World stocks retreated further from last week’s 11-month high on Monday as lower energy and commodity prices and caution ahead of a Federal Reserve meeting and G20 summit prompted investors to trim risky trades.

Has the massive Obama stimulus plan put us on a collision course with virulent inflation? It sure looks that way. Let me explain …

Senate Nixes Quick Healthcare Vote; Falling PC Sales Hurt Microsoft’s Bottom Lines; Jobless Claims Rise; Deutsche Raises Apple Outlook on iPhone Sales; Economist: Housing Market Has Hit Bottom; AT&T Profit Falls 15%; McDonald’s Profit Down; 3M Beats Expectations

Oil prices fell more than 1 percent to $63 a barrel today, Tuesday, as growing uncertainty over an economic recovery spurred investor risk aversion.  A member of U.S. President Barack Obama’s economic advisory panel said the world’s top oil consumer should plan to possibly provide a second round of stimulus funds to prop up the economy, implying that recovery is still far off.

When the Labor Department recently reported that U.S. payrolls fell by 345,000 jobs in May – the lowest total in eight months – commentators were suddenly spotting “green shoots” of economic recovery virtually everywhere they looked.

Consumer Confidence Leaps; Hong Kong Injects More Stimulus; Virgin Atlantic Sees Cloudy Skies; South Africa Enters Recession; Experts: Supreme Court Nominee Neutral on Business; Hedge Funds Bet Big on Commodities; GM Gets Labor Concessions in Canada; Russian Firm Takes $200 Million Stake in Facebook

Suddenly, and with little warning, geopolitical risk is back. With all the thundering force of an underground nuclear explosion, our heads are turned to the globe’s unstable flashpoints once again… Suddenly, and with little warning, geopolitical risk is back.

By sucking the air out of energy prices and sapping private investment, the financial crisis submarined solar energy last fall. But a silver lining has emerged around the dark cloud that has blanketed the sector for so long.

Could America be headed for a replay of the 1970s? More specifically, could America’s much-feted president wind up as the next Jimmy Carter?