Timesreports Mitt Romney leading the President on the economy. In The WSJ, Karl Rove urges Romney to counter the President’s class warfare with focus on growth. The Spectatorfeatures a symposium with Stephen Moore and US Rep. Paul Ryan (WI) on the budget and taxes:
In The WSJ, Dan Henninger parallels the President’s rhetoric with FDR’s in 1936. Reasonhighlights the President’s scapegoating of oil speculators. At TGSN, Ralph Benko recounts the history of the post-Civil War Legal Tender Cases. From National Review in 1978, Alan Reynolds and William Peterson promote the gold standard. Also from the NR archive, Bruce Bartlett argues for supply-side tax cuts.
The NY Postexcerpts US Rep. Paul Ryan’s (WI) speech on tax competitiveness to the GW Bush Institute.
In The WSJ, Dan Henninger reports the Left’s attack on Ryan’s budget. On The Kudlow Report, Steve Forbes discusses the economy:
At Bloomberg, Caroline Baum opposes calls for higher inflation. From The Council on Foreign Relations, Benn Steil critiques the Volcker Rule. Reuters reports on China economic and currency liberalization initiatives. On C-SPAN, Stephen Moore discusses plans to raise tax rates:
From Heritage, John Stossel discusses media opposition to free market ideas.
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, Chris Barth reports David Malpass argues the dollar should rise due to tighter money, not the falling euro.
In Bloomberg, Amity Shlaes challenges Paul Krugman on fiscal austerity.
A reader comments: Amity Schlaes pens an austerity-can-lead-to-growth op-ed, dismissing Paul Krugman's call for more Keynesian spending, but commits a startling error:
...There is evidence that austerity did lead to growth in the past, and that it did not cause fascism. These examples may be less known, but they suggest that austerity can bring recovery faster than spending can.
A strong example in U.S. history is the recession of the early 1920s. Responding to a downturn, the federal government didn't spend; it cut itself in half. Recovery followed so rapidly few people even remember that recession.
Brian Domitrovic has written how there was virtual consensus between Presidents Wilson's and Harding's money men on reducing top marginal rates before the election, so how could Shlaes forget Mellon’s tax cutting agenda that kicked off the Roaring Twenties? The Revenue Act of 1921 brought the top marginal tax rate down to 58% in 1922 from 73%, and with subsequent reductions, Mellon was able to get that top tax rate down to 25% by 1925. The austerity of the 1920s did not take place without efforts to foster economic growth. In this, Shlaes was sloppy.
On NRO, Larry Kudlow reports Senate Minority Leader Mitch McConnell (KY) pushing for the Keystone Pipeline in exchange for the payroll tax cut.
On The Kudlow Report, Steve Forbes discussesNational Review’s editorial opposing Newt Gingrich:
From Forbes, Louis Woodhill argues pro-growth policies explain Gingrich’s rise.
At The American, James Pethokoukis suggests Gingrich’s Iowa lead is softening.
In The American Spectator, Ben Stein predicts President Gingrich and Vice President Huntsman.
At The WSJ, Dan Henninger portrays Gingrich as Mitt Romney’s sparring partner, toughening the former governor up to debate President Obama.
On NRO, Elise Jordan sees Jon Huntsman failing to capitalize on recent opportunities.
At Forbes, Jerry Bowyer highlights the role of interest rates to functional economic and financial systems.
From First Trust, Brian Wesbury predicts unemployment will be down to 8% by Election Day.
On The WSJ, Steve Cortes argues the Chinese economic model won’t work in the long run:
In The WSJ, conservative Keynesian Martin Feldstein pans the Eurozone economic deal.
On C-SPAN, PIIE’s C. Fred Bergsten – Keynesian and key intellectual driver of the 1970s dollar devaluation and subsequent Great Inflation – argues more American jobs will come from rebalancing world trade by lowering the dollar’s exchange rate to a competitive level (around minute 13).
In The American Spectator, Lew Lehrman suggests the choice of monetary policy is between Robert Mundell’s idea for an exchange rate peg between the dollar and euro versus the gold standard.
From Asia Times, David Goldman predicts slow growth but sees no reason to panic.
At The American Spectator, Peter Ferrara sees the US falling into depression if the Bush tax rates lapse after 2012.
On The Kudlow Report, Tamar Jacoby debates the economics of immigration:
In The WSJ, Dan Henninger notes the President’s political weakness on the economy and the strength of Tim Pawlenty’s pro-growth message.
At The NYT, Matt Bai suggests the President’s reelection message, don’t change horses in midstream, is a loser.
On Future of Capitalism, Ira Stoll reports McCain economist Doug Holtz-Eakin saying 5% annual growth rates are impossible.
On Kudlow, guests discuss possible deflationary pressures in China:
At the liberal Mother Jones, Kevin Drum suggests the Left could like supply-side economics if it raised revenues as fast as advertised.
On Think Progress, Matt Yglesias takes up Drum’s point but argues the Left won’t support tax cuts due to inequality concerns.
In The NYT, Jackie Calmes reports the flagging economy is leading Democrats to push for additional spending stimulus despite high deficits.
At TNR, Jonathan Chait notes the President’s consideration of a payroll tax cut.
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.
The Fed first tried QE, as it's called, with $1.75 trillion of bond purchases starting in December 2008, but that was at the height of the financial panic when markets were frozen. The Fed's justification for this current round is that inflation is too low and growth too slow to reduce unemployment. The Fed promised to buy $600 billion in bonds for starters, and to keep buying until the rate of inflation rises, presumably above its 2% target.
This is a terribly risky strategy for what we expect will be little economic gain. The Fed hopes the policy will have the effect of reducing long-term interest rates by 25 to 50 basis points or more, but the 10-year Treasury bond is already near historic lows. Marginal business borrowers aren't worried about the price of money; they're worried about the vagaries of economic policy. QE2 only adds to this uncertainty, as the Fed expands its role into fiscal policy and credit allocation.
Meanwhile, Mr. Bernanke's monetary cowbell will flow into higher commodity prices and other assets, perhaps leading to more bubbles. It has already caused havoc around the world, as investors flee the dollar for other currencies. Dollar-bloc countries are already seeing an increase in their price levels and several are contemplating capital controls.
In The Financial Times, U.S. Rep. Paul Ryan (WI) emphasizes growth – including sound money.
On The Kudlow Report, Brian Wesbury sees the Fed funds rate as too low and likely to lead to inflation:
At Forbes, Steve Forbes suggests provisions to change in Obamacare.
From the Mises Institute, Austrian Robert Murphy challenges "60 Minutes" on taxes.
Australia’s you.com discusses the effect of tax rates on the Rolling Stones (H/T: Greg Mankiw):
The Stones are famously tax-averse. I broach the subject with Keith in Camp X-Ray, as he calls his backstage lair. There is incense in the air and Ronnie Wood drifts in and out--it is, in other words, a perfect venue for such a discussion. "The whole business thing is predicated a lot on the tax laws," says Keith, Marlboro in one hand, vodka and juice in the other. "It's why we rehearse in Canada and not in the U.S. A lot of our astute moves have been basically keeping up with tax laws, where to go, where not to put it. Whether to sit on it or not. We left England because we'd be paying 98 cents on the dollar. We left, and they lost out. No taxes at all. I don't want to screw anybody out of anything, least of all the governments that I work with. We put 30% in holding until we sort it out." No wonder Keith chooses to live not in London, or even New York City, but in Weston, Conn.
Of course, it wasn't just the taxman's pinch that forced the Rolling Stones to focus on the bottom line. They also got screwed by record labels. "In the early days you got paid absolutely nothing," recalls Jagger. "The only people who earned money were the Beatles because they sold so many records."
At The WSJ, Daniel Henninger advocates a resurgence of the Republican Party’s growth wing.
The growth issue has defaulted to the Republican Party. That's the pity. Hardly anyone in the party remembers how to give economic growth the starring role it deserves. The last Republicans able to talk about growth as a crucial, creative, essential force, a driver of American prosperity and primacy (think the China threat) were Ronald Reagan, Jack Kemp and Steve Forbes. The current crop of Republican leaders and presidential contenders, about to be handed the opportunity of a generation, are in danger of reverting to the party's austerity-only obsessions. Austerity-only policies are producing Europe's riots.
Reducing spending, controlling entitlements, reforming public pensions—all of that matters. It's important. But any population being asked to "sacrifice" needs to be able to believe something better is possible. That's the challenge of political leadership.
On Forbes, Brian Wesbury and Robert Stein argue that quantitative easing by the Fed is no longer justified.
At Barron’s, Michael Kahn explains stock prices are depressed when measured against gold.
At CNBC, Steve Forbes echoes John Tamny's recent prediction of a return to a gold-linked dollar:
On The Future of Capitalism, Ira Stoll reports on David Malpass’s recent comments on the Fed.
On Asia Times, David Goldman advocates buying guns and ammo before physical gold.
Also in The Journal, Craig Barrett and James B. Moore Jr. argue high corporate tax rates push companies offshore.
On The Kudlow Report, Jerry Bowyer opposes dollar devaluation:
In USA Today, President Carter inadvertently makes a good point: that anti-establishment revolts arise during weak dollar eras.
The Denver Post’s Mike Rosen claims calls for tax hikes are based on envy, not economics.
