Interesting Inflation News Links (February 6, 2009)

* MPs step up clash with Bank of Japan (Michiyo Nakamoto, The Financial Times)

A plan to print some Y50,000bn ($546bn) worth of a new currency to fund pump-priming projects has been drawn up by influential politicians in Japan in a sign of desperation in the ruling Liberal Democratic party over the countrys failing economy.

* What Falling Prices Are Telling Us (Peter Coy, BusinessWeek)

What Falling Prices Are Telling Us The world is awash in goodsand government programs to spur spending won’t be enough to balance supply and demand

* CBO Says Stimulus Bad for the Economy (Marc Thiessen, National Review)

CBO says stimulus bad for the economy: CBO on Wednesday released an analysis that estimates the impact the Senates $1.3 trillion bill will have on the American economy. Ahem: In the longer run, the legislation would result in a slight decrease in gross domestic product (GDP) compared with CBOs baseline economic forecast . In the short run, it will create between 1.3 and 3.9 million j…

* Global Perspectives: Chavez a threat to meaningful progress (The Greyhound)

Venezuela’s controversial leader, Hugo Ch�vez, is apparently a strong advocate of socialist principles, yet contradicts his political ideologies with authoritarian tendencies. Ch�vez has been known for impulsively criticizing capitalist nations, provoking unnecessary tension with neighboring countries and consequently jeopardizing the security of his nation, engaging in populist economic polici…

* Land once subject of Disney rumors now focus of suit (Silicon Vly Business Journal)

Two related Dallas commercial real estate companies have been sued by investors who claim the firms and principal Harry Beau Lucas Jr. duped them into buying northeast Denton County land at inflated prices by stating a prominent national developer is planning a project in the area.

* ‘Bad bank,’ raw deal, a better idea (Shawn Tully, Money)

NEW YORK (Fortune) — No matter how it operates, a government-run “bad bank” is bound to be disastrously bad. It would be hard to design a plan more certain to fail at achieving the three main goals in salvaging the nation’s banking system: boosting banks’ capital, protecting taxpayers, and avoiding nationalizations.

* Bank hints more rate cuts to follow (The Financial Times)

Borrowing costs still have further to fall after the Bank of England cut UK interest rates by another half a percentage point to hit a 315-year low of 1 per cent, economists forecast on Thursday.

* How to save it (The Financial Times)

In a land with no credit, the man with cash is king. Money is the only thing in high demand around the world. Governments have tried to damp this clamour. They introduced fiscal stimuluses to encourage people to spend. Central banks slashed interest rates to reduce the pressure to save. Quite right too: helping hoarders is less important than rescuing the economy. People with nest eggs to guard…

* Letter: Return to a doctrine of fairness (Republican-Eagle)

There has been heated dialogue during the past several months, engaged in by conservative Republicans and the wealthy, that there is an attempt to engage in � class warfare� and � redistribution of the wealth� of this country on behalf of the poor and middle class. These efforts have been astonishingly described as � socialism.�

* The Coming Inflation Nightmare for 02/02/2009 (Creators Syndicate)

The central economic crisis of the next five years may not be the greed-induced worldwide depression in which we are now mired. Indeed, it may well be the rampant global inflation the politicians’ response to that depression will inevitably trigger. Depressions, or recessions, come and go. But inflation has the potential to stick around for decades.


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