Interesting Inflation News Links (March 1, 2009)

* CBO projects deficits as high as $11.5 trillion over decade (Humberto Sanchez, Government Executive)

CBO projected on Tuesday that the budget deficit would be about $1.4 trillion in fiscal 2009 and $8.7 trillion in 10 years if the recently enacted $787 billion stimulus is taken into account and several other policies are assumed — policies similar to those expected in President Obama’s fiscal 2010 budget outline due out on Thursday.

* Outrageous: Baghdad Boondoggle (Reader’s Digest)

At the peak of the Iraq war, with billions of U.S. dollars pouring into their country, a group of Iraqi men saw a way to get rich quick. They put up $2,000 in cash, formed a company named Al-Aian Al-Jareya, and used their connections at Iraq’s defense ministry to win an $850 million military equipment contract.

* Merkel, EU reject bailout for eastern Europe (Constant Brand)

European Commission President Jose Manuel Barroso, right, shares a word with European Central Bank President Jean Claude Trichet prior to a meeting at EU headquarters in Brussels, Sunday March 1, 2009. With their economies tanking and finances fraying, EU leaders meet Sunday keen to show that they will stick together and work on ideas of how to put recession behind them.

* Chavez to send troops to another rice-processing plant (Tyler Bridges, Kansas City Star)

Government troops will occupy Venezuela’s biggest rice-processing plant Monday, President Hugo Chavez announced Sunday, as the socialist leader expanded his crackdown on private companies that evade government price caps on their products.”They call me a tyrant and a dictator,” Chavez said, referring to his opponents. “But I’m here to safeguard the public and follow the constitution.”</p…

* Venezuela’s Chavez sends troops to rice firms (Newsweek)

CARACAS, Venezuela – President Hugo Chavez on Saturday ordered troops to temporarily seize control of all Venezuelan rice processing plants to ensure they produce at full capacity amid soaring inflation and persisting reports of food shortages.

* For investors, gold isn’t all that glitters (Baltimore Sun)

Gold is where investors go when they are scared – scared about war, scared about economic meltdowns or scared about runaway inflation.

* Memory chip maker Spansion files for bankruptcy (Emily Chasan, Reuters America)

NEW YORK, March 1 (Reuters) – Spansion Inc , a U.S. maker of flash memory chips, sought bankruptcy protection on Sunday, becoming the latest chip maker to succumb to falling prices in the memory chip market and a deepening recession.

* Mugabe’s lavish bash as country starves (ITN Online)

President Robert Mugabe has thrown himself a lavish birthday party and used the event to call on Zimbabwe’s last white farmers to leave.

* Bank of England set to pump cash into economy to avoid deflation (Times Online)

The Bank of England is set this week to begin printing money in a ground-breaking move that will mark its most forceful action yet to curb the slump in the economy.

* Gold unlikely to pan out in the long run (Morning Call)

Gold is where investors go when they are scared–scared about war, scared about economic meltdowns or scared about runaway inflation.

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