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 Daily Caller, Ralph Benko argues the gold standard is necessary to rejuvenate the economy.
At RCM, Joe Calhoun explains how stabilizing the dollar against gold would cause a rush of capital out of commodities into the productive economy.
On Forbes, Louis Woodhill suggests the true value of gold today is $218.
At NRO, Larry Kudlow links commodity volatility to the seesawing dollar.
On The Kudlow Report, a panel handicaps the GOP presidential candidates and agrees none of the contenders has a strong pro-growth message:
From RCM, John Tamny reviews Adam Fergusson’s When Money Dies, about Weimar Germany’s catastrophic devaluation.
Politicoreports Republican attempts to reframe the Medicare debate.
On The Washington Post, progressive Ezra Klein attempts to show that tax rate increases wouldn’t retard economic growth.
At The WSJ, Daniel Rosen and Thilo Hanemann note rising Chinese investment in the U.S., but warn of political obstacles.
The shift of China's growth model toward domestic consumption and increasingly intense competition at home forces Chinese firms to upgrade their technology; capture the higher levels of the value chain they traditionally conceded to foreign partners; and augment their managerial skills and staff base to remain globally competitive. Investments abroad are a way to do all this.
China's gain could also be America's gain, as demonstrated by an earlier round of Asian investments. Japanese firms had a difficult start in the U.S. in the 1980s, as they were greeted with skepticism and fear. Today, Japanese firms employ almost 700,000 Americans with an annual payroll of nearly $50 billion.
Yet, as with Japan, the high growth of Chinese investment—albeit from a tiny base—is already sparking a political firestorm in the U.S. Recent controversies have flared around various investments by telecommunications equipment supplier Huawei, as well as steelmaker Anshan in a Mississippi rebar plant, and the acquisition of small aircraft maker Cirrus by a Chinese state-owned company.
From Business Insider, Joe Weisenthal notes the Government Accountability Office has ruled the Treasury can prioritize interest payments over other spending.
In The FT, Axel Merck reports on the euro’s recent strength relative to the weak dollar.
The Hartford Courantnotes Steve Forbes advocates a stronger dollar as key to recovery.
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.
