Weekend edition: The NYT quotes Bell and Lehrman on gold; Forbes on two important dates; Lewis says gold is not deflationary.

In The NYT, Jeff Sommer quotes Jeff Bell and Lew Lehrman on rising interest in the gold standard, but commits the error of discounting gold’s price for inflation:

The last apex of the back-to-gold movement was perhaps in 1980. It may have been a signal that the price of gold was about to peak. Could we be approaching a turning point now? “You could make that argument,” Mr. Bell says. “The big question is whether the government and the Federal Reserve will be able to get the economy under control without a return to gold.”

In Forbes, Steve Forbes advises the President to heed two important dates.

Also at Forbes, Nathan Lewis explains that gold is stable, not deflationary.

On The Kudlow Report, US Rep. Eric Cantor recounts that debt-ceiling negotiations broke down because the President insisted on tax increases:




At Forbes, Peter Ferrara notes the expected tax increases in 2013 and elimination of the Fed’s duel mandate.

On Forbes, Reuven Brenner suggests the Federal Reserve is mispricing credit.

This week’s winner of the Kevin Williamson Shooting-Inside-the-Foxhole Award goes to fractional reserve banking opponent Gary North at lewrockwell.com, for his harsh attack on sound money advocates Robert Mundell and Ralph Benko.

Speaking of Williamson, last week the National Review author once again muddied the waters by rebuking pro-growth advocates including fellow NR columnist Larry Kudlow.

On Kudlow, my old roommate Tim Carney debates the debt ceiling:




In The WSJ, author Margaret Hoover suggests a “jobs, jobs, jobs” agenda will win the GOP young voters.

Reagan brought an entire generation to the Republican Party in 1980, and in 1984 he won the youth vote by 20%. The GOP needs this kind of revolution again if it hopes to recapture the White House and create a sustained majority.

The Washington Post continues the media’s fascination with anti-tax advocate Grover Norquist.

In Business Week, David J. Lynch reports that Republicans embrace Art Laffer’s tax ideas.

The WSJ notes GOP candidate Michelle Bachmann suggesting lower income workers should pay higher taxes.

Long weekend update.

In The Washington Examiner, Timothy P. Carney has an important piece on the financial interests behind the China currency debate.

At New World Economics, Nathan Lewis explains why stable money is vital.

At the Kudlow Report, Stephen Moore and Robert Reich debate demand vs. supply-side policies:

At Forbes, Robert Lenzner sees President Obama as more Carter than Reagan.

At Zero Hedge, madhedgefundtrader wonders if Steve Forbes will run for president as a Tea Party candidate.

Also on Kudlow, John Rutledge analyzes the market:

Friday items.

The WSJ has a must-read editorial warning congressional Republicans to focus on restoring growth rather than fighting deficits.

What CBO's latest apocalyptic report doesn't stress is what we'd call the more important deficit in its forecast: the growth deficit. CBO predicts an annual rate of GDP growth of 2.2%. Yet since 1959 the U.S. economy has grown at an average rate of 3%, and during the 1980s and 1990s it was closer to 3.5%. The compounding effect of restoring this faster pace of growth would mean far more net national wealth and would certainly make debt repayment easier.

Even Mr. Obama's current spending level of 25% of GDP would be more manageable if the slow economic recovery weren't keeping tax revenue at unusual lows. In 2007, the economy threw off revenue of 18.5% of GDP. That fell to 14.8% in 2009 and may not be too much higher this year. The point is that there is no hope of balancing the federal budget without a return to higher levels of economic growth.

On The Kudlow Report, Art Laffer discusses gold, the dollar, and the economy.

The WSJ’s Kimberley A. Strassell doubts free trade is making a come back.

On MSNBC, The Washington Examiner’s Tim Carney suggests that Republicans blocking unemployment benefits is bad politics.

Paul Krugman continues to worry about reduced spending.

At NRO's Corner, Samuel R. Staley sees a lost decade coming.

My view is, with the Dow stuck at 10,000 and gold having quintupled since 2001, we've already lost this decade.