U.S. Treasuries Fall as Jobless Claims Drop More Than Forecast

[MaineDem]

How in hell can jobless claims DROP?????

Sept. 29 (Bloomberg) -- U.S. Treasuries fell after a government report showed first-time claims for unemployment insurance benefits fell more than forecast, reinforcing expectations that the Federal Reserve will continue raising its interest-rate target.

Treasuries also declined as a government report on second- quarter economic growth showed prices rose at a 2.6 percent annual rate, faster than previously estimated. Fed officials including Michael Moskow, president of the Chicago branch, and Janet Yellen, president of the San Francisco branch, in recent days have indicated the central bank won't tolerate faster inflation.

The drop in claims ``reiterates that the economy, except for Katrina, is on solid footing,'' said Michael Pond, a government bond strategist at Barclays Capital Inc. in New York, one of the 22 primary U.S. government securities dealers that trade with the central bank's New York branch. ``Growth is poised to move higher.''

http://www.bloomberg.com/apps/news?pid=10000103&sid=aRnTJ5URe8eQ&refer=us

[bahrbearian]

1. How in hell can jobless claims DROP?????

Diebold Calculators

[thefloyd]

2. lagging indicator

would be my best guess

[Skink]

3. Did you expect them to count the Katrina victims.....

And the economy is doing great for CEO's. All that is neccassary really.

[ClintonTyree]

4. It's all smoke and mirrors..........

and of course greatly massaged data. If the people in this country knew the actual state of the economy widespread panic would ensue. Of course the government's "creative bookkeeping" keeps everyone from seeing what is truly there. Just like everything else in the bush administration, if the light of day were to shine on the true facts the economy and country would crumble.

[whistle]

5. Prices rising 2.6% is total bullshit inflation is much higher

...for example compared to last year at this time gasoline and diesil fuel prices are up by 25%, my electric utility rates went up by 14%, food prices for basic food stuff (i.e. bread, milk, meat, cereal, etc) are up by 9%, toll road fees are up by 22% and my replacement clothing costs (underwear, shoes, socks, pants, shirts) are up even when I buy them on sale by more than 11%. Telephone fees are about to go up as well. My lawn care guy raised his fee by 12% to cover his fuel charges and my houskeeper has asked for a $10 per visit increase, thats $20 because she comes twice a month. Need I mention heathcare costs, my health insurance costs are going up while basic coverage is going down. My co-pay for medications are increasing because the insurance provider does not cover the medications I must take and generics are not available for them.

Even the Federal Reserve interest rates which affect most basic interest charges and the costs of borrowing have been increasing by .25% every month for the past ten months. That means that since last year the Fed rate is up 350%! It is true that my home mortgage and my automobile loan rates have not gone up, but everything else has and most of those charges I can't do anything about. I have to pay them or go without.

I calculate that my basic personal market basket inflation is well over 10%, in otherwords my income which has not changed buys much less than it did one year ago. So the CPI for my situation is total bullshit. Even if I were to sell my home and rent a small apartment I would end up paying more than my mortgage, so I would gain nothing I've checked around and I was shocked to find this to be the case.

So, my market basket items are inflating by a much higher degree than the so called consumer price index. The choice for those on a fixed income comes dowqn to paying the inflated costs or going without.

<snip>

Calculate Your Own Inflation Rate
Aug 01 '04





Inflation is sneaking up again. That's not news to many retirees, who often spend large amounts on services such as medical care for which prices increase faster than overall inflation. The government's gauge of inflation for older consumers, which assigns a greater weight to medical care, indicated an inflation rate of 2.1% in 2003, versus 1.9% for the general population. For the 12 months ended May 31, medical care costs rose 4.6%, significantly higher than the 3.1% overall inflation rate.

It's a good idea to get a handle on your personal inflation rate for accurate budgeting. If the inflation rate you employ is off by even one percentage point, your spending plan will get increasingly inaccurate as the years go by. If you need guidance, spending programs such as those featured in our story on page 1 can help you determine your inflation rate so you can safely withdraw from your savings each year.

The government's broadest gauge of inflation is the consumer price index for all urban consumers (CPI-U). It's a measure of the average change in prices paid for a wide range of goods and services. Because it's an average, the CPI-U ......

(Continued)

<link> http://www.keepmedia.com/pubs/KiplingersRetirementReport/2004/08/01/954432

[MaineDem]

7. I'm retired living on a pension

I haven't had an increase in 10 years but my expenses have certainly risen! It's extremely depressing!

Your answer was excellent. Thanks!

[Tempest]

6. Two reasons for the drop

1) No unemployment offices available to hurricane victims.

2) There's a two week wait in most states before you can apply for benefits.

[Megahurtz]

8. They're lying. n/t

[leesa]

9. They didn't. It's just another lie.