Today, Ben Bernanke proposed another fiscal stimulus package for the wilting economy. More evidence that we’re living in a Keynesian world, says Bill Bonner. When the private sector falters, the government is ready to pick up the slack. And it doesn’t matter how much it costs. Bill says trillion-dollar deficits are on the way, and that’s bad news for the US dollar.

Consumer prices held steady as the credit crisis took a toll on the sluggish U.S. economy and dampened inflation. The Labor Department announced yesterday (Thursday) that the Consumer Price Index (CPI) was unchanged in September after declining 0.1% in the prior month.

Remember when America was going to hell in a hand basket if Congress didn’t pass Hank Paulson’s bailout bill? Well, guess what? Congress did pas the bill, and the markets have been sliding ever since. Justice Litle says that’s because Pualson’s bill was a fudge…and a poorly sold one at that.

Gloom, Boom & Doom report editor Marc Faber last week cast doubt on the effectiveness of the coordinated interest-rate cuts by international central banks. He said “artificially low interest rates” were the main cause of the credit-market turmoil in the first place. Mr. Market may have different ideas. Stocks are way up today.

The European Central Bank is “purposely causing inflation” and is therefore insane, says The Mogambo Guru, Richard Daughty. The mission of the central bank is to control inflation. Of course, it’s all the more reason to buy gold and silver now.

Global markets had deep sell-offs yesterday (Tuesday) as short-term credit markets remained tight, with the three-month lending rate for banks hitting a yearly high.

How about those wily veteran central bankers? They all got together and decided to cut rates. The Reserve Bank of Australia (RBA) went first with their 100 BPS cut, and opened the rate cut sea for the rest of the central banks around the world. The European Central Bank, The Riksbank (Sweden), Swiss National Bank, Bank of Canada, Bank of England, and the Bank of China all lined up at the rate cut table. The Bank of Japan, The Norges Bank (Norway), and Reserve Bank of New Zealand did not participate.

Central banks around the world yesterday (Wednesday) announced a coordinated reduction of their respective interest rates in a bid to restore investor confidence and put an end to the worst market rout since the Depression era. However, analysts and investors alike are skeptical that even the largest coordinated effort by central banks since Sept. 11 will be enough to save the economy from a severe recession.

Yen trades to 98! Carry Trades unwinding hurt high yielders… Gold rallies back to $900! Central Bank rate cuts…. And Now… Today’s Pfennig!

The feds are pulling out all the stops to end the rout in financial markets. On top of the Hank Paulson’s pork-laden bailout bill, the Fed is pumping hundreds of billions into the global financial system. It has even started buying up short-term commercial paper.

Today, the Fed joined other major central banks in a surprise and unprecedented coordinated rate cut. Still, US stocks open sharply lower.

William Patalon III says the Americans “have less money to spend … and are spending more for less.” He gives three reasons why the US is plunging into recession.