Grand Theft Economics
By Adam Tanner
Reuters
Thu Jan 5, 2006 9:11 PM ET
By Adam Tanner
Reuters
Thu Jan 5, 2006 9:11 PM ET
Fri, 06 Jan 2006 12:00 EST
SACRAMENTO - A year after picking a bitter fight with legislators that he ended up losing at the polls, Gov. Arnold Schwarzenegger unveiled a massive 10-year spending plan on Thursday aimed at winning back Californian support ahead of his November re-election effort.
Addressing legislators in his annual "state of the state" address, the Republican governor proposed $222.6 billion in spending on schools and infrastructure over the next decade that would include a record $68 billion of new debt.
By Geoff Dyer in Shanghai and Andrew Balls in Washington
Financial Times
January 6 2006 02:43
By Geoff Dyer in Shanghai and Andrew Balls in Washington
Financial Times
January 6 2006 02:43
Fri, 06 Jan 2006 12:00 EST
China indicated on Thursday it could begin to diversify its rapidly growing foreign exchange reserves away from the US dollar and government bonds a potential shift with significant implications for global financial and commodity markets.
Economists estimate that more that 70 per cent of the reserves are invested in US dollar assets, which has helped to sustain the recent large US deficits. If China were to stop acquiring such a large proportion of dollars with its reserves currently accumulating at about $15bn (12.4bn) a month it could put heavy downward pressure on the greenback.
Comment: Comment: In this article, we see that the economic picture is nowhere near as rosy as Snow claims. The Bush government has been telling us that there's nothing wrong with the US economy for years now, even though countless analysts and investors - including Warren Buffett and Bill Gates - have bailed on the dollar. Suffice it to say that at this point, joining the Bush gang in their wishful thinking is not the wisest course of action when it comes to the future of the US economy...
AFP
Friday January 6, 4:23 PM
AFP
Friday January 6, 4:23 PM
Fri, 06 Jan 2006 12:00 EST
Treasury Secretary John Snow denied that China has the United States in an economic stranglehold but renewed demands for greater currency flexibility from Beijing.
Addressing a call-in show on the C-SPAN television network, Snow was asked whether China's heavy holdings of US government bonds left Washington vulnerable if Beijing were to flex its military or diplomatic muscles.
"No, I don't think so, and I don't think that's the way it would play out," the Treasury chief said.
"Remember, people who own US securities have an interest in seeing that paper, whether it's equities or debt paper, sustain its value," he said.
Comment: Comment: It's funny that Snow believes the US is "on the right course", especially considering the following article:
www.chinaview.cn 2006-01-05 09:13:22
www.chinaview.cn 2006-01-05 09:13:22
Thu, 05 Jan 2006 12:00 EST
BEIJING, Jan. 5 -- China took another step towards currency flexibility on Wednesday by letting banks set its daily opening foreign-exchange rate, a change that might allow the yuan to move much faster than previously possible, the Reuters reported.
The new system, the latest in a long line of policies aimed at gradually freeing up the yuan, accompanied the introduction of open over-the-counter trading that will eventually replace the current system of anonymous and automatic order matching.
The changes, announced late on Tuesday, went into operation on Wednesday.
Last Updated Wed, 04 Jan 2006 14:52:38 EST
CBC News
Last Updated Wed, 04 Jan 2006 14:52:38 EST
CBC News
Thu, 05 Jan 2006 12:00 EST
Canadians are feeling optimistic about the country's economy, but the picture changes dramatically when it comes to their personal expectations, a new poll indicates.
About two-thirds of the 1,260 people polled in early December said they believed the economy is in a period of strong or moderate economic growth, the Pollara polling company reported Wednesday.
But only 11 per cent said they expect their household income will rise more than inflation this year, while a third said they will lose ground and just over half anticipate that they will break even.
All those figures are better than in the poll taken a year ago; the groups expecting they will do better or keep pace are larger, while the proportion expecting to lose ground has shrunk.
Last Updated Wed, 04 Jan 2006 17:49:12 EST
Last Updated Wed, 04 Jan 2006 17:49:12 EST
Thu, 05 Jan 2006 12:00 EST
It was a Cadillac of a year for General Motors Canada, and for some of the other companies that sell luxury cars.
But it was a record-breaking year for sales of the cars made by companies based outside Canada.
DesRosiers Automotive Consultants calculated the Canadian market grew 3.2 per cent last year, to 1.58 million vehicles. Import sales jumped 5.1 per cent, three times the growth rate of sales of the North American brands produced by General Motors, Ford and DaimlerChrysler.
Comment: Comment: Even in bad economies, luxury items still sell well. What does that tell us?
By Martin Hickman
Consumer Affairs Correspondent
03 January 2006
By Martin Hickman
Consumer Affairs Correspondent
03 January 2006
Tue, 03 Jan 2006 12:00 EST
* 66,000 people predicted to go bust this year;* Average household debt is £7,650 (exc. mortgage);* Two-thirds of EU credit card debt is British;* One in five students owes at least £15,000;* 40% of women keep debt secret from partners;* Half of all heavy debtors suffer from depression
By KATHY BARKS HOFFMAN
Associated Press
Sun Jan 1, 8:53 PM ET
By KATHY BARKS HOFFMAN
Associated Press
Sun Jan 1, 8:53 PM ET
Tue, 03 Jan 2006 12:00 EST
LANSING, Mich. - Thirty years ago, Dan Fairbanks looked at the jobs he could get with his college degree and what he could make working the line at General Motors Corp., and decided the GM job looked better.
He still thinks he made the right choice. But with GM planning to end production of the Chevrolet SSR and shut down the Lansing Craft Centre where he works sometime in mid-2006, Fairbanks faces an uncertain future.
BY DAVID KOENIG
AP Business Writer
Mon Jan 2, 2:55 PM ET
BY DAVID KOENIG
AP Business Writer
Mon Jan 2, 2:55 PM ET
Tue, 03 Jan 2006 12:00 EST
DALLAS - The U.S. airline industry is coming off an up-and-down year that saw two major carriers file for bankruptcy but others begin to pull out of a nosedive that began in 2001. Losses at the biggest U.S. airlines since the economic downturn in 2001 were expected to approach $30 billion. Still, 2005 was nearly a good year.
Some companies, including the parent of American Airlines, the largest U.S. carrier, could have turned a profit if fuel prices hadn't shot so high. Some airlines narrowed their losses by sharply cutting costs other than fuel, including wringing wage concessions out of their workers.
Some analysts think 2006 will be a pivotal year.
Comment: Comment: If the airline industry's financial problems existed in a vacuum, then sure, consolidation might just solve everyone's problems. Unfortunately, the industry's difficulties are not unique; they are part of a much larger economic picture that doesn't look too bright as 2006 starts rolling.
By DERRILL HOLLY
Associated Press
January 2, 2005
By DERRILL HOLLY
Associated Press
January 2, 2005
Tue, 03 Jan 2006 12:00 EST
CHANTILLY, Va. - Independence Air, which won fans with its low fares, announced plans Monday to cease operations just days into the new year.
The carrier said its money troubles will force it to cancel all departures after 7 p.m. Thursday. The end came less than 19 months after the airline's first takeoff.
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