Weekend update.

At The Daily Reckoning, Nathan Lewis explains gold’s rise is due to the dollar’s collapse.

On NRO, Larry Kudlow predicts low growth and rising inflation will hurt Democrats on Election Day.

CNBC reports that the European Central Bank and the Federal Reserve are pursuing different strategies:




In Fortune, Nin-Hai Tseng chides China bashers for scapegoating an important trade partner.

At Super-Economy, Tino rebuts Paul Krugman’s claim that reduced revenue, not surging spending, accounts for the deficit:



At RCM, Harvard’s Jeffrey Miron explains why Keynesian stimulus is ineffective.

The WSJ editorial page analyzes the on-going malaise.

This [poor recovery] contrasts with all other recent recoveries, which climbed out of recession much faster to reach a new peak. Nearby we update our table contrasting the recovery of the early 1980s with the current one. We cite the 1980s because that contraction was comparably deep and the jobless rate reached an even higher peak of 10.8%. Yet after five quarters of recovery in the 1980s, the economy was roaring ahead at a greater than 8% annual pace. This time the rebound reached 5% for one quarter before decelerating to today's non-cruising speed.

The neo-Keynesians who designed the 2009 stimulus reject this comparison, saying that the recent recession was uniquely awful because it was rooted in financial distress. Whatever truth there is in this financial diagnosis, it also conveniently absolves Democrats from responsibility for the damage done by their policies. Never mind the uncertainty and costs imposed by ObamaCare, onerous new federal regulations on banks and other industries, record spending and deficits and the threat of cap and tax, union card check, and the huge tax increase looming on January 1. We are supposed to believe that none of this matters because a lousy recovery was foreordained by the financial crisis.

If the midterm election polls are right, the American public isn't buying this economic determinism. They don't like 2% growth and 9.6% unemployment, and on Tuesday they'll get a chance to declare what they really think about what we would call the new abnormal.

Weekend round up.

Progressive James K. Galbraith explains the recession caused the high deficit.

Jon Stewart features Keynesian Nouriel Roubini arguing unemployment insurance is stimulative, while Stephen Colbert interviews Paul Krugman on austerity.

Fareed Zakaria praises Britain's spending cuts and tax increases.

Keynesian Joe Lazzaro believes supply-side economics has failed.

From the archives, Paul Craig Roberts discusses the breakdown of the Keynesian model.

Kati Suominem assesses the state of the dollar.

The Weekly Standard's Fred Barnes advises the GOP to follow Paul Ryan's policy road map.

Liberal Robert Reich argues income inequality caused the financial crisis.

CNN's Rick Sanchez mocks opponents of raising taxes on the rich.

The NY Times sees Turkey as a rising economic power.

Tuesday round up.

Stanford's Ronald McKinnon defends China on the yuan.

Historian and Econoclasts author Brian Domitrovic debunks What's the Matter with Kansas?

Louis Woodhill predicts a double dip recession.

John Tamny suggests New York defaulting on its debt wouldn't be bad.

Brian Wesbury analyzes the June employment report.

Don Boudreaux rebuts the claim that manufacturing is declining.

David Brooks thinks demand side economics is washed up.

Paul Krugman disagrees.

Progressive Michael Lind argues the American people want more spending.

Thursday round up.

On The Kudlow Report, David Stockman wants full-fledged fiscal austerity (spending cuts + tax cuts).

Kudlow comments further on the discussion.

John Tamny analyzes Paul Krugman's solutions to the recession.

From last week, Alan Reynolds responds to Ezra Klein on stimulus.

In The WSJ, Seth Lipsky explains how much salaries have declined in terms of gold.

In an April interview, George Gilder hopes Tea Parties will stress tax cuts not spending cuts.

David Wessell reports free trade's comeback.

CEO Ziad K. Abelnour argues we need the rich.

National Review's Kevin D. Williamson regrets extension of the homebuyer's tax credit.

U.S. Rep. Scott Garrett (R-NJ) suggests Fannie Mae and Freddie Mac is the root cause of the subprime crisis.

Liberal economist Josh Bivens makes the case for growth over deficit phobia.

Former Treasury official John B. Taylor opposes the financial reform bill.

Monday round up.

In The WSJ, Steve Forbes refutes Hillary Clinton's claim that the rich don't pay their fair share.

Larry Kudlow suggests lower spending is the road to economic growth.

John Tamny sees government accountability as a one-way street.

Don Luskin translates the FOMC's latest report.

Terence Corcoran points to pressure on China to raise the yuan as protectionist.

In Forbes, Reihan Salam predicts a slow-growth decade.

A Crains columnist reports on an Art Laffer speech.

Russ Roberts claims Hayek is more relevant today than Keynes.

Ambrose Evans-Pritchard expects inflation.