WASHINGTON - Higher costs for energy and food last year pushed inflation up by the largest amount in 17 years, even though prices generally remained tame outside of those two areas. Meanwhile, industrial output was flat in December, more evidence of a significant slowdown in the economy.
Consumer prices rose by 4.1 percent for all of 2007, up sharply from a 2.5 percent increase in 2006, the Labor Department said Wednesday. Consumers felt the pain when they filled up their gas tanks or shopped for groceries. Prices for both energy and food shot up by the largest amount since 1990.
In a second report, the Federal Reserve said that output at the nation's factories, mines and utilities showed no growth in December, adding to a string of weak economic reports showing that the economy was slowing at the end of last year.
The unchanged output in December was the poorest showing since industrial output actually fell by 0.5 percent in October. Output had been up by 0.3 percent in November.
The December weakness reflected flat output at U.S. factories, a tiny 0.1 percent rise in the mining industry and a 0.2 percent drop at the nation's utilities. The Consumer Price Index rose by 0.3 percent in December, slower than the 0.8 percent in November, as food costs were flat for the month and energy prices rose by 0.9 percent after an even bigger 5.7 percent jump in November. Outside of food and energy, inflation rose a more moderate 0.2 percent in December. This measure of core inflation rose by 2.4 percent for all of 2007, down slightly from a 2.6 percent increase in 2006. The Federal Reserve is closely watching to see whether the jump in food and energy becomes more widespread and starts pushing core inflation higher.
Analysts said that with core prices generally remaining well-behaved, it will give the central bank the leeway to cut interest rates further to battle a serious economic slowdown triggered by a steep slump in housing and a spreading credit crisis.
The expectation is that the Fed will cut a key rate by a half-point when officials meet at the end of this week. Federal Reserve Chairman Ben Bernanke raised hopes for further rate cuts in a speech last week when he said that economic risks had grown significantly in recent weeks. The rising risk of a recession has prompted politicians to consider stimulus packages to give the economy a jump-start to either prevent a recession or at least mitigate its fallout. President Bush has said he may unveil a plan around his Jan. 28 State of the Union address. Democrats in Congress and presidential candidates in both parties are putting forward their own plans. The CPI report showed that the 4.1 percent increase in overall prices was the biggest since a 6.1 percent jump in prices in 1990. Energy costs rose by 17.4 percent this past year while food costs rose by 4.9 percent. Both were the biggest increases since 1990. Gasoline prices were up 29.6 percent, the biggest increase since they soared by 30.1 percent in 1999. The 2.4 percent rise in prices outside of food and energy was the smallest since a 2.2 percent rise in 2005. Clothing costs and the price of new cars actually fell for the year, both dropping by 0.3 percent, while airline fares, reflecting higher fuel costs, were up 10.6 percent and medical care, always one of the leading areas of price increases, rose by 5.2 percent for 2007. Workers' wages failed to keep up with the higher inflation. Average weekly earnings, after adjusting for inflation, dropped by 0.9 percent in 2007, the biggest setback since a 1.5 percent fall in 2005.
Now, let's make a simple mathematical calculation.
17 years ago was the year 1991 "Am I right"?
Who was the president in the year 1991?
George Bush Senior. "Am I right"?
Which Party was controlling the Administration at the time?
The Republican Party. "Am I right"?
Who became president after George Bush Senior?
Bill Clinton. "I think I am right again".
Which party was controlling the administration at the time?
The Democratic Party. "Right again".
For the next eight years, they built surplus in our governments' budget.
Now that we are under the scrutiny of the republicans again, we’re not only trillions of dollars in debt, but we also are headed into a recession. Are you guys with me so far
Now, I am not saying that Democrats are better than Republicans; in fact I think they are nothing but the two halves of the same Back cheeks.
America needs new blood, a new group of people who will head us into a better future, an administration that has a friendlier foreign policy than we had in the past two centuries. We are the only super power now, (I THINK). We should be proving to the world that we are good people not a bunch of shoot from the hip cowboys. We should spread peace, not war; we should sell life saving products to the third world countries; instead of guns and smart bombs. But, wait a moment; I am nothing but a stinking foreigner whose country is being ripped apart by my own government, lead by a president who was not even elected. I guess I will not keep the promises I made when I was getting interviewed for my citizenship, that I would defend this country in time of war. How can I defend a country ran by warmongers? How can serve warlords? HOW? HOW? HOW?
< Message edited by Harry -- 1/16/2008 1:21:03 PM >
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God bless the whole world, No exceptions. الدين لله و الوطن للجميع
my dear sweet fool , that this forum iraq4u is for all iraqis whether they arabs or non-arabs, whether their syrians are originaly iraqis or whether there are turkeys are originaly iraqis or whether there are iranians originaly iraqis also, so do not be selfish and saying it is for iraqi arabs, no you are wrong it is for iraqis how have diffirent ethinics and cultures do you understand that put it in your thick skull.
Those who refuse to accept their origin are nothing more than a bunch of fatherless idiots, and you are one of them. You cannot speak your own language if you were american, your capability of understanding what we all are saying is far beyond the ability of the empty skull of yours. Your understanding of the situation in the middle east and worldwide affairs is laughable. So please leave us be, we have a sight here for Iraqis, true Iraqis, no pretend Iraqis, and on this site we welcome friends from all over the world to debate their point of view. I am fed up with your idiotic repeats, hatered, calling disfferent races names, who the hell do you think you are? I have kurdish friends, Iranians, Turks, and people from all over the world. I have jewish, christians, muslims all religions, and I respect every and each one of them, and they respect me back. So grow up and face reality, look at yourself in the mirror, and have a good laugh, because you are a joke.
I didn't see any red carpet, so I decided to sneak in quietly. I had an acceptance for the book yesterday, only the second publisher that I tried. But I am studying his terms, and looking for an agent in America to keep an open eye for me and on my behalf.
I am working on another book now, and this one will take a year to finish. Its huge, and i am very excited about the way its going.
I phoned my brother, the situation there is very critical. And, I think it will explode again soon. Many people aren't happy to see the Iranian top man in Baghdad.
Good to see you up and running, and how are the studies Harry? And LOB you doing a great jpb mate.
The is no need for a duhhhhhh today, but if you really miss it there is one
Mabrook Calm. I wish you all the best with the publisher and can't wait to read your book. When you do settle on a publisher let us know so we can crack open a bottle of Arak in your honour. All the best mate.
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"As we are liberated from our own fear, our presence automatically liberates others" - Nelson Mandela
There is an old Chinese pharse which says, that you can rule people when they are 1- Starving and poor, because money is power 2- You can rule them when they are scared 3- You can rule them when they are illetrate, So , You need an evil mind to generate at least one of these conditions to successfuly rule Sheeple, with respect to the Iraqi people all these methods are in full force for a quite long time, but the major question is who is rulling the USA, I would say the Devil himself, because there is no justification for the blood that has been shed by the American since the creation of this country.
A bunch of Bones men who beleive in nothing but money and power and pure blood.
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