Disappointing U.S. Data Confirms Slowing Recovery

Weak US data fuel fears of slowing recovery

The US economy has stumbled deeper into the mud of another soft patch, with revised data showing a weaker pattern of growth in the first quarter.

The Bureau of Economic Analysis kept its growth estimate at an annualized 1.8 per cent, dashing hopes that it would be revised upwards, and said that consumption growth was weaker than it previously thought.

The latest data suggest the recovery will continue to be slow and painful, with average growth of about 3 per cent. That is only slightly above the long-run trend and will mean only a slow reduction in unemployment.

Whole article: http://www.ft.com/intl/cms/s/0/b53d97b2-8790-11e0-af98-00144feabdc0.html#axzz1NU91eoQP

$2M lottery winner getting food stamps

Michigan officials and legislators are moving quickly to change the rules that made it possible for the winner of a $2 million lottery to keep receiving food stamps, the Detroit Free Press reports.
LINK: http://content.usatoday.com/communities/ondeadline/post/2011/05/lawmakers-rush-to-block-1m-lottery-winner-getting-food-stamps/1

Barack Obama will reach out to the Muslim world in his speech

Appointing himself to a leadership role in the Muslim world ... President Barack Obama will deliver a speech reaching out to the Muslim world, in the aftermath of the killing of Osama bin Laden and amid ongoing unrest in the Middle East and North Africa.

Article Link: http://news.yahoo.com/s/afp/20110511/pl_afp/usreligionpoliticsislamobama_20110511142406

U.S. Trade Deficit Widens by 6%

U.S. Trade Deficit Widens by 6%

U.S. companies sold the most goods and services overseas on records dating back 15 years, but a big jump in oil prices pushed the nation’s trade deficit higher in March.

The trade deficit rose 6 percent to $48.2 billion, the Commerce Department said Wednesday. That’s the highest level since June 2010 and up from $45.4 billion in February.

Exports increased to $172.7 billion. The dollar’s decline in recent months has made U.S. goods cheaper overseas, and exports also have risen because of rapid growth in developing countries.

However, oil imports soared to $39.3 billion, an 18 percent rise from the previous month. It was the highest level since August 2008 and reflects steep price increases as well as greater demand.

The average price for a barrel of imported crude oil was $93.76 in March, up from $87.17 in February. Oil prices have risen even further since then, despite declines in recent weeks. Oil closed at about $104 per barrel on Tuesday.

LINK: http://www.washingtontimes.com/news/2011/may/11/us-trade-deficit-widens-march-pricier-oil/

President Obama wants to radically change this system so that it is based on a class-warfare model.

President Obama came out for lifting the cap on income on which the Social Security payroll tax is applied. If the cap is removed entirely, it will also mean a huge increase in the marginal tax rates that affect decisions to work, invest and save.
Read the entire article: http://online.wsj.com/article/SB10001424052748704071704576277133474338552.html

It appears that President Obama wants to radically change this system so that it is based on a class-warfare model.