CPI and inflation

CONSUMER PRICE INDEX:

*A consumer price index (CPI) is an index number measuring the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies. The percent change in the CPI is a measure of inflation. The CPI can be used to index (i.e., adjust for the effects of inflation) wages, salaries, pensions, or regulated or contracted prices. The CPI is, along with the population census and the National Income and Product Accounts, one of the most closely watched national economic statistics.

* The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.


INFLATION:
A persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to diflation).


DEFLATION:
A fall in the general price level or a contraction of credit and available money.

STAGFLATION:
An inflationary period accompanied by rising unemployment and lack of growth in consumer demand and business activity.

The CPI affects nearly all Americans because of the many ways it is used.

The CPI does not include investment items, such as stocks, bonds, real estate, and life insurance.

The CPI cannot be used as a measure of total change in living costs because changes in these costs are affected by (such as social and environmental changes and changes in income taxes) that are beyond the definitional scope of the index and so are excluded.

CPI cannot be used to measure differences in price levels or living costs between one place and another; it measures only time-to-time changes in each place.

The CPI may not be applicable to all population groups. For example, the CPI-U is designed to measure the experience with price change of the U.S. urban population and thus may not accurately reflect the experience of people living in rural areas


The CPI cover some good and services such as, food beverages, housing, apparel, tranportation, medical care,recreation, education and comunication, and other goods and servivices like,tobacco and smoking products, haircuts and other personal services, funeral expenses.

National Debt

National Debt:

National Debt is money that a country owes to foreigners.

Trade Deficit:

a negative balance of trade is known as a trade deficit or, informally, a trade gap.

A trade deficit is a calculation of the difference between the goods and services Americans sell to foreigners and the goods and services that Americans purchase from foreigners. A trade deficit with one country or in one year is not necessarily worrisome, and according to standard economic theory, will correct itself over time. But the theory has been proved wrong over the last 30 years as the United States has run consistent and increasing trade deficits. The enormous size of the trade deficits over the last several years raises the possibility of a severe international economic crisis should foreigners begin to dump the dollars they hold in world currency markets. The trade deficit is calculated on an annual basis, so the number above was $0.00 on January 1st, 2008.

U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 26 Mar 2008 at 01:54:17 PM GMT is: 9,403,234,932,855
The estimated population of the United States is 303,692,909so each citizen's share of this debt is $30,947.19.
The National Debt has continued to increase an average of$1.64 billion per day since September 29, 2006!

U.S. Trade Deficit.

$165,897,071,465.3

I think the National Debt is hurting the most the US. The National Debt has been increasing an average of $1.64 billion per day since September 2006. Each citizens must pay around $30,947.19 to pay off all the debt. i think that is a lot of money .

The trade deficit is another story. When we (mostly the private sector) import more than we export, we run a trade deficit. When that happens, it adds to our foreign debt.

http://www.americaneconomicalert.org/ticker_home.asp

http://www.brillig.com/debt_clock/

Visa ready to charge ahead

http://money.cnn.com/2008/03/19/news/companies/visa_ipo_opens.fortune/index.htm

*Hopes are running high that Visa's record-breaking IPO will revive the sleepy market for new shares.
*Visa's public offering made its new owners very, very rich when it priced Tuesday night for a record-breaking $17.9 billion
*It sold 406 million shares at $44 a share, $2 above its estimated $39-$42 rang.
*Analysts also say that Visa is on solid financial footing and has what it takes to deliver steady earnings growth
*Visa also said it would rake in approximately $17.3 billion in net proceeds, leaving about $600 million to cover things like underwriting fees, discounts and commissions
*analysts believe its success could breathe life into a stagnant IPO market.
*Visa is getting in a period when so few IPOs have been done that underwriters are not making money in fees. The success of this deal could slowly rekindle the IPO market.

Home Depot Reports Profit Declined 27%

*In the fourt-Quarter, Home Depot's profit fell more than 27%.

*A slowing housing market
led to the company’s first annual sales decline.

*The company said that the 2008 was expected to be worse in terms of sales and profits.

*The home improvement industry has suffered as consumers pulled back on renovations in the face of declining home values.

* The company was also lagging in costumer service.

* The company said that even thought the looses they plan to add 55 stores this year.

*.Lowe’s reported that its fourth-quarter profit dropped by a third.

* it predicted that sales would improve slightly in 2008 Even with the low house selling market

(((NY TIMES)))

Presidential Candidates

John McCain:
Republican
*1st place in total delegates

Cut Taxes On The Middle Class:
Hard-working American families need lower taxes
Keep Tax Rates Low:
John McCain will make the Bush income and investment tax cuts permanent, keeping income tax rates at their current level and fighting the Democrats' plans for a crippling tax increase in 2011
Make It Harder To Raise Taxes: John McCain believes it should require a 3/5 majority vote in Congress to raise taxes
Reward Saving, Investment and Risk-Taking.
Ban Internet Taxes: John McCain believes we must make a farsighted, robust, and fervent commitment to innovation and new technologies to sustain our global competitiveness, meet our national security challenges, achieve less costly and more effective health care, reduce dangerous dependence on foreign sources of oil, and raise the quality of education in the United States.
Lower Medicare Premiums.
Stop Earmarks, Pork-Barrel Spending, And Waste.
Budgetary Reform To Give Tax Cuts A Fair Chance.
Reform Social Security: John McCain will fight to save the future of Social Security and believes that we may meet our obligations to the retirees of today and the future without raising taxes.
Control Medicare Growth.

Lowering Barriers to Trade

Hillary Clinton:
Democrat
*1st place in total delegates.

Would establish a $30 billion emergency housing fund to assist states and cities mitigate the effects of mounting foreclosures. Would also include a 90-day moratorium on subprime foreclosures and an automatic rate freeze on subprime mortgages of at least five years. Would provide $25 billion in emergency energy assistance for families facing skyrocketing heating bills. Would invest $10 billion in extending and broadening unemployment insurance for those who are struggling to find work. Would accelerate $5 billion in energy efficiency and alternative energy investments to jump-start green-collar job growth

US economy entering a "Recession"?

1.Recession: Decline in economic activity: a period, shorter than a depression, during which there is a decline in economic trade and prosperity.

2.http://ap.google.com/article/ALeqM5hJjzb-73g6-mEmgvyixbf7Vzw2lgD8UNNUBO2

3.US Is Already in a Recession.
Empty homes and for-sale signs clutter neighborhoods.
People Squeezed by high energy and food bills.
The meltdown in the housing and mortgage markets.
Credit has become harder to get.
The job market is faltering — a point driven home by a report showing that employers cut jobs in January for the first time in more than four years.

Is It Too Late for Yahoo?

Jerry yang became chief executive of Yahoo. the first questions that he had to ask was was whether the company could remain independent.
Mr Yang faces enormous pressure as he decides whether to try to rescue the company from the clutches of Microsoft, or accept the bid and watch Yahoo become part of Microsoft.
A $44.6 billion bid from Microsoft is once again forcing Mr. Yang and his board to consider the viability of Yahoo as an independent company
Mr. Yang and Mr. Filo recognized that they did not have the experience to run the company. They called themselves Chief Yahoos and hired others to fill the chief executive post.
One top executive countered that Mr. Yang had already shuttered some projects and turned Yahoo into a more efficient company, without jeopardizing profitable businesses.
Some analysts said the only move that could have averted Microsoft’s bid was for Yahoo to outsource its search advertising business to Google — something the company is now considering.

My guess is that Yahoo’s fate won’t be completely decided, but the end game is definitely underway. The most likely scenario is that Yahoo will engage negotiations with Microsoft

Microsoft makes offer to buy Yahoo!

http://www.allheadlinenews.com/articles/7009900939


Microsoft has offered $44.6 billion to buy the company.

Software giant Microsoft has bid $44.6 billion to acquire Yahoo, Google's long-time rival

Microsoft Corp., the world's biggest software maker, made an unsolicited $44.6 billion offer for Yahoo! Inc. to challenge Google Inc.'s dominance in Internet search services and advertising.
The $31-a-share bid of cash or Microsoft stock is 62 percent more than Yahoo's closing price yesterday
The purchase would be the largest acquisition ever in the technology industry. There have been bigger media and telecommunications deals.

Executives contend that the acquisition would jumpstart Microsoft's online advertising business by establishing it as a must-buy for marketers.

My guess is that Yahoo’s fate won’t be completely decided, but the end game is definitely underway. The most likely scenario is that Yahoo will engage negotiations with Microsoft

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