U.S. consumer prices fell in November at the fastest rate since 1932, the darkest days of the Great Depression, the Labor Department reported Tuesday

MarketWatch.com reported the following today:

“U.S. consumer prices fell in November at the fastest rate since 1932, the darkest days of the Great Depression, the Labor Department reported Tuesday, as prices for energy, commodities and airline fares plunged across the country.

The U.S. consumer price index fell by a seasonally adjusted 1.7%, the department reported, the biggest drop since the government began adjusting the CPI for seasonal factors in 1947.
But on a non-seasonally adjusted basis, the CPI fell by 1.9%, the biggest decline since January 1932, at the nadir of the Great Depression. Read MarketWatch First Take commentary.
“This is scary stuff,” said Mike Schenk, an economist for Credit Union National Association. “We are teetering on the brink of a massive downward spiral. Deflation is a threat.”
The seasonally adjusted core CPI was flat in November. Read the report.
Economists surveyed by MarketWatch were expecting the CPI to fall by 1.4%. They forecast that the core CPI would rise by 0.1%. See Economic Calendar.
Energy prices declined by a seasonally adjusted 17%, the most since February 1957. Gasoline prices plunged by 29.5% in November, the most since the government began keeping records in February 1967. Fuel oil prices dropped by 7.2%. Commodities prices declined by 4.1% in November.
The CPI data is one of the last pieces of the economic puzzle that the Federal Reserve will have to mull before its announcement about interest rates later Tuesday. The policy-making Federal Open Market Committee is almost universally expected to cut its target for overnight interest rates to 0.5% from 1%….”
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McCain, Obama release statements on largest monthly US job loss report in 5 years

Statements by Republican John McCain and Democrat Barack Obama on Friday’s jobs report from the Labor Department. In a sign that the economy is hurtling toward a deep recession, employers slashed payrolls by 159,000 in September, the most in more than five years.

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McCain’s Statement:

Today’s report of another 159,000 lost jobs confirms what America’s working men and women have understood for months: Our nation’s economy is on the wrong track. It is imperative that Congress act to address the financial crisis while protecting taxpayers and being good stewards of their dollars. But we must do more.

America’s middle class needs help from a government that is truly standing on their side and not in their way. I am committed to getting to the roots of this crisis — reforming Washington and cleaning up the mess created by the greed and crony capitalism of government-backed mortgage giants — Fannie Mae and Freddie Mac. I will reverse out-of-control spending, end the wasteful and corrupting practice of earmarks, and get the government budget back to balance. I will reform health care to control costs and better serve American families, open markets around the globe for our products, cut taxes, and expand domestic production of energy to eliminate the ability of international oil markets to hold our economy hostage. I will create jobs and get the economy on the right track.

Unlike Sen. Obama, I do not believe we will create one single American job by increasing taxes, going on a massive spending binge, and closing off markets. Our nation cannot afford Sen. Obama’s higher taxes. — John McCain

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Obama’s Statement:

Today, Americans woke up to the sad news that 159,000 jobs were lost last month alone, making September the ninth straight month of job loss. With three-quarters of a million jobs lost this year, and millions of families struggling to pay the bills and stay in their homes, this country can’t afford Sen. McCain’s plan to give America four more years of the same policies that have devastated our middle-class and our economy for the last eight.

Instead of Sen. McCain’s plan to give tax breaks to CEOs and companies that ship jobs overseas, I will rebuild the middle-class and create millions of new jobs by investing in infrastructure and renewable energy that will reduce our dependence on oil from the Middle East. I also call on Congress to pass an immediate rescue plan for our middle-class that will provide tax relief, save 1 million jobs, and save our local communities from harmful budget cuts and painful tax increases. — Barack Obama.