In a free market, demand is always a function of price: The higher the price, the lower the demand. What may surprise most politicians is that these rules apply equally to both prices and wages. When employers evaluate their labor and capital needs, cost is a primary factor.

A quick glance at the calendar this week and an instant case of nausea should set in. The week is not only overloaded with reports, but only a few are expected to show improvement.

The U.S. economy shed 693,000 jobs in December, a showing that was far worse than economists had expected and that may even have been the biggest monthly loss of jobs in more than 30 years, analysts said of a closely watched survey of business employment released yesterday (Tuesday).

The number of Americans filing new claims for jobless benefits rocketed to a 26-year high last week, surpassing already gloomy forecasts, as the U.S. economy sinks deeper into recession.

In the currency market, the dollar was slightly lower against the euro. Late Monday, the euro was trading at $1.5642 vs. $1.5625 on Friday. Traders breathlessly await the Federal Reserve’s critical decision, with sentiment still running strongly in favor of another cut.