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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (10688)10/27/2006 10:17:46 AM
From: foundation  Read Replies (2) | Respond to of 217588
 
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To: TobagoJack who wrote (10688)10/27/2006 10:43:19 AM
From: elmatador  Respond to of 217588
 
Economic growth slows in third quarter, worst in more than 3 years. Economic growth slowed to a crawl in the third quarter, advancing at a pace of just 1.6 percent, the worst in more than three years.

Economic growth slows in third quarter, worst in more than 3 years
Associated Press
Friday, October 27, 2006 10:07 AM
WASHINGTON (AP) —Economic growth slowed to a crawl in the third quarter, advancing at a pace of just 1.6 percent, the worst in more than three years.

The latest snapshot of the economy, released by the Commerce Department today, showed that the slumping housing market figured prominently in the economy's dramatic loss of momentum. Investment in homebuilding was cut by the biggest amount since early 1991.

The reading on gross domestic product was weaker than the 2.1 percent pace many economists were forecasting.

“The housing bubble burst and that really knocked down growth,” said Joel Naroff, president of Naroff Economic Advisors.

Gross domestic product measures the value of all goods and services produced within the United States and is considered the best barometer of the country's economic standing. Friday's report provided the last GDP reading before the Nov. 7 elections.

Economic matters are expected to influence voters' choices when they go to the polls. President Bush's approval rating on the economy is at 40 percent, among all adults surveyed in an AP-Ipsos poll. That remains near his lowest ratings. Those surveyed trusted Democrats more than Republicans to handle the economy.

The White House said it was not worried about the slowdown in economic growth.

“Everybody expected this. You have a combination of rising energy prices and also rising interest rates, and now you've seen a reverse on both,” said White House press secretary Tony Snow.

On Wall Street, though, stocks sagged. The Dow Jones industrials were off 55 points in morning trading.

The third quarter's 1.6 percent growth rate was the weakest since the first quarter of 2003, when the economy grew at a 1.2 percent annual rate.

The latest performance underscores just how much speed the economy has lost this year.

In the opening quarter, the economy grew at a brisk 5.6 percent pace, the strongest growth spurt in 2 1/2 years. But growth slowed to a 2.6 percent pace in the second quarter as consumers and businesses tightened the belt in response to the toll of rising energy prices and the impact of two-plus years of rising borrowing costs.

In the third quarter, consumers held up well, though. They boosted their spending at a rate of 3.1 percent, up from a 2.6 percent pace in the second quarter.

Businesses, meanwhile, increased spending on equipment and software at a 6.4 percent pace in the third quarter, an improvement from the 1.4 percent rate of decline in the second period.

Economists took heart that consumers and businesses — outside of the residential sector— spent solidly — which helped to cushion some of the fallout from the housing slump.

The economy's softness in the third quarter stemmed in large part from the cool down in the once-hot housing market.

Spending on home building dropped at a rate of 17.4 percent in the third quarter. That was the biggest drop since the first quarter of 1991 when such spending was sliced at a 21.7 percent pace.

Weak inventory building by businesses and the bloated trade deficit also played roles in weighing down economic activity in the third quarter.

Even with the feeble third-quarter showing, analysts didn't believe the economy was in danger of sliding into recession.

An inflation gauge tied to the GDP report showed that core prices — excluding food and energy — advanced at a rate of 2.3 percent in the third quarter, which was down from 2.7 percent in the second quarter.

Over the last 12 months, however, this inflation measure rose by 2.4 percent, the largest annual increase since 1995.

Energy prices, which had surged in the summer, have since calmed down.

Gas prices are now hovering around $2.23 a gallon nationwide, compared with more than $3 a gallon in early summer. Oil prices are now just over $61 a barrel, down from $77.03, a record high close in mid-July.

That is supposed to help ease inflation and lead to better economic activity.

Lower energy prices leave people and companies with more money to spend on other things. If they spend and invest, that adds to economic growth. Many economists believe the economy will do better in the current October-to-December quarter, perhaps clocking in close to 3 percent.

The Federal Reserve held interest rates steady on Wednesday for the third meeting in a row. The Fed had hoisted rates 17 times since June 2004 to fend off inflation. The Fed's goal is to slow the economy sufficiently to thwart inflation but not so much that it tips into recession.



To: TobagoJack who wrote (10688)10/27/2006 2:54:27 PM
From: Joe S Pack  Read Replies (1) | Respond to of 217588
 
Here is a must read for all Americans
if you want to know how bad this country has gone.
For others this is a good illustration of what hypocracy (aka American democracy) means.
Enjoy !.

-J6P

URL: rollingstone.com.

Rollingstone.com

The Worst Congress Ever
How our national legislature has become a stable of thieves and perverts -- in five easy steps


MATT TAIBBI


There is very little that sums up the record of the U.S. Congress in the Bush years better than a half-mad boy-addict put in charge of a federal commission on child exploitation. After all, if a hairy-necked, raincoat-clad freak like Rep. Mark Foley can get himself named co-chairman of the House Caucus on Missing and Exploited Children, one can only wonder: What the hell else is going on in the corridors of Capitol Hill these days?

These past six years were more than just the most shameful, corrupt and incompetent period in the history of the American legislative branch. These were the years when the U.S. parliament became a historical punch line, a political obscenity on par with the court of Nero or Caligula -- a stable of thieves and perverts who committed crimes rolling out of bed in the morning and did their very best to turn the mighty American empire into a debt-laden, despotic backwater, a Burkina Faso with cable.

To be sure, Congress has always been a kind of muddy ideological cemetery, a place where good ideas go to die in a maelstrom of bureaucratic hedging and rank favor-trading. Its whole history is one long love letter to sleaze, idiocy and pigheaded, glacial conservatism. That Congress exists mainly to misspend our money and snore its way through even the direst political crises is something we Americans understand instinctively. "There is no native criminal class except Congress," Mark Twain said -- a joke that still provokes a laugh of recognition a hundred years later.

But the 109th Congress is no mild departure from the norm, no slight deviation in an already-underwhelming history. No, this is nothing less than a historic shift in how our democracy is run. The Republicans who control this Congress are revolutionaries, and they have brought their revolutionary vision for the House and Senate quite unpleasantly to fruition. In the past six years they have castrated the political minority, abdicated their oversight responsibilities mandated by the Constitution, enacted a conscious policy of massive borrowing and unrestrained spending, and installed a host of semipermanent mechanisms for transferring legislative power to commercial interests. They aimed far lower than any other Congress has ever aimed, and they nailed their target.

"The 109th Congress is so bad that it makes you wonder if democracy is a failed experiment," says Jonathan Turley, a noted constitutional scholar and the Shapiro Professor of Public Interest Law at George Washington Law School. "I think that if the Framers went to Capitol Hill today, it would shake their confidence in the system they created. Congress has become an exercise of raw power with no principles -- and in that environment corruption has flourished. The Republicans in Congress decided from the outset that their future would be inextricably tied to George Bush and his policies. It has become this sad session of members sitting down and drinking Kool-Aid delivered by Karl Rove. Congress became a mere extension of the White House."

The end result is a Congress that has hijacked the national treasury, frantically ceded power to the executive, and sold off the federal government in a private auction. It all happened before our very eyes. In case you missed it, here's how they did it -- in five easy steps:

STEP ONE
RULE BY CABAL

If you want to get a sense of how Congress has changed under GOP control, just cruise the basement hallways of storied congressional office buildings like Rayburn, Longworth and Cannon. Here, in the minority offices for the various congressional committees, you will inevitably find exactly the same character -- a Democratic staffer in rumpled khakis staring blankly off into space, nothing but a single lonely "Landscapes of Monticello" calendar on his wall, his eyes wide and full of astonished, impotent rage, like a rape victim. His skin is as white as the belly of a fish; he hasn't seen the sun in seven years.

It is no big scoop that the majority party in Congress has always found ways of giving the shaft to the minority. But there is a marked difference in the size and the length of the shaft the Republicans have given the Democrats in the past six years. There has been a systematic effort not only to deny the Democrats any kind of power-sharing role in creating or refining legislation but to humiliate them publicly, show them up, pee in their faces. Washington was once a chummy fraternity in which members of both parties golfed together, played in the same pickup basketball games, probably even shared the same mistresses. Now it is a one-party town -- and congressional business is conducted accordingly, as though the half of the country that the Democrats represent simply does not exist.

American government was not designed for one-party rule but for rule by consensus -- so this current batch of Republicans has found a way to work around that product design. They have scuttled both the spirit and the letter of congressional procedure, turning the lawmaking process into a backroom deal, with power concentrated in the hands of a few chiefs behind the scenes. This reduces the legislature to a Belarus-style rubber stamp, where the opposition is just there for show, human pieces of stagecraft -- a fact the Republicans don't even bother to conceal.

"I remember one incident very clearly -- I think it was 2001," says Winslow Wheeler, who served for twenty-two years as a Republican staffer in the Senate. "I was working for [New Mexico Republican] Pete Domenici at the time. We were in a Budget Committee hearing and the Democrats were debating what the final result would be. And my boss gets up and he says, 'Why are you saying this? You're not even going to be in the room when the decisions are made.' Just said it right out in the open."

Wheeler's very career is a symbol of a bipartisan age long passed into the history books; he is the last staffer to have served in the offices of a Republican and a Democrat at the same time, having once worked for both Kansas Republican Nancy Kassebaum and Arkansas Democrat David Pryor simultaneously. Today, those Democratic staffers trapped in the basement laugh at the idea that such a thing could ever happen again. These days, they consider themselves lucky if they manage to hold a single hearing on a bill before Rove's well-oiled legislative machine delivers it up for Bush's signature.

The GOP's "take that, bitch" approach to governing has been taken to the greatest heights by the House Judiciary Committee. The committee is chaired by the legendary Republican monster James Sensenbrenner Jr., an ever-sweating, fat-fingered beast who wields his gavel in a way that makes you think he might have used one before in some other arena, perhaps to beat prostitutes to death. Last year, Sensenbrenner became apoplectic when Democrats who wanted to hold a hearing on the Patriot Act invoked a little-known rule that required him to let them have one.

"Naturally, he scheduled it for something like 9 a.m. on a Friday when Congress wasn't in session, hoping that no one would show," recalls a Democratic staffer who attended the hearing. "But we got a pretty good turnout anyway."

Sensenbrenner kept trying to gavel the hearing to a close, but Democrats again pointed to the rules, which said they had a certain amount of time to examine their witnesses. When they refused to stop the proceedings, the chairman did something unprecedented: He simply picked up his gavel and walked out.

"He was like a kid at the playground," the staffer says. And just in case anyone missed the point, Sensenbrenner shut off the lights and cut the microphones on his way out of the room.

For similarly petulant moves by a committee chair, one need look no further than the Ways and Means Committee, where Rep. Bill Thomas -- a pugnacious Californian with an enviable ego who was caught having an affair with a pharmaceutical lobbyist -- enjoys a reputation rivaling that of the rotund Sensenbrenner. The lowlight of his reign took place just before midnight on July 17th, 2003, when Thomas dumped a "substitute" pension bill on Democrats -- one that they had never read -- and informed them they would be voting on it the next morning. Infuriated, Democrats stalled by demanding that the bill be read out line by line while they recessed to a side room to confer. But Thomas wanted to move forward -- so he called the Capitol police to evict the Democrats.
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