The Consumer Price Index (CPI) decreased by 1.3 during the 12 months ending in May, according to data released last week by the Bureau of Labor Statistics. This was the largest decline since 1950. It’s also a huge swing from a year ago, when the rate of price inflation topped five percent.

The American Clean Energy and Security Act of 2009 sponsored by Reps. Henry Waxman (D-California) and Edward Markey (D-Massachusetts) recently passed out of committee and is now before the full House of Representatives. The centerpiece of the Waxman-Markey Bill is cap and trade, a mechanism devised to penalize the use of hydrocarbon fossil fuels based on their emissions of carbon dioxide (CO2). Carbon dioxide is thought by many to be a major contributor to global warming.

The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, signed into law in May, will come into effect February 2010.

The World Health Organization (WHO) declared on June 11 that it has classified the rapidly spreading H1N1 swine flu virus as a pandemic event, the highest level of intensity on its six point scale of severity. WHO applies that classification only when a dangerous pathogen appears on a significant scale in numerous countries and at least two major world regions. As of mid-June, almost 30,000 cases of H1N1 infections and 144 related deaths have been confirmed in 74 countries around the world.

Since August 2007 official estimates of current federal budget deficits have soared from about $100 billion to well over $1 trillion. By one reckoning, about 46 cents of every dollar of federal spending this year will be financed by borrowed money—not tax revenue.

Taxpayers are already bailing out auto companies and banks and, before this recession is over, they’ll be bailing out public pension plans. These plans are losing money by the millions and billions—a $1 trillion loss combined—but that doesn’t mean retired government employees will see their pensions shrink.

The Obama Administration has said it places a high priority on spending Federal stimulus money to maintain or create jobs in the economy, including in the auto industry. A major reason behind this push is payback for the financial support American labor unions have given to the Democratic Party over the last two decades.

We no longer hear quite as much about the credit crunch as we did last year. This does not necessarily mean that credit became more easily available to businesses. Another explanation is that firms have changed their behavior regarding borrowing.