-Caveat Lector- <A HREF="http://www.ctrl.org/"> </A> -Cui Bono?- from:alt.conspiracy As, always, Caveat Lector Om K ----- Click Here: <A HREF="http://www.aci.net/kalliste/">The Home Page of J. Orlin Grabbe</A> ----- US Stock Market Strong US Growth Rattles the Markets Dollar rallies, stocks and gold fall, on Fed implications. NEW YORK - The U.S. economy grew even faster at the end of last year than the torrid pace previously reported, revised government figures showed Friday. The data increase the likelihood of interest-rate increases by the Federal Reserve Board even though the report showed that inflation remained at the low level previously reported. The Commerce Department said gross domestic product expanded at a 6.9 percent annual rate in the fourth quarter of 1999. That was significantly higher than the 5.8 percent rate of growth the government had calculated in January. The report helped lift the dollar against the euro. The single European currency fell to 97.53 U.S. cents from 99.31 cents Thursday. But the Dow Jones industrial average fell to close below the benchmark 10,000 level as investors rolled money out of old-line industrial companies and into high-technology companies. Two measures of inflation that are included in the report were unrevised, with the implicit and fixed price deflators remaining at 2 percent. ''In the new competitive economy, strong growth and low inflation can coexist,'' Debbie Johnson and Edward Yardeni, economists at Deutsche Banc Alex. Brown, said in a note to clients. The strong fourth-quarter growth suggests that a series of interest-rate increases last year have not succeeded in slowing the economy significantly. The central bank has already raised short-term interest rates by a percentage point since the summer, but it has mainly succeeded in slowing those sectors of the economy most directly affected by the cost of money, such as banking and real estate. And while inflation remains low, that is no guarantee that the central bank will not raise interest rates again. Alan Greenspan, the Fed chairman, told Congress in his semiannual testimony Wednesday that the very force that allows the economy to grow quickly without significantly pushing up prices for goods and services was also a potential problem. As American companies become more productive, expectations for their earnings rise, he said. This has the effect of raising the prices of their stocks, increasing the wealth of investors who own those shares. The problem with that, Mr. Greenspan said, is that those investors are spending some of the profits on goods and services that the economy does not have the resources to produce. Indeed, personal consumption was the largest contributor to the fourth-quarter GDP growth, with the pace of expenditures rising 5.9 percent, up from the earlier estimate of 5.3 percent. An inflation gauge linked to these purchases grew at a 2.5 percent rate in the fourth quarter, compared with 1.8 percent in the third. So far, Mr. Greenspan said, new employees coming into the work force - including immigrants - and imports have satisfied the increase in demand attributable to the wealth effect from the rising stock market, but the central bank is worried that these ''safety valves'' will eventually cease to protect the economy from inflation, posing a threat ''to our continued prosperity.'' He told senators that the central bank would raise rates until the economy slowed to a pace below that of the second half of 1999. The Fed's forecast for growth in 2000 is 3.50 percent to 3.75 percent, and the outlook is often considered to be the central bank's target, not just an estimate. A separate set of economic data released Friday underscored the impact of higher rates on banking and real estate. Sales of existing homes fell 10.7 percent in January, according to the National Association of Realtors. The average rate on a fixed 30-year mortgage rose above 8 percent in January, from 7.74 percent in November, according to the mortgage provider Freddie Mac, and home buyers are increasingly switching to adjustable mortgages, a strategy that indicates they find the conventional rates too high. But while rising rates can be a problem for home buyers, they are less of a concern for high-tech companies and investors who buy shares in them. Profits for the 100 biggest companies in the Nasdaq composite index are expected to rise more than 30 percent this year, according to First Call Corp., which collates analysts' projections, and investors are increasingly abandoning old-economy stocks for shares in these fast-growing technology issues. So far this year, the Nasdaq composite is up nearly 13 percent, while the Dow Jones industrial average has fallen more than 14 percent. International Herald Tribune, February 26, 2000 US Politics The Rusty Sound of Bush's Iron Triangle Boy, sunshine and oxygen sure made a mess of the man of steel. STILL reeling from his primary defeats in Michigan and Arizona, George W Bush had retreated home to Austin, Texas, yesterday to discuss with his "iron triangle" of advisers why his campaign had gone so badly wrong. Even as he did so, Mr Bush was being criticised by some Republicans for relying so heavily on three people who know everything about Texas politics but have little experience of national campaigns. Karl Rove, chief campaign strategist, Joe Allbaugh, campaign manager, and Karen Hughes, communications director, have formed Mr Bush's inner circle since he first stood for governor in Texas in 1994. Mr Allbaugh has described the trio as "the brain, the brawn and the bite". Together they form Mr Bush's alter ego. Whereas his rival, Senator John McCain, is apt to direct his staff and go against their advice, Mr Bush appears utterly reliant on his advisers' judgment. This week, however, some were recommending that Mr Bush should be sacking his team rather than asking them what his next move should be. Mr Rove, 48, in particular, is under fire. He has been connected to the Texas governor's family since he first worked for Mr Bush's father in 1973. When they are not travelling together, Mr Bush speaks to him up to 20 times a day and sometimes advises journalists to cut out the "middle man" and talk to Mr Rove about policy issues. Mr Rove is believed to be the prime mover behind the "under-the-radar" campaign warfare which Mr Bush has employed against Mr McCain, a Vietnam veteran. Although these tactics were effective in South Carolina, Mr Rove is being blamed for a series of errors such as advising Mr Bush to speak at the anti-Catholic Bob Jones University, which bans inter-racial relationships, and spending $2 million in Mr McCain's home state of Arizona. Chris DePino, chairman of the Connecticut Republican Party, said it was "stupid" for Mr Bush to speak at the university. "It created an issue where none should exist. We gift-wrapped it and sent it over to John McCain to use." Miss Hughes, 42, is a former television reporter. She has a son of 12, teaches at Sunday school and is an elder of her Presbyterian church in Austin. Fiercely protective of Mr Bush, she is a looming presence at press conferences and often interjects to explain a question or elaborate on the governor's answer. Mr Allbaugh is the mediating force between Mr Rove and Miss Hughes, who are both formidable characters. A huge man, he describes himself as "the enforcer of the governor's will and the moderator of staff egos". Having relied on his inner circle for so long, Mr Bush seems unlikely to resort to dismissals. A Washington lobbyist said: "George W Bush is a creation of these people and going against what they say is almost unthinkable. And let's face it, they're hardly going to recommend he fires them." The London Telegraph, February 26, 2000 ----- Aloha, He'Ping, Om, Shalom, Salaam. Em Hotep, Peace Be, All My Relations. Omnia Bona Bonis, Adieu, Adios, Aloha. Amen. Roads End <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are not allowed. Substance�not soap-boxing! These are sordid matters and 'conspiracy theory'�with its many half-truths, misdirections and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://home.ease.lsoft.com/archives/CTRL.html http:[EMAIL PROTECTED]/ ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
