Euro goes back and forth over 1.43…Eurozone unemployment rises to 9.2%…Australia’s GDP surprises! Is it protectionism? And Now… Today’s Pfennig!

Good day… And a Wonderful Wednesday to you! I’m draggin’ the line today, as I was helping my oldest son, Andrew, with things in his brand, spankin’ new house, last night. Congrats to Andrew, for finding a great bargain, with a low, fixed, interest rate!

OK… Whew! What a day in the currencies yesterday! Another day, and another day of wild swings.. Volatility is the name of the game these days… Watching, for instance, the euro trade down to 1.4220, and then up to 1.4320 and not just on a one-way ticket! Oh No! this is a bounce here a bounce there… But just like it was going from 1.41 to 1.42, it took a few times over the 1.42 figure before it finally stuck, and headed to 1.43… All the other

As the worst financial crisis since the Great Depression continues to worsen, decades of deregulation and the growing independence at the state level are being reversed as a deteriorating national economy forces the federal government to increasingly take on responsibilities that no other institution has the power or resources to handle.

This dismantling of the so-called “New Federalism” will be readily apparent again this week as the federal government is once again at the forefront of the most-closely watched  crisis-fighting initiatives at hand: With Congress pushing forward on an $827 billion stimulus plan and the Treasury Department planning to unveil its new banking bailout blueprint on Tuesday, economists and other experts say the federal government is taking its biggest role in the economy in a generation.

States that once pushed away from the federal government as part of the New Federalism are now essentially begging

“Deflation now, inflation later” is how Bill Bonner sees this crisis evolving. For now, US dollars protect you from falling asset values. But don’t get too attached: when the inflation bubble begins, the greenback will be tossed aside, and gold will fly.

More from Bill in The Daily Reckoning:

Deflation? What does that remind you of, dear reader?

Japan! Of course. This is the trend your editor saw coming 10 years too soon — a Japan-like slump.

“A deep and prolonged recession could raise the spectre of deflation of the sort that long plagued the Japanese economy,” says a fellow at the American Enterprise Institute.

“Welcome to Hiroshima, mon amour,” was how we put it, with Addison Wiggin, in our 2003 book, “Financial Reckoning Day.”

“If the United States were to repeat the Japanese experience, stocks could be expected to return to their 1995 trend line, with the Dow below

The following excerpt comes from The New York Times of September 30, 1999:

“Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

“In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the saving and loan industry in the 1980’s.

“‘From the perspective of many people,

Glassman, one of Kiplinger’s regular contributor’s and a  Senior Fellow at the American Enterprise Institute, identified companies that he believes are ripe for buying, because, as he writes, “Every investor has a chance to become a partner in some of the best global companies since they are going at a discount”.  And, “Rarely have such clearly excellent companies been available at such clearly terrific prices.”:

1. Pfizer (PFE)

a. medicine is shifting to long-term drug therapies

b. baby boomers are entering their 60’s

c. developing world is getting richer

d. stock trades at 8x 2008 projections and 6.5% dividend yield- dividends have risen 41 years in a row

e. though some of their drugs are facing the prospects of generics soon, the macro factors are too good to ignore.

f. price is 1/3 of what it was in 1999

2. Boeing (BA)

a. Dominant aerospace company in the world

b. A++ rating

c. last year’s Return on Equity was