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Cato Studies on U.S. Economy

This is an Archive File click for latest News or Archive 2003 or 2005

Sunday Mar 23, 2003 Lewinsky to present dating show
Lewinsky has been designing handbags
Former White House intern Monica Lewinsky, who caused a scandal over her affair with then US president Bill Clinton, is to present a TV game show.
Lewinsky has been lined by US network Fox to front dating show Mr Personality.

2002

Sunday Dec 29, 2002 OTTAWA: POLL REVEALS GROWING DISTRUST OF US A public opinion poll suggests that a chill had developed in Canada-US relations. It's a long way from the empathy and support that characterized the relationship following the terrorist attacks of September 11th, 2001. Although almost half of those Canadians surveyed agree the United States has a responsibility to intervene in the affairs of other countries to protect global security, almost seven out of 10--67 per cent--believe the US is "starting to act like a bully with the rest of the world."The Strategic Counsel survey indicates Canadians are ambivalent about the threat posed by Iraq and are strongly opposed to backing a US-led war on Saddam Hussein with Canadian fighting units. At the same time, a majority--53 per cent--said Canada should provide some non-combat support, such as food and transportation, regardless of whether the UN Security Council approves the attack.

Wednesday Dec 25, 2002
Bush Seeks Increase in National Debt Limit The Bush administration asked Congress to approve another increase in the limit on national debt, saying it will run out of the authority to borrow money by late February.

Wednesday Dec 18, 2002 nyt
Bush Ordering Missile Shield If it works, the modest antimissile system could intercept a limited attack from a state like North Korea.

Wednesday Dec 18, 2002 cbc
U.S. MISSILE SHIELD A 'GO' DESPITE SHORTCOMINGS The U.S. will start deploying a missile defence system in 2004, even though the defence secretary admits the technology won't be fully developed by then.

Wednesday Dec 18, 2002 TORONTO: CDN. $ SOARS
The Canadian dollar closed on Tuesday at its highest level in five years in trading against the U.S. dollar. Canada's currency rose by more than half-a-cent US to close at 64.57 US. An analyst with the Bank of Nova Scotia cited by the Canadian Press news agency attributes the development to a negative mood by investors toward the U.S. currency. Economist Aaron Gampel also says the Canadian dollar's rise reflects higher prices for oil and natural gas. He also noted that the decision by the Dominion Bond Rating Service to upgrade the Canadian government's credit rating to its highest level has helped the dollar. see w-n chart | see w-n Canada/US file

Monday Dec 9, 2002 nyt
California Is at Fiscal Brink
With its huge economy stalled and state revenues plunging, California has descended into its worst budget crisis in a decade and is now facing an excruciating round of budget cuts and possible tax increases.
State officials are proposing deep reductions in education, health services and other programs to deal with a budget shortfall that could total $25 billion in the next 18 months. [thanks David Mitchell]

Monday Dec 9, 2002 nyt
New Economic Policy There are nine things President Bush should do to combat the current beat of the doldrums. ...Forget blaming the Clinton bubble; focus on fixes

Monday Dec 9, 2002 nyt
QUOTE OF THE DAY "That's a hole so deep and so vast that even if we fired every single person on the state payroll every park ranger, every college professor and every Highway Patrol officer we would still be more than $6 billion short." HERB J. WESSON Jr.,the California Assembly speaker, on the state's budget.

Saturday Dec 7, 2002 nyt Paying a Political Price for a Shaky Economy In removing the leaders of his economic team, President Bush signaled that not even a popular wartime president can ignore the political peril of a weak economy

QUOTE OF THE DAY
"There are lots of other important things to do inlife."
PAUL H. O'NEILL,in announcing his resignation as Treasury Secretary.

Wed Dec 04 2002 U.S. Consumer: Healthier Than You Think
The U.S. economy should enjoy decent growth next year: no big acceleration, but also no big consumer retrenchment phase ahead.
The current issue of the monthly Bank Credit Analyst publication updates our outlook for U.S. consumers. The research was prompted by an onslaught of pessimistic forecasts, related to rising consumer debt and better-than-expected consumption growth in recent years. The report presents an aggregate indicator of consumer health, taking into account consumer-related economic and financial variables, which shows that conditions are much better than in the early 1990s, because of the aggressive easing in policies and strong housing market. Looking ahead, policy will not tighten until after employment growth is decisively positive, implying low odds of a consumer-led downturn.

Friday Dec 6, 2002 ec We will never surrender America's productivity grew by an impressive 5.1% at an annual rate in the third quarter, outstripping forecasts. Productivity often bounces in the first year of a recovery as workforces have been trimmed; but the pace of growth is a sign that the economy is now reviving. economist photo

Friday Nov 29, 2002 America's economy appeared to be on the mend. Third-quarter GDP growth was revised sharply upward from 3.1% at an annual rate, to 4%. However, evidence suggests that heavy government spending and zero-interest car sales had made a strong but unsustainable contribution.

Thursday Nov 28, 2002 cbc
KISSINGER HEADS PROBE OF TERROR ATTACKS Former U.S. secretary of state Henry Kissinger will head an investigation into the attacks on the World Trade Center and the Pentagon.

Thursday Nov 28, 2002 nyt
President Names Kissinger to Lead 9/11 Commission President Bush named Henry A. Kissinger, one of the most respected but polarizing figures in Washington, to lead an investigation into the Sept. 11 attacks.

Tuesday Nov 26, 2002 cbc
U.S. ECONOMIC GROWTH REBOUNDS The United States economy grew by a surprising 4 per cent annual rate in the third quarter of the year, beating the estimates of both the government and economists.

Tuesday Nov 26, 2002
U.S. President George W. Bush signed a law on Monday creating a vast Department of Homeland Security to prevent terrorist attacks on the United States. Mr. Bush picked White House adviser Tom Ridge to head the new department. It will consolidate all or part of 22 existing federal agencies, including the Coast Guard, the Secret Service and Border Patrol. The new department will not include the Federal Bureau of Investigation nor the Central Intelligence Agency, which will remain separate bureaus. The Homeland Security Agency will have 170,000 employees with an annual budget of $40 billion. The creation of the agency represents the biggest U.S. government reorganization since the 1940s.

Friday Nov 8, 2002 cbc
SECURITY REMAINS PRIORITY AFTER MIDTERM ELECTION: BUSHM In his first news conference since Republicans took control of Capitol Hill this week, U.S. President George W. Bush said his goal is protecting Americans from terrorists.

Nov 5th 2002 ec ap

Assassination by remote control
A pilotless aircraft has been used by America's CIA to fly into Yemen and assassinate a leading member of the al-Qaeda network. Such technology makes the war on terrorism easier to wage.
AMERICA'S war on terrorism has moved into a new dimension with the use of an unmanned Predator aircraft to track down and kill a senior al-Qaeda member who had been hiding in Yemen. Until now, the use of armed remote-controlled drones had been restricted to firing missiles at suspected al-Qaeda and Taliban fighters in Afghanistan. American officials have indicated that the attack in Yemen was mounted not by the American military but by the Central Intelligence Agency (CIA), which has been given permission by President George Bush to assassinate terrorist leaders.

Nov 7th 2002 ec Reuters

Bush triumphs - On his high horse
The Republicans claimed a great victory in America's mid-term elections, taking control of the Senate and increasing their majority in the House. President George Bush, who campaigned hard for his party, became the first president to make mid-term gains in both houses for 68 years.

Thursday Nov 7, 2002 OTTAWA:
CANADIANS REACT POSITIVELY TO U.S. MID-TERM ELECTIONS Top Canadian politicians say strong gains by Republicans in the U.S. mid-term elections might help ease bilateral disputes. Canada's Minister of International Trade, Pierre Pettigrew, predicts there will now be more constructive dialogue with a strengthened George Bush administration. He believes the Bush administration has the authority to deal with trade issues because it controls the American Congress and will not have to negotiate continually with various interest groups. Gordon Giffin, a former U.S. ambassador to Canada, also says the Republican victory in Tuesday's elections gives opportunities to Canadian businesses. Mr. Giffin says a window of opportunity to discuss and settle various trade disputes exists over the next 12 to 18 months... in the period before the next U.S. presidential election race gets underway. see w-n Canada/US file

Thursday Nov 7, 2002 OTTAWA:
CANADIANS PRESSURE U.S. TO MODIFY BORDER REGULATIONS It appears as if Canadian pressure has forced the U.S. to back away from its proposed travel restriction for landed immigrants. Canadians born in certain African countries and Middle East countries should be able to travel freely to the United States again, as well. Canada had raised concerns with American authorities about racial profiling of Canadian citizens born in certain predominantly-Muslim Middle Eastern and African countries. U.S. immigration officials have been questioning these individuals when they try to enter the U.S. for the past several weeks. Bill Graham, Canada's Foreign Affairs Minister, says the United States has the right to demand documents from landed immigrants. Prime Minister Jean Chretien also says he will not apologize for remarks he made about landed immigrants. On Tuesday, Mr Chretien said difficulties landed immigrants might face crossing into the United States were not the government's problem. On Wednesday, Mr. Chretien told the House of Commons that he has no reason to apologize because landed immigrants are not Canadian citizens.

Thursday Nov 7, 2002 OTTAWA:
GOVERNMENT SHOULD RE-ISSUE CANADIAN PASSPORTS Canada's privacy commissioner says Canada should change passports so they no longer indicate the bearer's place of birth. George Radwanski says the U.S. policy to target Canadian citizens born in certain countries justifies the change. Mr. Radwanski has sent a letter to Bill Graham, Canada's Foreign Affairs Minister, saying the information may even be dangerous, especially in hostage situations.

Tuesday Nov 5, 2002 cbc
TOP U.S. COURT BLOCKS OTTAWA'S SMOKING CASE The U.S. Supreme Court has stubbed out a Canadian government case aimed at stopping tobacco smuggling.

Sat. Nov 2, 2002 ec
U.S. TO TOUGHEN BORDER RULES FOR COMMONWEALTH CITIZENS Washington is preparing new regulations that would make it harder for citizens of most Commonwealth countries to get into the United States.

Friday Nov 1, 2002 ec
WHAT a week. The news on November 1st that unemployment in America had crept back up to 5.7% was still being digested when it emerged that manufacturing activity declined in October for the second successive month. The Institute for Supply Management said its index of manufacturing business conditions had dropped to its lowest level for nearly a year, and showed that the sector was contracting. The new figures capped several days of almost unremitting economic gloom. " see chart
More gloomy news for the American economy: manufacturing is down and unemployment is up. This follows data showing the economy is expanding more slowly than many economists had predicted. Pressure is increasing for another cut in interest rates next week

Fri Nov 01 bca The Fed Is Getting Cornered
A U.S. rate cut looms next week, unless the Fed wants to risk pushing the economy over the edge.
The Fed ignored the cries from the financial markets this summer and did not ease policy. The message that growth would falter has become reality and the Fed now faces a sinking economy and very nervous investors. The equity market has recently crawled back from oversold levels reached earlier this month, in hopes that monetary policy will deliver some stimulus this time. The Fed will have to ease (at next Wednesday’s FOMC meeting), or the markets could riot anew and policy will fall even further behind the curve.

Wed Oct 30 bca U.S. Treasurys: Have Yields Passed Their Low Point?
U.S. bond yields may have hit their cyclical low, but there is limited upside given economic woes..
The plunge in 10-year U.S. Treasury yields this autumn coincided with fears of a deep recession. After staying neutral (i.e. at benchmark duration) during the first half of the year, institutions capitulated and boosted duration, just as yields hit extremely overvalued levels. Previous duration spikes have occurred at important yield troughs, warning that the plunge below 4% may have marked the yield low for the cycle. Nevertheless, higher yields await improved economic sentiment. Leading indicators as well as consumer and business confidence highlight that the economy is not going to strengthen any time soon. Thus, a trading range near current yield levels could develop.

Thursday Oct 31, 2002 cbc
U.S. CONSUMER CONFIDENCE AT LOWEST POINT IN NINE YEARS Consumer confidence in the United States fell to a nine-year low in October on fears of a war with Iraq and continuing economic weakness, the Conference Board reported Tuesday.

Monday Oct 28, 2002 ec
The American economy President Bush has intervened in the bitter labour dispute affecting ports along America's west coast. The dispute, along with concern about war with Iraq, has added to the uncertainty affecting America's economic prospects

Friday Oct 25, 2002 nyt
Budget Deficit Is Said to Be $159 Billion The federal budget deficit for the year that ended Sept. 30 was $159 billion, a sharp swing from the surplus of $127 billion in the previous year.

Thursday Oct 24, 2002 cbc
CANADIAN WHEAT COULD FACE U.S. TARIFFS American commerce officials are warning Canadian wheat producers they may have to pay huge tariffs to sell their crops in the U.S.

Sunday Oct 6, 2002 UNITED STATES US President George W. Bush said Saturday that war with Iraq may be unavoidable. And he warned that delay was not an option to keep Iraqi President Saddam Hussein from inflicting what he called "massive and sudden horror" with weapons of mass destruction. Mr. Bush made the statements to hundreds of supporters at a Republican fundraiser in the state of New Hampshire that there will be no negotiations with Saddam. The comments are being seen as a preview to a prime-time television speech next week in which he will explain why he thinks the US should be prepared to take military action against Iraq.

Saturday Sep 28, 2002 rci U.S.
Finance ministers of the 34 nations of the Western Hemisphere have reaffirmed their countries' support of establishing a hemispheric free trade area by 2005. Canada is representing at the meeting in Washington by Canada's finance minister, Mr. Manley. The host of the meeting, U.S. Treasury Secretary, Paul O'Neill, says the ministers promised their countries will complete negotiations to establish the Free Trade Zone of the Americas.

see Sept 11

Tuesday Sep 17, 2002 TORONTO:
IRAQ WAR COULD TRIGGER US RECESSION
Economists warn that a protracted war by the United States against Iraq could have a profound impact on the economy. They say rising energy prices rise or military spending would exacerbate an already growing US government deficit. BMO Nesbitt Burns economist Russell Sheldon said that consumer spending would be one of the first areas affected if energy prices went up significantly. Crude oil prices have already risen to almost $30 US a barrel, a price that analysts say includes a $5 "war premium" because of the Bush administration's talk of a military strike against Iraq. Some analysts say crude prices could rise above $35 US a barrel in a worst-case war scenario -- if Iraq bombed oilfields and refineries in Saudi Arabia or other Gulf neighbours. Another potential impact on the economy is the cost of waging war against Saddam's regime, which could be more of a drain on the US treasury than it was in 1990-91. Peter Drake, deputy chief economist at TD Bank, said the economic impact of increased military spending would depend on how long a war lasted and how widely it spread. He noted that Federal Reserve chairman Alan Greenspan warned Thursday that large government budgets could have a severe impact on the U.S. economy. Mr. Drake added that if the U.S. gets into a long, costly war, there would be an increased risk that deficit spending could fuel inflation, as happened in the 1960s and '70s during the Vietnam War.

Friday Aug 30, 2002 nyt
U.S. Approves Water Plan in California, but Environmental Opposition Remains
The Interior Department has given its go-ahead to a $1 billion, 50-year plan to store and pump water from beneath private land in the Mojave Desert.

Wednesday Jul 24, 2002 cbc FAMILIES OF SEPT. 11 VICTIMS LAUNCH LAWSUIT A $1 trillion US lawsuit has been launched in the United States, against the Saudi government, members of the Saudi royal family, and over 70 other Islamic organizations and charities.

Aug 9th 2002 America's economy
The American economy has again confounded economic forecasters, with new productivity figures for the second quarter of this year better than expected. These come after worse-than-expected figures were released last week. Is America headed for a double-dip recession? With signals so mixed, economists are scratching their heads ec chart

Wednesday Jul 24, 2002 ec America’s economy
With stockmarkets world-wide sunk in gloom, so much now depends on the American economy. Is it doing as well as Alan Greenspan, the head of America’s central bank, has claimed? Or is a continuing slide in share prices about to undermine growth? click for chart

Tue.Jul 23, 2002 Painful documentary A documentary about 9/11 shows restraint, says Paul Reynolds, BBC News Online's World Affairs Correspondent IN PICTURES | Eyewitness | Timeline | twin_towers

Tuesday Jul 23, 2002 nyt Back to the Drawing Board
By SUSAN S. SZENASY
For those of us who believe in the power of informed planning and inspired architecture, what we saw in the six plans proposed for rebuilding the World Trade Center site was especially disturbing.

Tuesday Jul 2, 2002

Ballooning challenge Steve Fossett's mission to become the first balloonist to fly around the world solo

Friday Jun 28, 2002 rci U.S. The U.S. has rejected another attempt by China and Russia to launch talks aimed at banning arms in space. U.S. ambasssador Eric Javits told the Geneva-based Conference on Disarmament there's no need for a new weapons pact. European diplomats say the Chinese-Russian proposal contains nothing new and that the American refusal was predictable. Nuclear and other weapons of mass destruction are banned from space by a 1967 international treaty. But U.S. plans to build an anti-missile defence system has caused concern, especially in Beijing and Moscow.

Monday Jun 24, 2002 nyt Bush Facing Test in Fight to Avert a Financial Crisis The Bush administration, whose economic policy is trapped in partisan gridlock, must persuade the House to take action this week to avert a government financial crisis.

Monday Jun 24, 2002 Dollar hits new two-year euro low Intervention by the Bank of Japan proves only a temporary cure, as the US currency resumes its plunge in European trading.

Dollar hits new two-year euro low Intervention by the Bank of Japan proves only a temporary cure, as the US currency resumes its plunge in European trading.

Monday Jun 24, 2002
		Close call Round-the-world balloon almost drops into sea

Saturday Jun 22, 2002 nyt
Assessing Watergate 30 Years Later By RICHARD REEVES
Journalists' predilection for putting ourselves at the center of history is gradually trivializing the events of the late 1960's and early 1970's.

Friday Jun 14, 2002 President George Bush announced that he would after all set up a new cabinet-level Department of Homeland Security. Headed by Tom Ridge, it will bring together 100 government organisations and answer to Congress.

Friday Jun 14, 2002 economist Middle East middle-man Preparing to pronounce on America's Middle East position, George Bush invited Hosni Mubarak and Ariel Sharon to Washington to air their contrasting views. Mr Mubarak's plea for a peace timetable was rejected; Mr Sharon's seemingly accepted. A suggestion from Colin Powell, America's secretary of state, that Mr Bush might endorse a “provisional state” for the Palestinians, received no support from the White House. On the ground the violence continued. A suicide bomber killed an Israeli teenager in Herzliya. The Israeli army again invaded several West Bank cities.

Sunday Jun 9, 2002
		Secret world Behind America's most powerful spy agency

Fri May 31 bca U.S. Assets Are No Longer King
Foreign investors appear to be losing interest in U.S. assets, which is bad news for the dollar
The view that U.S. assets are “the place to be” is now being seriously challenged and is contributing to recent dollar weakness. Our conversations with U.S.-based fund managers suggest that interest in non-U.S. assets is finally reviving, as the view that the seven-year dollar bull market is over has gained momentum. Capital appears to be “re-balancing” away from the U.S., as highlighted by the drop in foreign capital flows into U.S. asset markets. The implication is that the dollar is likely to continue eroding.

	Fresh signs of US recovery US productivity soars to a 19-year high while consumer sentiment picks up sharply, boosting hopes of an economic rebound.
		How it could work Watch BBC News Online's flash movie guide to the US missile defence shield

Saturday May 25, 2002 nyt Bush and Putin Sign Pact for Steep Nuclear Arms Cuts President Bush and President Vladimir V. Putin of Russia signed a treaty on Friday to commit their nations to the most dramatic nuclear arms cuts in decades.

Tuesday May 14, 2002 US - USSR Arms deal see detail

Monday May 6, 2002 nyt
Taking On Offshore Tax Havens Democrats are promoting legislation to prevent American companies from avoiding taxes by reincorporating in offshore tax havens. see also W-N on OECD

Sunday May 5, 2002 bbc
Ozzy upstages Bush the comedian The Correspondents Association dinner traditionally features a gag-filled speech by the president of the day, usually at the expense of senior members of the US administration. ..."She helps me in a million ways. Here, she is helping me pronounce 'Azerbaijani," Mr Bush explained.

Sunday May 5, 2002 nytimes
Listening to the Future? By THOMAS L. FRIEDMAN
What an articulate young Indonesian thinks about America.

Wednesday Mar 20, 2002 bbc

Empire State Building to be sold,
102-story skyscraper for $57.5m.
A spokeswoman for Donald Trump confirmed on Tuesday that he and his partner, Japanese billionaire Hideki Yokoi, had clinched the deal to sell the building - New York's tallest after the 11 September attacks razed the twin towers of the World Trade Center. [photo]

Fri Mar 15 bca
U.S. Capital Spending: Signs Of A Bottom? U.S. corporate investment is set to improve later this year. The tech-wreck followed by a modest consumer slowdown and September’s terrorist attacks severely undermined corporate spending. Earnings imploded and companies struggled to repair profit margins. Our simple model of corporate investment is showing that the retrenchment should end by mid year. Yesterday, Fed Chairman Greenspan stated that it was critical for capital spending to strengthen in order to sustain the recent economic rebound. Such a bullish outcome looms. Corporate profits have stabilized and new orders are on the upswing, implying that investment should recover in the second half of the year. Implication: the Fed will be slow to tighten until capital spending has decisively turned up.

Thursday Mar 14, 2002 economist
The nuclear-posture review What's new? The Pentagon's nuclear policy largely represents continuity, not change
China said it was deeply shocked by the American defence report, which had also revealed that it was among possible targets for nuclear strikes. American officials sought to play down the report, saying it merely dealt with prudent planning. Russia, North Korea, Iraq, Iran, Libya and Syria were also on the list of possible targets.

Wednesday Mar 6, 2002 cbc
America and human rights: Going soft? America and human rights: Going soft? The publication of the American State Department’s voluminous annual “Country Reports on Human Rights Practices” has attracted even more scrutiny than usual. Human-rights activists have been poring over the document for evidence that America has let its allies in its “war against terrorism” off lightly. They have found some, but not much

Wednesday Mar 6, 2002 cbc
U.S. SLAPS IMPORT DUTIES ON STEEL, CANADA ESCAPES PENALITES The United States is slapping duties of up to 30 per cent on some imported steel, a move that a key labour union in Canada warned could hurt the steel industry here.

Robert McTeer

Wednesday Mar 6, 2002 cbc
The Dude in the Python
By MAUREEN DOWD ..I went on the venerated news program in 1989 after the first President Bush's first State of the Union address, and somehow managed to bore Ted Koppel silly.

Tuesday Mar 5, 2002 cbc
Network News Is Still Serious Business
Network News Is Still Serious Business By TED KOPPEL The eulogies for "Nightline" have been wonderful, but premature. ABC are negotiating with David Letterman to take over the time slot we currently occupy. [as goes "Nightline" so goes the U.S. DTN]

Wednesday, 27 February, 2002 bbc
Fallout likely caused 15,000 deaths
...the release of 500 hours of taped conversations covering the time of the Watergate break-in, researchers hope to find new clues to how much the president knew of the "third-rate burglary".

Thursday Feb 28, 2002 bbc
'US arrogant' say most Muslims
A Gallup poll reveals that 53% of Muslims in nine countries dislike the US and 61% do not believe Arabs carried out the 11 September attacks.

Monday Feb 11, 2002 nytimes
By MARGARET THATCHER Advice to a Superpower
America and its allies are still under deadly threat from terrorism. That threat must be eliminated, and now is the time to act vigorously.

Friday Feb 8, 2002 economist
American productivity
A profitless recovery?
America's stockmarket has priced in an unrealistically sharp rebound in profits

Feb 7, 2002 economist George Bush's budget Unfurl the fuzzy maths Fortunately, the president's bold but fiscally-challenged budget won't become law. Unfortunately, something worse might

Saturday Feb 2, 2002 nytimes Bush's budget: Deficit dilemmas Strengthening the American economy is the primary goal of President George Bush's budget, according to his treasury secretary, Paul O'Neill. But the budget provides for one of the largest jumps in government spending in recent history, and spells an end to hopes of budget surpluses until at least 2005. The president may find it a struggle to stop Congress passing an even bigger budget

Saturday Feb 2, 2002 bbc
Enron executives 'pocketed' millions Top Enron executives took millions of dollars "they should never have received", an Enron internal report claims.

Saturday Feb 2, 2002 nytimes Bush Budget Links Dollars to Deeds With New Ratings President Bush's proposed budget plan will for the first time formally assess the performance of government agencies and link their financing to the grades they receive.

2001