Weekend Reading

An Ode to Oil (WSJ) America's oil dependency has some benefits. Roger Howard on how the diminishing resource acts as a source of stability, and forces countries to work together.

What Would Keynes Have Done?  (Mankiw, NYT) In 1936, Keynes wrote, "Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slave of some defunct economist." In 2008, no defunct economist is more prominent than Keynes himself.  -  Interesting, esp coming from Mankiw.

Global Trends 2025 (National Intelligence Council) To borrow a summary of the interesting 120-page report: the world in 2025 will see a wane of American power. China, India and Russia are predicted to increasingly challenge US influence in every aspect, and the next 20 years will see a period of transition to this new system. Sure, the US will remain the single most important actor, but it will be less dominant. The EU and Japan will face a far steeper decline. Mexico will become older and immigration from South America to the US will slow. Dwindling energy resources and scarce water supplies will be the two greatest causes of conflict.  -  Although DNI reports tend to reflect the conventional wisdom of specific foreign policy groups, it's greatest value is often in framing questions and cataloging issues.