U.S. Economy Grew at 1.1% Annual Rate in 4th Quarter (Bloomberg)

[Stockholm]

Jan. 27 (Bloomberg) -- The U.S. economy limped into 2006, growing at slower-than-expected 1.1 percent pace in the fourth quarter as consumers spent at the slowest pace since 2001 and corporations limited equipment purchases.

The rise in gross domestic product, the value of all goods and services produced in the U.S., followed a 4.1 percent annual rate of increase in the previous three months, the Commerce Department reported today in Washington. A measure of inflation rose more than expected.

A drop in October auto sales pulled down consumer spending in the quarter and high fuel costs left companies cautious about upgrading equipment. Government spending fell and business investment growth was the slowest since early 2003. Economists expect improvement this quarter because business expansion is gathering momentum and consumer demand is rebounding.

``I fully expect the economy to bounce back strongly in the first quarter,'' Ken Mayland, president of ClearView Economics in Pepper Pike, Ohio, said in an interview. ``Auto sales will be stronger and inventories are still very lean, which points to a better first quarter.''

http://quote.bloomberg.com/apps/news?pid=10000006&sid=aoZvNHrABCjw&refer=home

Good comprehensive article.

[WI_DEM]

1. that's pretty anemic

but watch Matthews and the rest of the whores spin it as "temporary" and how we have a "roaring economy."

[Stockholm]

2. Yep, GDP growth by 1.1 percent

Analysts expected a growth by 2.8 percent?

I guess one have to wait another quarter to see where this is heading.

[ArmHayseed]

3. The last quarter is history

It's always the next quarter that counts.

The yield on the 2 yr treasuries are some days slightly higher than the 10 yr.

The pattern of raises of the Fed Fund Rates resemble those prior to six of the last eight recessions.

The brokers are whispering "buy on the dips" and the politicians are promising that we are on the edge of the age of plenty.

I ain't buying it!

[Global Crier]

4. United States Treasury Bonds

The United States economy is on the cusp of imploding. Anyone looking at the economic charts of the United States would realize that there is real trouble ahead. Foreigners are holding 3 trillion dollars of the 7.2 trillion dollars of the United States debt. The Bank of China bought 200 billion dollars of United States Treasury Bonds last year with a total holding of 600 billion dollar of US Treasury Bonds. Japan is holding over 700 billion dollar of the United States government foreign debt of the 3 trillion dollars. Between the United States government’s twin deficits, foreign and domestic policies there are many international leaders that are questioning the real value of the American dollar.

The value of many other countries currencies is directly connected to the value of the United States dollar. This is creating a lot of turmoil in the international financially markets with the higher price of crude oil and the weakening American dollar. The United States has led the world’s nations into the modern world. Today there are real problems and question that the people of the modern world face that have not addressed or answered. The question of the satiability of the current course of the modern world’s energy consumption, world population growth, and the standard of living of the people around the world.

Freedom and democracy without prosperity will lead to chaos. People of the world want the same things for themselves, family, community and nation. They want security, prosperity, good health, respect and a better future for their children. Today the United States government’s policies and actions are jeopardizing the prosperity and security of the international community of nations. Only by the United States government correcting and bring into balance its domestic and foreign policies will the world have a chance for peace, prosperity and security.

The United States military can win the military war by destroying the infrastructure of most of the counties in the world. While losing the economic and political struggle for peace the United States is undermining the security of the world. Today the United States is consuming too much of the world’s debt and oil for there to be enough to go around. The money borrowed and oil consumed by the United States is straining the security of the international financial markets. The overly aggressive military position of the United States has drained 100’s of billions of dollars from the world economy and American taxpayers. February 2005 Taiwan the fifth largest holder of United States debt (56 billion dollars) and South Korea fourth largest holder of 63 billion dollars of United States debt announce they want to sell some of their United States debt. The day China decides to sell their United States Treasury Bonds will be the day nobody will want to be holding the US Bonds.

The lack of balance in the financial, political and diplomatic policies of the United States has raised the level of tension around the world. Only by balancing the policies and role of the United States Government can the real problems be addressed at home and abroad. The United States Federal Government has over extended its position at home and abroad interfering with the individual rights of others. Many of the short-term policies that are serving the best national interest of the United States are at the root of the problems over the long term. Because of the inter connection of the problems so too are the answers.

Only by creating a balanced platform that can hold up to be equal for all sides will we find the answers to the problem we face. The problems we face as a nation in the community of nation will effect us all. The inhuman and unbearable conditions face by the people of one side will migrate to the people on the other side one day. If the United States wants to regain control of there own future and become a respected leader among the leaders of nations. There will have to be major changes made to the United States role and power among the community of nations. The United States government cannot preach democracy and freedom to other nations in the world while they are dictating their policies onto other nations of people in the world. A better balance is needed between the use of diplomacy and the use of military force in promoting democracy and prosperity around the world.
My Blog http://www.globalcrier.blogspot.com/