The economy is now staring eyeball-to-eyeball with an activist U.S. government. It will legislate, reform, supervise, bully, give out money like cotton candy and get concessions in return.

John Crooks says currencies dependent on commodities are in for a very tough 2009. He says weak global demand and a marked slowdown in China will keep commodity prices low. And that’s bad news for resource-rich Australia. John says a looming recession, widening trade deficit and interest rate cuts will send the Aussie dollar plummeting this year.

IMF set for sharp cuts in global growth forecasts… February contract expires up 6 percent on short-covering… Focus on bearish demand; U.S. crude stocks data seen up…

Alcoa Cuts 13% of Workforce; Best Buy to Sell Used iPhones; Jobs’ Statement Earns Apple Upgrade; India Exports Slowing Dramatically; Europe Inflation at 2-Year Low; U.S. Still Innovation Leader; Belarus to Secure IMF Aid

The economic calendar wastes no time getting off to a busy start in the first full week of 2009.  The Construction Spending report for November this morning leads off the week, and carrying over from last year, it should show a continued slowdown. Until the housing market stabilizes, and the credit markets unfreeze, money simply won’t be spent on new construction. Since neither of those options looks likely to occur anytime soon, 2009 could be another long year for the construction industry.

Dollar up vs yen as BOJ warns of further export woes…  Euro gains broadly; doubts about U.S. auto bailout loom… Market expects ECB rate cut; policy-makers seem divided

The Fed goes for broke – and the rest of the country follows…there are really only two ways out of this mess… Instead of inflation, we’re getting deflation…Gideon Gono can show the Fed how to use these ‘new tools’… Some sage advice for Obama…the SEC does not fight fraud, it aids and abets it…and more!

Best Buy Profit Falls 77%; Goldman Sachs Posts $2.12 Billion Loss; New Permits and Starts at Record Low; Brazil Retail Rises 10.1%; Berkshire Buys NC Real Estate Brokerage; Crude Slides in Spite of OPEC

All around the world this Friday, investors are wringing their hands. The papers are full of the cause. More job losses. Slower growth. Bankruptcies. Debt.  There. Don’t you feel better now?

ur “Obama Rally” forecast… will things “get worse before they get better” or vice versa?… Print in the doghouse… Tribune Co., New York Times and McClatchy looking desperate… Still no bottom in sight for housing… foreclosure, refi and pending home sales data all down… Anecdotal evidence of tough times to come… Wiggin house, office burglarized… Chris Mayer with a sector sell-off that’s gone too far