Higher energy prices, the lack of energy, high interest rates and onerous taxes are retarding our economic growth. The liberals are now screaming vitriolically as President George W. Bush withdraws us from the 1997 global warming, sky is falling agreement, commonly referred to as the Kyoto Pact. Enacting limits on emissions of greenhouse gases, which are as yet unscientifically proven to be global environmental hazards, could worsen our energy shortages. Gasoline inventories going into summer are low, ensuring prices will remain high. The Chicago Purchasing Managers Index continues its nosedive, indicating weakness in manufacturing.
Analysts say healthy personal spending levels are at risk as joblessness keeps rising.
Corporate credit quality fell for the 12 th straight quarter. Moody s Investors Service blamed the slowing economy, corporate profit erosion and firms taking on too much debt. Construction starts continue to fall. An analyst in Investors Business Daily was quoted as saying that If consumer confidence continues to ease and the equity market becomes more consumed and preoccupied with the onset of recession, those conditions could mitigate the influence of lower rates. The Fed should immediately lower the discount rate 100-150 basis points and Federal income taxes should be cut retroactively and aggressively.