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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: benwood who wrote (11490)	9/7/2004 9:13:07 PM
From: mishedlo	Respond to of 116555

Hyperinflation? Dream on, Debtors news.goldseek.com

To: benwood who wrote (11490)	9/7/2004 9:16:05 PM
From: mishedlo	Respond to of 116555

Greenspan to voice concern about deficit outlook Tuesday, September 7, 2004 9:19:02 PM afxpress.com WASHINGTON (AFX) -- Federal Reserve Board Chairman Alan Greenspan is expected to repeat his warning Wednesday that the long-term deficit outlook is deteriorating, but his words will fall on deaf ears in the current election season, analysts said "Bottom line, he will have no impact," said Stan Collender, managing director of Financial Dynamics and a longtime budget watcher Greenspan, in fact, looks set to get caught in a political food fight between Republican and Democratic members of the House Budget Committee Democrats are going to argue that the Bush tax cuts have not worked because job growth is sluggish, and Republicans will argue that the tax cuts allowed the economy to recover "Greenspan is going to walk a narrow tightrope," Collender said The Congressional Budget Office estimated that the budget deficit for this fiscal year will be a record $422 billion. Robert Greenstein, the director of the Center on Budget and Policy Priorities, estimated in a press conference that the budget deficit over the next 10 years may approach $4.5 trillion "The fiscal picture is a disaster," Collender said "There is no prospect of returning to a surplus for a decade," he added Fiscally conservative members of both parties will "want Greenspan to repeat that the spending side of the budget needs to be restrained and the long-term deficit estimates are too big," said L. Douglas Lee, an analyst with the firm Economics from Washington Greenspan "can probably be prompted to say those things again -- he's said them before," Lee added "Greenspan keeps expressing concern with the long-term fiscal picture. I'm not sure I'd expect anything new in what he says," Greenstein said House and Senate Republicans are pressing ahead with plans to pass a $130 billion proposal that would extend several of President Bush's expiring tax cuts for five years The proposal would extend popular tax breaks including the $1,000-per-child tax credit and a benefit for married couples Bush wants to make all the provisions of the 2001 and 2003 tax cuts permanent Democratic candidate John Kerry has said he plans to repeal tax cuts for families earning more than $200,000 Analysts said the more important news from the Fed chairman should be his discussion of the current economic outlook Greenspan is widely expected to be upbeat about the economic outlook, cementing expectations of another quarter-percentage-point rate hike on Sept. 21. This story was supplied by CBSMarketWatch. For further information see www.cbsmarketwatch.com