Bush economy is in the toilet. Worst growth in 4 years.

[Harry Hope]

From The Associated Press, 5/31/07:
http://www.newsday.com/news/nationw...11218.story?coll=sns-ap-nationworld-headlines

Economy Has Worst Growth Since 2002

WASHINGTON (AP) _

The economy nearly stalled in the first quarter with growth slowing to
a pace of just 0.6 percent.

That was the worst three-month showing in over four years.

The new reading on the gross domestic product, released by the
Commerce Department Thursday, showed that economic growth in the
January-to-April quarter was much weaker.

Government statisticians slashed by more than half their first
estimate of a 1.3 percent growth rate for the quarter.

_______________________________________________________

Harry

 

[Perseid]

After Much Chewing of Cud and Cogitation, Harry Hope
<rivrvu@ix.netcom.com> Spat the Words

>
> From The Associated Press, 5/31/07:
> http://www.newsday.com/news/nationworld/wire/sns-ap-
newsbrief,0,1411218.s
> tory?coll=sns-ap-nationworld-headlines
>
> Economy Has Worst Growth Since 2002
>
> WASHINGTON (AP) _
>
> The economy nearly stalled in the first quarter with growth slowing to
> a pace of just 0.6 percent.
>
> That was the worst three-month showing in over four years.
>
> The new reading on the gross domestic product, released by the
> Commerce Department Thursday, showed that economic growth in the
> January-to-April quarter was much weaker.
>
> Government statisticians slashed by more than half their first
> estimate of a 1.3 percent growth rate for the quarter.

Declining (anemic) growth, rising prices.. what's that spell ?
Stagflation. Pretty soon the Fed will be forced into drastic
interest rate cuts to spur growth, foreign investors seeking
better returns than US Treasuries can offer might very well
dump US Gov't debt en mass.. then we're in deep doo doo cause
the US Gov't requires 1$$ Billion dollars of new borrowing
per day to stay in operation.

Here's an interesting piece from the head of a major endowment
talking about economics and investments.

http://money.cnn.com/2007/05/31/magazines/fortune/global_guru_erian.fortun
e/index.htm?postversion=2007053114

I specifically was drawn toward his comments about artificial
anti-inflationary pressures which could be subsiding very soon.
Here are his comments.

"The world has benefited in the last few years from two major
dis-inflationary forces that will likely diminish in importance
going forward: increased U.S. productivity and the entry of low
cost workers in the global workforce, particularly in China and
India."


>
> _______________________________________________________
>
> Harry
>