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associalisticpress.com� 23 Feb 2005

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Economic Growth Expected to Dip in 2005

By JEANNINE AVERSA (Direct descendent of Karl Marx! - tha malcontent)
AP Economics Writer Feb 23, 5:01 AM EST

WASHINGTON (AP) � Economic growth will slow this year but will still be sufficient to reduce the nation's unemployment rate, business economists say.

(ap) - As we know, most Americans only read, or hear second hand via Dan Rather (D), the headlines... Taking this Fact into consideration, why do you think that the AP would lead with a negative in the headline, as opposed to the positive that we find in the first paragraph regarding a continued reduction in unemployment? For that matter, why did they Choose to portray 3.6% growth as a negative in the first place? 3.6% is about as healthy an example of growth that anyone could ask for. They could have led this story with, "Growth to be Healthy and Stable in 2005". Most Honest Economists would agree with that assessment. They could have just as easily led with "Unemployment Picture will Continue to Improve in 2005". The reason the are talking down the Economy is simply because they will not, or cannot accept the Fact that things have improved since the 11th and since the Recession that preceded the 11th and all of it during 3/3 Control by the REPUBLICans, and a President they did not Vote for... Either time. What's the most entertaining about it, is the Fact that the "Free Press" parroted the DNC in 2000 by accusing Governor George Bush of "talking down the Economy", when in the Fact, the year-long slowdown that preceded the Recession, was going on while Bush was saying it. The difference is that Bush (43) was Factually Observing a slowdown then, while the "Free Press" Ignored it. Virtually all of the "Free Press" is painting good Economic and Employment news as bad now, while Ignoring the Facts by way of headlines. Governor Bush was Accurate in his Observation according to the numbers at the time, and the "Free Press" is doing no more than Perception Building with stories like this one 4 to 5 years later... And the Perceptions they wish to foster are not Perceptions that would help the President's Party in 2006 and 2008. Nope, no Agenda there! - tha malcontent)

In its latest economic outlook, the National Association for Business Economics predicts the economy � as measured by gross domestic product � will expand by 3.6 percent this year and next.

(Again, how can the AP be taken Seriously when they talk down 3.6% growth?... By the way, the predictions have been WAY low over the previous 2 years, so don't be surprised to see it actually be 4%+ this year! - tha malcontent)

If the projections being released Tuesday prove accurate, that would mark slowing from the 4.4 percent growth clocked in 2004, the strongest showing in five years. GDP measures the value of all goods and services produced within the United States and is considered the broadest barometer of the country's economic health.

(It's funny, I don't remember the AP reporting about such "strong growth" last year... I wonder why?... Oh yeah, that kind of Honesty would have garnered Kerry about 43% of the Vote, instead of the 48% he ended up losing with last fall! - tha malcontent)

"Economic growth in 2005 will moderate but still be solid," said Carl Tannenbaum, chief economist at LaSalle Bank and head of the committee overseeing the economic forecast.

(I will bet you money that the AP did not report on 3.6% Growth as "moderate" during Clinton! - tha malcontent)

One reason economists give for the expected moderation this year is the belief that a red-hot housing market will cool and mortgage rates will rise. Consumer spending and business investment this year are expected to be solid and to help support economic growth, according to the outlook.

(Good news after good news after good news... Again, go back and read the title of this "news report". - tha malcontent

Forecasters anticipate that the unemployment rate � which averaged 5.5 percent last year � will dip to 5.2 percent this year and then to 5.1 percent next year.

(I am betting that it will be down to 4.8% by years end... We will see! - tha malcontent)

On the inflation front, consumer prices are expected to rise 2.2 percent this year and 2.3 percent next year. Consumer prices for all of 2004 increased 3.3 percent, the largest rise since 2000.

(Inflation was not bad in 2004, and will improve greatly in 2005... Where was this "news" last fall during the Election? - tha malcontent)

A deceleration in consumer prices this year is based partly on the expectation that energy prices, which surged last year, will calm down. Forecasters are predicting a barrel of crude oil will cost around $40 at the end of this year, compared with $48 a barrel at the end of 2004.

(If Inflation was consistently applied to the price of gas, we would be paying at least twice what we pay now for a gallon. That considered, the price will drop this year. Bush got the blame via the "Free Press" as gas prices rose... Will he get the credit for them dropping?... Don't hold your breath! - tha malcontent)

The forecast was compiled before Friday's release of a government report that showed wholesale prices � excluding food and energy costs � soared in January by the largest amount in more than six years. A government report on consumer prices for January will be released Wednesday.

For all of 2004, wholesale prices went up at a faster pace than consumer prices. Some companies, not wanting to turn off buyers, were reluctant to pass along all of their higher costs to consumers, analysts explain.

Federal Reserve Chairman Alan Greenspan, appearing before Congress last week to deliver the central bank's twice-a-year economic outlook, offered a relatively positive view of the economy and the nation's pricing climate.

(It would have been nice if the "Free Press" reported a "relatively positive view of the economy" last fall! - tha malcontent)

"The evidence broadly supports the view that economic fundamentals have steadied," Greenspan said. "All told, the economy seems to have entered 2005 expanding at a reasonably good pace, with inflation and inflation expectations well-anchored."

(Bush (43) on Algore Junior: He's "Pathologically a Liar"... Sorry, I had to! I am fully aware that it is about as out of context as something can be, but the AP once reported on Aschroft's Nomination and referred to Ashcroft as the "Conservative" who was beaten by a "dead man" in the 2000 Senatorial Elections, so I thought I would use the AP standard of reporting! - tha malcontent)

Fed policy-makers, wanting to make sure inflation doesn't get out of hand, embarked on a rate-raising campaign in June. That has resulted in six, modest quarter-point increases, leaving a key interest rate at 2.50 percent.

That key rate is expected to rise to 3.5 percent by the end of this year, according to the business economists. If that were to happen, the prime lending rate, used for many short-term consumer and business loans, would rise to 6.50 percent by year's end. The prime rate, which moves in lockstep with the Fed's key rate, is currently 5.50 percent.

(That will have a cooling effect on new investments... But it's reasonable considering. We wouldn't want any "Irrational Exuberance" to surface again as it did just before the bust at the end of Clinton's final term. What was it that Clinton did again to cause the longest expansion in History? After all, the Expansion started in March of 1991, and Clinton did not take the Oath of Office until January of 1993... Oh yeah, he didn't do a Damned thing to start the longest period of expansion in History. He did, on the other hand, leave a year-long slowdown and a Recession 40 days after leaving Office. A Recession that took place almost entirely under his final Budget. Not only did he not create the Expansion, he didn't even maintain it. But you won't here the Facts presented that way by his Cheerleading Squad in the "Free Press"! So many Economic Lies by the "Free Press"... So little time! - tha malcontent)

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