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[pdx5]

oil is hovering around $100 a barrel, 50% higher than its level last May. A recent study by economist James Hamilton notes that 10 of the last 11 recessions were preceded by sharp increases in the price of oil. Looking at other countries, 2nd biggest economy, China has not just rising oil prices, but also sharply rising food prices, as well as the potential for rising wage inflation. So China has been raising interest rates and tightening monetary policy so aggressively some experts worry it will bring its globally important economy in for a hard landing. 3rd biggest economy, Japan recession is already a reality. And no, it's not due to the earthquake/tsunami disaster. Japan's economy fell back into recession in the 4th quarter of last year, its GDP negative by a sizable 3.0%. This week Japan reported its economy remained in recession in the 1st quarter of this year, negative by 3.7%, and it's expected the earthquake/tsunami disaster in March will have it even more negative in the current quarter. In Europe, already Greece, Ireland, Portugal, and Spain are mired in, or are near, recessions. The 16-nation euro-zone will fall back into recession this year, under the burden of the required fiscal austerity measures (cuts in government jobs and spending) needed to tackle the record budget deficits. In Brazil and India, the world's seventh and tenth largest economies, inflation is already potentially out of control, running at roughly 7% a year in spite of each nation having raised interest rates eight times over the last year. .......excerpted from article by Sy Harding, editor of the Street Smart Report, and the free market blog, www.streetsmartpost.com .