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Politics : WHO IS RUNNING FOR PRESIDENT IN 2004 -- Ignore unavailable to you. Want to Upgrade?

To: calgal who wrote (5557)	10/17/2003 1:44:42 AM
From: calgal	Respond to of 10965

Encouraging economic news Several reports on recent economic activity suggest that the long-anticipated acceleration of the growth rate has occurred. The Federal Reserve issued its Beige Book Wednesday, which reported that "the pace of economic expansion has picked up." Also, the Commerce Department reported that retail sales increased at a 12.2 percent annual rate during the July-September period. Yesterday, the Fed reported that during the third quarter, total industrial production grew at a 3.3 percent annual rate. Manufacturing output, which had fallen during each of the three previous quarters, increased at a 2.9 percent rate last quarter. Meanwhile, the Labor Department reported yesterday that initial claims for unemployment benefits fell to an eight-month low. These favorable reports buttress the view among an increasing number of economists that the growth rate for the July-September quarter probably exceeded 5 percent. And that pace for the just-completed quarter appears to have provided significant momentum for the fourth quarter. Specifically, the Fed reported that consumer spending "generally strengthened." The Fed's survey among its district banks also found "broad-based strength" in residential real estate and construction. But commercial real estate markets remained "sluggish." The Fed reported that most service industries have shown improvement. A majority of the Fed's districts reported "a pickup in manufacturing activity, with several indicating significant improvement in a wide variety of industries." Perhaps signaling a rebound in the weakened technology sector, demand for semiconductors increased. However, reports about capital spending remained decidedly mixed. A majority of business contacts in several districts "cite• hesitation and lackluster [capital] spending plans going forward." While the Fed described the labor markets in most districts as "slack," it noted "modest signs of improvement in a number of districts," including some employment gains in the manufacturing sector. On balance, the Fed's latest Beige Book offered encouraging economic news. Meanwhile, with the S&P 500 stock index having increased by nearly a third since its recent cyclical low in March, households will notice continued growth in their third-quarter 401(k) reports, a fact that should contribute to consumer spending. Politicians increasingly look to 401(k) valuation growth as an indicator of public support for economic conditions. If strong economic growth persists through the end of the year and into the spring, as many economists expect, business investment will likely rebound, and labor markets, which saw an increase in nonfarm employment in September for the first time in eight months, will show improvement.

To: calgal who wrote (5557)	10/17/2003 1:47:16 AM
From: calgal	Read Replies (2) \| Respond to of 10965

Bush plan on rebuilding Iraq nears final Hill OK By Stephen Dinan THE WASHINGTON TIMES Both houses of Congress yesterday backed President Bush's rebuilding effort in Iraq, as each turned back efforts to make the administration change its policy in exchange for Iraq-reconstruction money. The Senate, on a 57-42 vote, defeated an amendment that would have required the president to meet benchmarks for international cooperation and come back to Congress with reports on progress before receiving half of the rebuilding funds that the administration has requested. Meanwhile, a similar attempt in the House fell on parliamentary-procedure grounds. Still to come was a vote in the Senate on whether to make the reconstruction money a loan to Iraq, rather than a grant, as the administration and Republican leaders want. Passage of the $87 billion Iraq spending bill, which replenishes military supplies, funds the global war on terror and spends about $20 billion to rebuild Iraq, is assured. Both Republican and Democrat leaders expect a sizable vote in both the Senate and House in favor of the bill. Instead, the question facing members is the form the bill will take — particularly the $20 billion designated for rebuilding Iraq. The House was expected to take a final vote overnight on the bill, while the Senate planned either an overnight vote or a vote today. Yesterday, though, both chambers rejected efforts to force Mr. Bush to change his policy and turn over rebuilding tasks to other nations. Sen. Robert C. Byrd, West Virginia Democrat, and Sen. Edward M. Kennedy, Massachusetts Democrat, proposed releasing $10.1 billion in reconstruction funds now, and requiring the president to come back in six months to receive the other $10.2 billion for rebuilding. In particular, Mr. Bush would have had to show he had obtained more international help. Mr. Byrd said the six-month check would allow Congress to make "a midcourse correction" if U.S. efforts in Iraq were going poorly, and Mr. Kennedy said failing to change policy would give Mr. Bush too much of a free hand. "I am not prepared to give a blank check. I think this [bill] is a blank check to the administration," Mr. Kennedy said. "This is putting Iraqi policy on a glide path over the next year, because there are sufficient funds in here to carry all the way through next year, and the Congress will not have a voice or an opportunity to affect that decision." But the proposal failed 57-42, with six Democrats joining all of the chamber's Republicans in opposing it. Sen. Ted Stevens, Alaska Republican and chairman of the Senate Appropriations Committee, said to force a change of policy now would derail progress in Iraq by tying the president's hands. "What I fear most is the loss of momentum in the program that's being pursued," Mr. Stevens said. In the House, Rep. David R. Obey, Wisconsin Democrat, offered a similar amendment to internationalize the rebuilding effort and pay for U.S. involvement through a tax increase on the top 1 percent of U.S. taxpayers. The amendment was ruled out of order. That left many Democrats saying they would vote against the overall bill, arguing that they could support the troops while opposing the president's request. But House Majority Leader Tom DeLay, Texas Republican, said that "isn't going to cut it this time." "If you support the war, and you support the troops, you must vote for this bill," he said. "A 'no' vote on this bill is a 'no' vote on the war on terror and will serve to undermine our coalition. If you oppose the war, feel free to vote 'no,' but at that moment, the American people will know for sure who is working to win the war on terror." The House also was denied an opportunity to vote on a Republican-sponsored plan to make half the reconstruction money a no-interest, long-term loan to Iraq, rather than a grant.