Quote with Comment
Economy growth boils, but may be cooling
(entire story at: http://news.yahoo.com/s/ap/20060629/ap_on_bi_go_ec_fi/economy )
By JEANNINE AVERSA, AP Economics Writer Thu Jun 29
Hey Folks,
I've said it before, and I'm saying it again: the so-called business reports are totally from the perspective of the high-suck rich ginks!
This is a good example. True to form, it says things are hunky-dorey - "boiling" even. Yep, 5.6% growth; 13.8% increase in profits. Whoopie-F'n-Doooo!!!
Not until the end do you hear that workers got screwed: fewer jobs and higher interests rates from the Fed to further impact workers while protecting investors.
But who cares about the majority of people who work?
- Uke Man
WASHINGTON - The economy grew at its hottest pace in 2 1/2 years in the opening quarter of 2006 but signs suggest it has cooled since then. The Commerce Department reported Thursday that economic activity expanded at a 5.6 percent annual rate in the January-to-March period. The revised reading on gross domestic product was an even stronger showing than the 5.3 percent pace estimated for the quarter a month ago . . .
And, companies' profits continued to grow briskly. One measure of after-tax profits in the GDP report showed profits rose 13.8 percent in the first quarter. It was the second consecutive quarter of such strong growth . . .
In a third report, America's net debtor position deteriorated last year, with foreigners owning $2.69 trillion more in U.S. assets such as stocks, bonds and real estate than Americans own in foreign assets. In 2004, the investment gap totaled $2.36 trillion .
An inflation gauge closely watched by the Fed showed that core prices — excluding food and energy — rose 2 percent in the first quarter. That was the same as last month's estimate and was down from a 2.4 percent advance in the fourth quarter. [Inflation at this level kills workers with stagnant wages, but is fine for the capitalist with 13.8% profit increases ].
The inflation reading, however, was taken before oil prices shot up to a record high of $75.17 a barrel in late April. They are now hovering above $72 a barrel.
To fend off inflation, which has been creeping up, the Federal Reserve was expected to boost interest rates at the end of its two-day meeting Thursday [it DID] . The Fed's goal is to raise interest rates enough to keep inflation in check but not so much as to hurt economic activity. [i.e. keep wages and hiring down by decreasing demand for workers - by reducing the amount of money available for increased production - and thereby maintaining high profits for those who don't work - at the expense of those who do]
Job growth lost momentum heading into the summer [nothing new there].
Employers boosted payrolls by just 75,000 [fewer than the number of new workers entering the job search] in May, the fewest new jobs since October. [ yep, it's a boiling economy, and the worker is getting cooked - Uke Man]
(entire story at: http://news.yahoo.com/s/ap/20060629/ap_on_bi_go_ec_fi/economy )
By JEANNINE AVERSA, AP Economics Writer Thu Jun 29
Hey Folks,
I've said it before, and I'm saying it again: the so-called business reports are totally from the perspective of the high-suck rich ginks!
This is a good example. True to form, it says things are hunky-dorey - "boiling" even. Yep, 5.6% growth; 13.8% increase in profits. Whoopie-F'n-Doooo!!!
Not until the end do you hear that workers got screwed: fewer jobs and higher interests rates from the Fed to further impact workers while protecting investors.
But who cares about the majority of people who work?
- Uke Man
WASHINGTON - The economy grew at its hottest pace in 2 1/2 years in the opening quarter of 2006 but signs suggest it has cooled since then. The Commerce Department reported Thursday that economic activity expanded at a 5.6 percent annual rate in the January-to-March period. The revised reading on gross domestic product was an even stronger showing than the 5.3 percent pace estimated for the quarter a month ago . . .
And, companies' profits continued to grow briskly. One measure of after-tax profits in the GDP report showed profits rose 13.8 percent in the first quarter. It was the second consecutive quarter of such strong growth . . .
In a third report, America's net debtor position deteriorated last year, with foreigners owning $2.69 trillion more in U.S. assets such as stocks, bonds and real estate than Americans own in foreign assets. In 2004, the investment gap totaled $2.36 trillion .
An inflation gauge closely watched by the Fed showed that core prices — excluding food and energy — rose 2 percent in the first quarter. That was the same as last month's estimate and was down from a 2.4 percent advance in the fourth quarter. [Inflation at this level kills workers with stagnant wages, but is fine for the capitalist with 13.8% profit increases ].
The inflation reading, however, was taken before oil prices shot up to a record high of $75.17 a barrel in late April. They are now hovering above $72 a barrel.
To fend off inflation, which has been creeping up, the Federal Reserve was expected to boost interest rates at the end of its two-day meeting Thursday [it DID] . The Fed's goal is to raise interest rates enough to keep inflation in check but not so much as to hurt economic activity. [i.e. keep wages and hiring down by decreasing demand for workers - by reducing the amount of money available for increased production - and thereby maintaining high profits for those who don't work - at the expense of those who do]
Job growth lost momentum heading into the summer [nothing new there].
Employers boosted payrolls by just 75,000 [fewer than the number of new workers entering the job search] in May, the fewest new jobs since October. [ yep, it's a boiling economy, and the worker is getting cooked - Uke Man]
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