Interesting Inflation News Links (February 11, 2009)

* Illinois/Wisconsin briefs

MADISON, Wis. — Wisconsin’s minimum wage would increase $1.10 per hour under a bill passed by the state Senate.

* Bank of England Governor Mervyn King says UK economy is in ‘deep’ recession (Angela Monaghan, Telegraph)

The risks to the economy remain “heavily weighted to the downside,” the Bank of England said today in is its gloomiest assessment so far. The speed of deterioration is accelerating, the Bank said in its latest Quarterly Inflation Report, and the economy may shrink by 4pc by the middle of thus year. Inflation will drop to 0.5pc at the end of next year, it added.

* World stocks fall on bank bailout jitters (Newsweek)

HONG KONG – World stock markets dropped Wednesday, following a steep sell-off on Wall Street , as investors reacted with skepticism to the U.S. government’s latest plan to rescue the ailing financial industry with as much as $2 trillion in funding.

* King paints gloomy picture of UK economy in ‘deep recession’ (Hamish Macdonell, The Scotsman)

In its latest quarterly forecast, the Bank made a dramatic downward revision to its growth forecast � predicting the economy could shrink by as much as 4 per cent in the summer and remain in recession for the bulk of 2009.

* The Sketch: Just when it can’t get worse for Gordon… it does (The Independent Online)

It must be worse than we know. And it is probably worse than the PM knows. But what he knows must be enough to do any normal head in. He must have seen risk assessments of unemployment at four million. And GDP shrinking by 15 per cent. He must have walked into the chamber yesterday with projections from his COBRA staff of runaway inflation, food rationing, armed IMF officials marching into the …

* Bank chief: UK in deep recession (Mirror)

Bank of England governor Mervyn King has said the UK economy is in a “deep recession” but the length and depth of the slowdown would depend to a “significant extent” on the rest of the world.

* Despite OPEC, oil prices fall

NEW YORK Oil prices fell Monday as another round of poor company earnings and job cuts tempered an OPEC announcement that dozens of production projects were being tabled.

* Economy could shrink by 4%, warns Bank (Sam Fleming, The Daily Mail)

Pound tumbles after Bank governor warns Britain is in a deep recession and economy could shrink by 6%

* What Happens If China’s, Russia’s Economies Fail? (Barrett Sheridan, Newsweek)

The symptoms of financial meltdown so faremaciated 401(k)s, bankruptcies, layoffshaven’t been easy to handle in the U.S. But Americans aren’t the only ones feeling the pain. Anger over the worsening global economy boiled over last week resulting in protests in Greece, France, Latvia and Britain. At issue are rising prices, shrinking incomes and the disappearance of jobs. Fears that economic u…

* Obama: Reagan or Hoover? (The Arkansas Traveler)

Early in his first term, Ronald Reagan faced the problem of runaway inflation, which had been hurting Americans for decades. He knew he could fix it by letting the Federal Reserve System make some adjustments to the credit market, but he also knew this move would result in a short-term spike in unemployment.??


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