2009 could the first global recession since the 1930s, according to a UN report. But John Crooks says forex traders can use the economic slump to make big profits. He picks four currencies that will be “on the chopping block” for 2009.

This from The Sovereign Society:

The U.N. is predicting the first worldwide recession since the 1930s … for 2009. If that wasn’t bad enough, developed nations are supposed to shrink up to 1.5%. “It seems inevitable that the major countries will see significant contraction in the immediate period…even if the bail-out and stimulus package succeed,” according to the report. In other words, the recession may have spared Black Friday 2008, but next year, the worldwide recession will cut into worldwide spending even further. In the currency markets, you can already see that four currencies will suffer next year as the U.N.’s prophecy comes true…

The Four Currencies

Key News• Stocks rose in Europe and Asia and U.S. index futures climbed after China unveiled a $586 billion plan to stimulate the economy and world leaders urged more cuts in interest rates. (Bloomberg)Key Reports Due (WSJ):No economic events are scheduled for today.

Quotable “That the sun will not rise to-morrow is no less intelligible a proposition, and implies no more contradiction, than the affirmation, that it will rise.”

David Hume

FX Trading – China to the rescue—maybe!  And ChartViewChina’s new fiscal stimulus package is receiving rave reviews across the board this morning.  Bond prices lower, stocks higher, oil higher, gold higher and the dollar getting whacked—it’s déjà vu all over again for the risk appetite crowd.

Should we rejoice and jump back in to everything once bubble-icious?  Or does China’s action represent a sign of real fear and desperation as it watches its export demand crumble