The stagnation of the Japanese economy in the past 20 years is eloquent testimony to the fact that government usually gets it wrong. Sometimes it makes the wrong decision because it fails to anticipate the market (as Japan did when it downplayed laptop computers and stressed mainframes).

The financial interdependence of the world's banks is like the interlocking alliances that predated World War I.

As Bob Dole found out, you can't keep a positive image while being your party's mouthpiece in Congress. That's why no legislative leader since James Madison has ever been elected president.

The most pernicious of his [Obama] proposals will be the massive Make Work Pay refundable tax credit. Dressed up as a tax cut, it will be a national welfare program, guaranteeing a majority of American households an annual check to 'refund' taxes they never paid. And it will eliminate the need for about 20% of American households to pay income taxes, lifting the proportion that need not do so to a majority of the voting population.

Now a great debate has been born. The thesis is Democratic Socialism. The antithesis is free-market capitalism. The Obama Democrats have posed the challenge. It is now up to the Republicans to pick it up and fight along these lines.

The typical presidential staff resents the vice-president even more than they do the first lady.

How, voters will ask, can we cover 50 million new people without any new doctors or nurses? The answer is to ration health care, with the U.S. government deciding whom will get hip and knee replacements, heart bypass surgery and all manner of medical treatments. And what does rationing mean? It means that the elderly will be denied care, which they can now get whenever they want it.