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That horrible Bush economy.....
[QUOTE][B]Inflation Has Best Showing in 3 Years
Updated 11:15 AM ET January 18, 2007
By MARTIN CRUTSINGER [/B]
WASHINGTON (AP) - The Labor Department reported Thursday that consumer prices rose by 2.5 percent in 2006, the best showing since prices had increased by just 1.9 percent in 2003. The improvement came in spite of the fact that consumer prices jumped 0.5 percent in December, as gasoline prices staged a momentary rebound.
The slowdown in inflation translated into more spending power for Americans. The government said average weekly earnings for non-supervisory workers rose by 2.1 percent last year, after adjusting for inflation. That was the biggest gain in nine years.
Inflation-adjusted weekly earnings had fallen for three straight years, a development that Democrats argued in last fall's election campaigns showed that President Bush's economic policies were not working for the middle class.
In other economic news, the number of newly laid off workers filing claims for unemployment benefits fell to a seasonally adjusted 290,000 last week, the lowest level in 11 months and an indication that the labor market began the new year in good shape in spite of weakness in housing and auto manufacturing.
Meanwhile, the Commerce Department reported that construction of new homes rose by 4.5 percent in December to a seasonally adjusted annual rate of 1.642 million units, raising hopes that the worst of the housing slowdown may be coming to an end.
However, analysts cautioned that the figure was heavily influenced by warmer-than-normal weather last month.
The 0.5 percent December increase in consumer prices had been expected, given that gasoline costs rebounded during the month. However with crude oil prices setting 19-month lows in recent weeks, the expectation is that gasoline costs will resume their downward trend and stay well below the record level of over $3 per gallon, set last summer.
For all of 2006, energy costs rose 2.9 percent, a significant slowdown after an increase of 17.1 percent in 2005 and 16.6 percent in 2004. That price moderation occurred in recent months. After advancing at a 22.8 percent annual rate in the first six months of 2006, energy costs fell at a 13.4 percent rate in the final half of the year.
The moderation in energy in the second half of last year helped lower the overall price increase to 2.5 percent, down from a gain of 3.4 percent in 2005, which had been the biggest price jump in five years.
Core inflation, which excludes volatile energy and food costs, rose by 2.6 percent in 2006, up from gains of 2.2 percent in both 2004 and 2005. That was the fastest increase since a 2.7 percent rise in 2001.
The Federal Reserve has been watching the performance of core inflation closely for signs that the surge in energy costs in recent years was breaking out to more widespread inflation troubles.
In an effort to prevent that from occurring, the Fed raised interest rates at 17 consecutive meetings as a way of slowing overall growth enough to keep inflation under control.
Analysts believe the central bank could start cutting interest rates by this summer if core inflation continues to show improvement.
The report on the Consumer Price Index offered good news on that front, showing that core inflation was rising at an annual rate of 1.4 percent in the final three months of the year, just half of the 2.8 percent rate of increase turned in during the July-September quarter. It was the best showing of the year.
Copyright 2006 The Associated Press. All rights reserved. This
President George W. Bush
The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
Dear President Bush,
I just wanted to congratulate you on the outstanding job you're doing on the Ameican economy. Clearly your leadership and strong commitment to tax cuts have benefited our economy, Ameican business on-the-whole, and all American workers.
Here's the rub. Iraq!
We have, what - 130,000 US troops in Iraq? Why did you send them there?
The country is in total chaos because Islamic cavepeople shoot each other, blow each other up, decapitate 13 year old school girls, drill holes in each other's heads until death, and a sundry of other unspeakable behavior that make Nazis and the Viet Cong look like innocent Girl Scouts.
The attention-deficit-disorder Iraqi cavepeople do this in large part because we don't do much to stop them!
All I ever see/hear US troops do is patrol (police) various areas of Iraq. So, why are our troops in Iraq? They don't seem to be doing a whole lot to defeat the 'insurgent' enemy. We have a lot of trained Non-Commissioned Officers, Warrant Officers and Junoir Officers who are trained to...shall we say 'discretely quell' situations like this. Where are they? Why aren't they being used? (You know that I know that they're not being used.) Don't you realize by now that your policital-correctness is costing us this war?
It's time you gave the American people a reason feel good about themselves, Mr President. Why is Osama Bin Laden still alive? It's been over five years since 9-11 and I find it entirely unacceptable that OBL has not been caught. OBL being alive and free underscores to me, President Bush, that you do not possess the guts to "win the war on terrorism". You are a just as good (bad) at political expedience as your predecessor, Bill Clinton.
So, thanks for the way happenin' economy. However, you still need to have Osama Bin Laden and his Islamic lieutenants pay with their lives for what they did to us on 9-11.
You also need to allow the US military sink their teeth into the so-called insurgents in Iraq so we can WIN and get the heck out of there.
A NY-JETS Fan And Military Veteran in New York's Capital City
Even though, over the past 40 years, Social Security, Medicare, and Medicaid have collectively become the largest component of the federal budget ([i]see[/i] [url="http://www.cbo.gov/showdoc.cfm?index=3521&sequence=0#figure1"][i][color=#800080]Figure 1[/color][/i][/url] [i]and[/i] [url="http://www.cbo.gov/showdoc.cfm?index=3521&sequence=0#table1"][i][color=#800080]Table 1[/color][/i][/url]).
Social Programs, Not the Military, or whatever else you think.
And you must have been born yesterday, not years ago when the
Democrat President/Congress ran up huge deficits without wars and
Maybe its due to the increased market price of world oil,
of which they are our biggest supplier?
Spending little $ on their own national defence, but still
being defended by the USA?
Maybe, just maybe, their economy is doing better?
mexican pesos coming here? Es verdad?
as Garden State Parkway tokens, perhaps.
mexican oil is coming here, at market rates for sure
but Mexicans wire $40 Billion US back to their adobes.
maybe with a cheaper exchange people from other
lands will vacation here and spend money here in America
for a change instead of vice versa...think that can that really happen?
dunno about you, maybe at minimum wages it dont
mean much, but i seem to be taxed at a lower rate
to have more discretionary income to spend in America with prices staying stable and lower taxes (well, some of them anyway)
or to spend less money outside of the country because
foreign goods are 20% more costly...wow...thats a tough choice right there
Last edited by flushingjet; 01-18-2007 at 10:51 PM.