* The Economic Need for Stable Policies, Not a Stimulus [Extended version] (Jeffrey D. Sachs, Scientific American)

The U.S. political-economic system gives evidence of a phenomenon known as instrument instability. Policy makers at the Federal Reserve and the White House are attempting to use highly imperfect monetary and fiscal policies to stabilize the national economy. The result, however, has been ever-more desperate swings in economic policies in the attempt to prevent recessions that cannot be fully …

The country isn’t in desperate straits. It wants $20bn (�13.5bn) from the International Monetary Fund. The facility would be only a precautionary flexible credit line, similar to Mexico’s. Such a line, granted to countries with policies that the IMF deems sound, provides a backstop to existing foreign exchange reserves.

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Amid the recession’s body-slam on stock-market prices, Sen. Orrin Hatch has introduced a bill to increase significantly the amount of capital losses that individual taxpayers may deduct in a year.

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* Shop price inflation falls on slower food prices (James Thompson, The Independent Online)

Shop price inflation fell in April for the first time since the cut in VAT in December, as hefty non-food discounting at Easter, sharp price deflation at fashion and footwear retailers and the first slowdown in food prices this year gave customers a welcome boost.

* 1.7 million fewer pints drunk every day this year due to recession (Harry Wallop, Telegraph)

In the first three months of this year the equivalent of 1.67 billion pints of beer were drink in Britain a fall of 8.2 per cent, or 1.7 million pints a day on the first quarter of last year.

* New Study Accuses Bankruptcy Judges Of Routine Illegality (Nathan Koppel, Wall Street Journal)

Bankruptcy lawyers are fat and happy these days; that much we have documented. (Click here and here .)

* Hey, Hell’s Kitchen! Suck It! (Patrick Alan Coleman, Portland Mercury)

Ive been known to watch an episode or two of Hells Kitchen . Im not proud of it. But as the Bible says, Let those whove never suffered bad television judgment throw the first remote.

* China fears bond crisis as it slams quantitative easing (Ambrose Evans-Pritchard, Telegraph)

policy mistake made by some major central bank may bring inflation risks to the whole world,” said the People’s Central Bank in its quarterly report.

* Fed, Bernanke mulled unconventional options in ’03 (Jeannine Aversa, News Tribune)

Ben Bernanke has done something no other Federal Reserve chairman has done before: cut rates to near zero and resorted to unconventional tools to lift the country out of recession.

* Rich Lowry: Obama, Bush have one thing in common: Bold, risky agenda (Rich Lowry, Sacramento Bee)

If Barack Obama’s presidency were to end on Day 101, it would be a smash success. He’s popular, the nation’s mood is lifting, he’s adored abroad, and he has already put his stamp on economic policy.

* Getting SS? Plan for no “raise” in 2010 (Andrew Chan, Boston Globe)

It was recently announced that the 50 million people currently receiving social security benefits would see no cost of living increase in their payments for 2010. This would be the first time in over 30 years that there was no such increase and it comes on the heals of a 5.8 percent increase in 2009 — the largest increase in over 25 years.

* More homes get multiple offers; downturn may be nearing end (Mary Altaffer, USA Today)

More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.

* Romania Lowers Rates by Half Point (Christopher Emsden, Wall Street Journal)

Romania’s central bank cut interest rates more than expected Wednesday, lowering the official policy rate to 9.5% from 10% in a cautious bid to help revive economic growth.

* Gold moves higher as dollar falls, stocks rally (Sara Lepro, Kansas City Star)

* Is v-shaped shares chart wildly optimistic? (Ian Mc Connell, The Herald)

* Reasons to be cheerful parts one, two, three and four (Hamish Macdonell, The Scotsman)

* WMC wants more for prisoner care (Tom Morton, Star-Tribune)

* Index-linked savings on a roll… for now (Jeremy Gates, Lancashire Evening Post)

* Some TIPS Looking Strong Right Now (Brett Arends, Wall Street Journal)

* The Analyst: All roads lead to infrastructure (Ben Yearsley, The Independent Online)

Chief Constable Mick Creedon, Janet Birkin, chairman of Derbyshire Police Authority, and MPs from across the county met with Local Government Minister John Healey and Policing Minister Vernon Coaker on Tuesday to present their case against the proposed budget cap.

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* Council examines school budget (Adam Leech, Rockingham News)

The City Council said it heard the message from parents who spoke last week in support of an increase in the school budget, but it’s also listening to other residents who want it to hold the line.

* Congress working to change estate tax (Kathleen Pender, San Francisco Chronicle)

Under current law, the estate tax will disappear in 2010, then rise from the dead in 2011 in a gruesome state – estates of more than $1 million per person would be taxed at rates as high as 55 percent.

* Quad Area breaks ground on Veterans Village (Brennan David, Daily Star)

The last project Winnie Sibley started before her death in 2007 was a homeless veterans program larger than Quad Area Community Action Agency could ever dream up.

* Questor: Extract some more value out of Randgold (Garry White, The Daily Telegraph)

The gold price has a significant effect on the share price of Randgold Resources and Questor feels that the recent dip in prices is an ideal time to take a position in the shares.

Markets shrugged off a steady barrage of grim U.S. economic news to push oil prices above $35 a barrel Thursday, with a drop in the dollar encouraging investors to buy crude.

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* Beware Bursting Fitness Balls (Miranda Hitti, CBS News)

Beware Bursting Fitness Balls If Fitness Balls Are Overinflated, They Can Explode; EB Brands Issues New Inflation Instructions

* Why Manchester United’s justification for ticket price rises is an insult (Ian Winwood, Mirror)

One of the few silver linings in the grey cloud of a recession is that you can at least be sure that the cost of living will not rise.

* Five financial decisions all retirees must make (Maggie Shoobridge, Mooresville Tribune)

When you’re working, you have a financial strategy that is largely based on one goal: saving money for a comfortable retirement. You’ll likely have to make many adjustments over several decades to ensure that you stay on track saving and investing. But once you retire, a new goal arises � investing so you can remain retired. To help yourself achieve this goal, you will need to make a number of…

Talk to most homeowners and they will tell you they are horrified at the way their houses are plunging in value.

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