Larry Kudlow

President Obama took his declining dollar to the Asia-Pacific economic conference, and he added to it a declinist opinion of America's economy. His big message? Don't count on American consumers to lead the world from recession to recovery and beyond. His second big message? In the United States, we must save more and spend less.

Against the backdrop of high unemployment and a public revolt against a Democratic health-care bill — which would significantly increase taxes, slash Medicare spending, and massively raise health-care spending elsewhere in a government takeover of our leading growth sector — the Republicans swept the Virginia and New Jersey gubernatorial races.

Dow Jones 10,000 arrived on Wall Street Wednesday for the first time in a year. It's a milestone of sorts, and it certainly represents a vote for investor confidence in economic recovery. Blowout profit reports from Intel and JPMorgan helped fuel the day's 145-point gain. So did a retail sales report that excluding Cash for Clunkers was actually quite strong. But storm clouds are gathering.

There's a simple policy mix the White House could adopt to fix the economy. It could enact the Mundell-Laffer supply-side approach of a steady King Dollar for price stability and low marginal tax rates to spur jobs and economic growth.