Diskusije : Berza

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Skandali kenjadske prdno-ekonomije
znalac2
(shkafishkafnjak)
30. mart 2013. u 15.07
1. The McGuinty Ontario Health Premium - The highest tax increase in Ontario's history, implemented months after Dalton McGuinty was elected in 2003 on a promise to not increase taxes (even after signing a contract with the Canadian Taxpayers Federation to not increase taxes). McGuinty justified his healthcare tax increase on Ontario's Working Families by saying that he inherited an unknown deficit from the previous Government, yet here we stand today in Ontario with the highest deficit that Ontario has ever had, literally multiplied by the McGuinty Government and Ontario's Unions. This was the first tax of many new taxes and user fees that Dalton McGuinty has imposed on Ontario's Working Families in order to support his Union Boss buddies and allow the scandalous corruption to continue. (See: Globe and Mail: The health care premium).

2. The McGuinty Delisting of OHIP Covered Necessary Health Services - Where after Dalton McGuinty promised not to decrease any health services covered by OHIP, and also not to raise taxes, he did both on the same day by implementing the Ontario Health Premium and delisting coverage of Optometry (Eye), Chiropractic and Physiotherapy Services for Ontarians. (See: Canadian Cancer Care Society: Mixed reaction to McGuinty government’s budget and Toronto Star: Hampton pledges to pay for delisted health services.)

3. The McGuinty eHealth Scandal - That cost Ontario's Working Families a Billion dollars in wasted tax dollars (and unprecedented delays in the computerization of Ontario's health records), and is a true definition of „gravy”, a term that also defines McGuinty's wasteful mismanagement of the Ontario Government. Here we stand years after this initiative started and Billions of dollars in the hole, and still it is not completed. The eHealth failure was famous not only for its complete lack of progress, but also for its constant usage of sole-sourcing and untendered contracts to Liberal friends, along with scandalous expenses logged by useless consultants, eHealth Executives and Upper Management. „eHeatlh” has now become a term that is synonymous with scandal, waste and boondoggle. (See: Toronto Star: EHealth operation bled $1B and Toronto Star - Coverage of eHealth Ontario.)

4. The McGuinty Slush Fund Scandal - Where Dalton McGuinty's Government gave $32 Million to Liberal friendly groups (in the form of Government Grants) over a 2 years span with no formal application process and no accountability for how the money would be spent. Just, „here you go, vote Liberal!” (See: Toronto Star: Insults and accusations fly in Ontario 'slush fund' affair and Toronto Star: New charges fuel 'slush fund' scandal.)

5. The McGuinty Ontario Lottery and Gaming (OLG) Scandal - Where on the McGuinty Government's watch, there were multiple accounts of catastrophic corruption related to Lottery Winnings being stolen from Ontario families by Lottery Retailers, countless OLG insider wins, Ontario family tax dollars being corruptly given out via sole-sourced untendered contracts to Liberal friendly firms, and massive Ontario family tax dollar waste via the horrifying expenses by OLG staff again allowed by the McGuinty Government (in exactly the same way it was allowed in eHealth). (See: CTV: Ont. gov't scrambles to control OLG scandal damage and CTV: OLG: Billions in profits, but lots of headaches.)

6. The McGuinty CancerCare Ontario Scandal - Yet another eHealth-style scandal costing Ontario Working Families millions of dollars. (See: CBC: Cancer Care Ontario broke rules: audit and Toronto Sun: A 'scandal behind another scandal'.)

7. The McGuinty Municipal Property Assessment Corp. (MPAC) Scandal - Where on the McGuinty Government's watch, Ontario Families had their homes either significantly undervalued or significantly overvalued by the MPAC, resulting in either a huge loss of their home's value, or them being significantly overcharged for property taxes. When provided the auditor's report, the MPAC rejected investigating into the issue. In addition to their failures in providing the basic service for which they are employed, they also were caught in yet another eHealth-type expense scandal. (See: The Ottawa Citizen: Ontario auditor-general says MPAC shortchanges homeowners, hospital wait times not improving and National Post: Ontario's Audit.)

8. The McGuinty Children's Aid Society (CAS) Scandal - Where on the McGuinty Government's watch, Ontario working family tax dollars that were supposed to go towards vulnerable children in Ontario, were instead squandered on Luxury Vehicles, All-Inclusive Luxury Resort Vacations to the Caribbean and other vacation destinations, Gym Memberships and Executive Allowances for CAS Management. (See: CBC: Ontario children's aid societies misspent money, auditors allege, National Post / The Ottawa Citizen: Children's Aid funds misused, auditor says and Toronto Star: Opposition slams Ont. Liberals over CAS.)

9. The McGuinty Tire Tax - Yet another blatant lie by Dalton McGuinty where he said he would not implement a tire tax, and then went right ahead and implemented one (calling it a fee and not a tax, as to act like he didn't lie yet again). (See: Toronto Sun: Tired of all the taxes and Toronto Star - Wheels.ca: Costly tire recycling plan will replace one that only needs tweaking.)

10. The McGuinty Ontario Ministry of Health, Local Health Integration Networks (LHIN) and Ontario Hospitals Consultant Hiring & Expenses Scandal - Where under the McGuinty Government, yet again another eHealth-type of fiasco took place, where untendered contracts were awarded to consultants and lobbyists, in addition to lax expense controls leading to lavish world-wide vacations in thousand-dollar-a-night hotels, expensive lunches and boozy dinners all paid for by Ontario's Working Families. (See: Toronto Star: Ontario tightens lobbying rules after scathing report and Global TV: Ont. auditor general says rules on health consultants still not followed.)

11. The McGuinty Tax Collectors Getting $45,000 Severance Packages for switching their job titles from „Provincial” to „Federal” Scandal - Where when Dalton McGuinty implemented the HST in Ontario, he overlooked the severance packages that would be rewarded to Ontario's Tax Collectors who, though they would not be losing their jobs, would still get this massive payout from Ontario's Working Families (many of which can only dream about making $45,000 a year) for moving from the Provincial Ontario Government to the Federal Government. (See: Toronto Star: Tax collectors get $45K severance, keep jobs.)

12. The McGuinty Niagara Falls Commission Scandal - Yet another eHealth-type fiasco, where countless tax dollars from Ontario's Working Families were blown on fancy dinners, nights out, expensive hotels and countless other unethical expenses by Management at the Niagara Parks Commission, not to mention the usual untendered contracts and sole-sourced deals given to Liberal friends. (See: The Hamilton Spectator: Niagara Parks exec ran up $400,000 in expenses and Toronto Sun: Call in the auditor!: Blizzard.)

13. The McGuinty General Motors Auto Pensions Bailout - Where Dalton McGuinty, after rejecting for years that Ontario taxpayers wouldn't be expected to bail out the GM Pensions (as many Ontarians don't have pensions themselves), Dalton McGuinty like usual, went ahead and broke that promise and provided Ontario Working Family tax dollars to GM to bail out their auto pensions. (See: National Post: Canada may hold stake in GM until 2018.)

14. The McGuinty Nortel Pensions Bailout - Where again, Dalton McGuinty for years said that Ontario taxpayers shouldn't be expected to bailout the pensions of private companies, as many Ontarians don't have pensions themselves, went ahead and bailed out Nortel's workers' pensions in an effort to buy votes for a by-election. (See: CityTV: McGuinty Shrugs Off Accusations Of Vote-Buying With Nortel Pension Guarantee.)

15. The McGuinty Workers Safety Insurance Board (WSIB) Tax Increase - Where Dalton McGuinty's Government allowed the WSIB to mismanage itself so horribly, that after years of lax controls, the WSIB had to increase rates on Ontario Businesses in order to recover from its failures. (See: CTV: New Year brings hydro rebates in Ontario plus higher EI and CPP premiums and Northbay's The Bay Today: CFIB blasts the WSIB’s hike in payroll taxes.)

16. The McGuinty Nanticoke Coal Power Plant Shutdown Scandal - Where Dalton McGuinty, in the election in 2003, promised then to shut down all Coal Power Plants by 2007, and then later admitted to breaking that promise, and instead said they would all be shutdown by 2009. Now, in prep for the 2011 election, McGuinty is saying that all Coal Power Plants will be shutdown by 2014! Yet another blatant lie and broken promise by Dalton McGuinty against Ontario Working Families. (See: CBC: McGuinty takes blame for broken promise on coal plant closures and Toronto Sun: Dalton McGuinty’s mind games: Goldstein.)

17. The McGuinty Caledonia Scandal - Where the McGuinty Government has been turning a blind eye to an illegal protection racket run by militant natives who have assaulted citizens and police officers, and Dalton McGuinty has prevented them from taking back control of Caledonia, all for the fear of another Ipperwash type scandal (see: Ipperwash Crisis - Wikipedia). McGuinty has once again turned his back on Ontario Working Families, this time those living in Caledonia. (See: National Post: Caledonia redux and National Post editorial on Dalton McGuinty's Caledonia policy: 'The coward at Queen's Park'.)

18. The McGuinty G20 Scandal - Where Dalton McGuinty implemented illegal regulations to enable the police to detain people during Toronto's G20 summit without cause. Ontario Ombudsman Andre Marin said in regards to the McGuinty Government's G20 actions, „For the citizens of Toronto, the days up to and including the (June 26-27) weekend of the G20 will live in infamy as a time period where martial law set in in the city of Toronto, leading to the most massive compromise of civil liberties in Canadian history”. (See: OmbudsmanOntario.on.ca: G20 law was 'massive' breach of rights, Marin says (Toronto Star) and Toronto Star: Report details ‘shocking’ abuses at G20 summit.)

19. The McGuinty Local Health Integration Networks (LHIN) Review Delay Until After October Election - Where Dalton McGuinty purposely delayed the Auditor's review of McGuinty's much-loved LHINs, who via freedom of information inquiries has been found to be yet another eHealth type fiasco. The LHIN scandal is different in that many of the findings from the report happened after McGuinty implemented regulations to stop further eHealth type fiascoes. Where McGuinty has been protected before by saying these scandals happened before these new regulations, the LHIN scandals happened afterward, proving the continued complete lack of oversight and mismanagement by Dalton McGuinty of Ontario Working Families' tax dollars. (See: CBC: McGuinty says LHINs can do better and Newswire.ca: McGuinty Blocks LHIN Review to Hide Another eHealth-Style Insider Scandal.)

znalac2
(shkafishkafnjak)
30. mart 2013. u 15.07
20. The McGuinty Government has made Ontario Tuition Fees the highest in Canada - Ontario College/University Tuition fees have skyrocketed under Dalton McGuinty to become the highest in Canada, again making life extremely hard for Ontario's Working Families to send their children for post-secondary education. (See: CP24: Ontario university students paying highest tuition fees in Canada.)

21. The McGuinty Foreign Scholarships Scandal - Where Dalton McGuinty, after continuously raising College/University Tuitions for Ontario students and making Ontario Tuitions the highest in Canada, then goes and gives free scholarships to foreign students. (See: Toronto Sun: Don't send our scholarships to China: Zimonjic and Toronto Sun: PCs would flunk plan to fund foreign students.)

22. The Dalton McGuinty Auto Insurance Scandal - Where Dalton McGuinty promised to reduce Auto Insurance rates by 10% during the 2003 election, he instead has done the exact opposite increasing Auto Insurance rates in Ontario to skyrocketing heights, and at the same time has allowed the reduction of insurance coverage with those new higher rates. Yet another blow to Ontario Working Families by the Dalton McGuinty Government. (See: Toronto Sun: McGuinty's insurance debacle and Globe and Mail: New auto insurance rules in Ontario.)

23. The Dalton McGuinty Eco-Fee Scandal - Where Dalton McGuinty snuck in an Eco Tax along with the HST, and after outrage in Ontario from Ontario Working Families, along with a completely failed implementation by the Ontario Stewardship, he back-pedaled on the new (supposedly necessary as per McGuinty) tax. (See: National Post: Poor communication blamed for failed Ontario eco fee and Toronto Sun: Eco fees recycled.)

24. The Dalton McGuinty Harmonized Sales Tax (HST) - Where Dalton McGuinty imposed yet another tax, this time a massive tax that was applied on almost everything including: Home Heating Costs, Gasoline, Natural Gas, Electricity, Tobacco, Quit Smoking Aids, Newspaper/Magazine subscriptions, Fast Food (over $4), New Homes (over $400,000), Vitamins, Used Vehicles, Internet Access, Airfare, Bus fare, Taxi Fares, Haircuts, Hotels, Legal Services, Gym Memberships, Accountants, Real Estate Commissions, Lawn Care and Landscaping, Dry Cleaning, Snow Removal, Campsites, Audio Books, Home Renovations, Massage Therapy, Green fees for golf, Live Theatre, Hockey Rink fees and Hall rentals, Funeral Services, Fitness Trainer, Esthetician Services, Hunting and Fishing Licenses. This is how Dalton McGuinty helps Ontario's Working Families, by increasing taxes on everything they depend on to survive. (See: Dalton Sales Tax - Dalton's Sales Tax on Everything - HST News and Ontario Ministry of Revenue: What's Taxable Under the HST and What's Not?.)

25. The Dalton McGuinty Smart Meters Scandal - Where Dalton McGuinty forced Ontarians to have so-called „Smart Meters” installed which impose Time-of-use pricing on Ontario's Working Families. The Time-of-use pricing is forcing Ontario Working Families to do their dishes at midnight, their laundry at 3am, and ensure to get their kids dressed and off to school before 7am in the morning, if Ontario Families don't want their electricity bills to skyrocket. The Smart Meters have cost Ontarians $1 Billion to implement, and have failed to provide the cost savings that they were touted to be able to do originally (even when Ontarians abide by the time-of-use recommendations). Not only is this hurting Ontario's Working Families, but it is making life impossible and completely unaffordable for Ontario's Seniors. (See: Toronto Star: What’s the return on $1 billion smart meter investment? and Financial Post: Lawrence Solomon: McGuinty’s reality.)

26. The Dalton McGuinty Skyrocketing Hydro Rates and disgraceful 10% so-called rebate Scandal - Under Dalton McGuinty, Ontario's Working Families have seen their Hydro rates skyrocket, firstly because of McGuinty's failed Green Energy experiments, second because of bloated Unionized Workers wages and benefits, and third because again of severe mismanagement by the McGuinty Government. As if the constant increases Ontario Working Families have already seen aren't enough, his Government has provided another low-ball estimate of rates rising another 46% over the next 5 years. Obviously this is just a pre-election number that will most likely increase 10 times over after the election. In addition, Dalton added his HST on top of these increasing rates, adding another 8% on top! Then, in order to manipulate Ontario's Working Families, McGuinty gave back a 10% rebate (for 5 years only mind-you), and made sure to glorify it on Ontarians' Hydro Bills, in yet another disgraceful attempt to manipulate Ontario's Working Families. (See: Toronto Sun: Expect a 46% hydro rate hike and CityTV: Hydro Rates Set To Skyrocket Over Next Five Years.)

27. The Dalton McGuinty Offshore Wind Turbines Scandal - Where Dalton McGuinty forced Ontarians to accept that Offshore Wind Turbines would be created, completely dismissing health concerns raised by Ontario Working Families (citing studies that had been done which proved the contrary), and now just before an election he suddenly says that they are postponing it to perform a study on their safety? Typical McGuinty. Not only did McGuinty hurt Ontario Working Families with this flip-flop, he also hurt Ontario Businesses who invested in this technology only to see it scrapped, and also weakened Ontario's Global Reputation as it can no longer be trusted to follow through on its initiatives. (See: CBC: Wind farm decision not election-related: McGuinty and Globe and Mail: Ontario’s wind power ‘flip-flop’ draws ire.)

28. The Dalton McGuinty Green Energy Strategy for Solar Power in Rural Ontario Scandal - Where Dalton McGuinty offered Ontario Working Families in Rural Ontario 80 cents per kWh if they implemented small solar power installations on their properties, only to renege on that deal and chop that rate to 58.8 cents, after many Ontarians already invested in the technology... Suddenly Ontario Working Families won't get that return on investment in the time they were told. Now Ontarians are looking at timelines of over a decade, and still after this latest price change, that is not even certain. In addition to the rate slashing, many Rural Ontarians are now being told that their contracts can no longer be fulfilled, after they've invested their retirement incomes into these Solar Power Systems. This is how Dalton McGuinty protects Ontario's Working Families. (See: Toronto Sun: Dalton McGuinty 's solar chop: Woodcock, Globe and Mail: Ontario's search for a solar system and CBC: Ont. goes ahead with large green energy projects.)

29. The Dalton McGuinty Samsung Deal Scandal - Where Dalton McGuinty awarded the Korean Conglomerate Samsung with „the mother of all sole-sourced untendered contracts”, a sweetheart deal worth $7 Billion to develop Green Energy Technology in Ontario. In exchange for the deal, Samsung will get Ontarians to pay significantly higher feed-in-tariff energy rates for the next 25 years. Is this looking out for Ontario Working Families? What about looking out for Ontario businesses that could have done the same work that Samsung is being allowed? (See: Toronto Star: Tories seek probe into $7B green energy deal and Globe and Mail: Ontario's green deal raises ire of energy developers.)

30. The Dalton McGuinty Ontario Sunshine List's Skyrocketing Total Membership Scandal - Where under Dalton McGuinty, the number of Ontario Public Sector workers making $100,000 or more has skyrocketed from just over 12,000 members in 2003, to a whopping 63,371 in 2009, or in total, an over 500% increase while Dalton McGuinty has been Premier. And Ontario's Working Families wonder how taxes seem to constantly rise under Dalton McGuinty while the services provided in return are decreasing, because in addition to his Government's countless failures (see the 29 points above), he still finds a way to give them raises and push them into the six-figure salary range. Meanwhile, Ontario Working Families pick up the bill and can't afford to live. This is how Dalton McGuinty protects Ontario's Working Families? (See: Toronto Star Clipping from 2003: Strike overtime helps pad province's $100,000 club ; More than 12,000 on 'sunshine' list; Hospital network CEO highest paid and CTV: AGO gallery CEO is No. 3 on province's sunshine list.)

After these 30 examples of failures by the Dalton McGuinty Ontario Liberal Government, you would think that this would be it, but truthfully, there are many, many, many more examples of his failures that have cost Ontario's Working Families their entire livelihood.

Again, if you feel that I have missed any Scandals, Broken Promises or New Taxes/Fees, please feel free to add a comment describing the Scandal, and also providing any supporting websites that readers can visit to get further details.

Also, below I've listed some of my other related previous posts that you may find useful in prep for this year's coming Provincial Election:

Reminder: Dalton McGuinty's 2003 & 2007 Election Promises/Platforms
Disgraceful „Working Families Coalition” Defines Anti-Family in Ontario...
Premier Dalton McGuinty Hilariously Promises No New Taxes if Reelected!
Ontario Liberal Machine Working Overtime To Restrain Ford Nation...
Ontario: Every Child Should Be Treated Equally, Especially in Education...
Rob Ford Will End Dalton McGuinty's Reign For Snubbing Toronto Again
Baby Boomers Will Revolt Against McGuinty Liberals in 2011 Ontario Election
Dalton McGuinty's Energy Policy Costs Ontario 1680% Extra for Electricity!
The McGuinty Government Fails Ontarians With Mental Health Issues...
Tim Hudak to Scrap Dalton McGuinty's Eco Fees When Elected in 2011!!
McGuinty's Former Deputy Premier George Smitherman Caused Ontario's Skyrocketing Electricity Rates...
Ontario Eco Fees FAIL to Divert Hazardous Materials from Landfills...
Eco Fees Trashed! Another McGuinty Government Fiasco...
McGuinty Pushing All Ontario Ministries to Add More Fees
Beware of the Dalton McGuinty HST Manipulation Machine...
McGuinty Screws the Natives with HST and Blames the Feds??
McGuinty Re-Election in 2011 = 15% HST in Ontario... Bet on it!!
The 2010 Ontario Sunshine List is Out! Here's The Link...
McGuinty's Campaign of HST Manipulation has Begun..
McGuinty burns another $1.6 Million on HST Manipulation..
Dalton McGuinty is Burrying Ontario...

Taurus
30. mart 2013. u 22.20
The manufacturing sector helped drive the Canadian economy’s return to better than expected growth in January after ending 2012 with a mild contraction in December.

However economists cautioned that growth remained below the two per cent pace for the year expected by the Bank of Canada.

Statistics Canada said Thursday that Canada’s gross domestic product grew by 0.2 per cent in the month after shrinking 0.2 per cent in December, beating the 0.1 per cent gain that had been predicted.

CIBC World Markets economist Emanuella Enenajor said the manufacturing sector showed surprising strength given previous reports of softer sales, but cautioned that growth was still not as strong as some have expected.

„While today’s data suggest Q1 GDP could track somewhere in the neighbourhood of 1.5 per cent — an acceleration from the pace seen in prior quarters, that’s still softer than the Bank of Canada’s outlook,” Enenajor said in a brief note.

In its latest outlook, the central bank said it expected growth to gain momentum as the year progresses and result in 2.0 growth in GDP this year followed by 2.7 per cent growth in 2014 — more optimistic than other estimates.

The Organization for Economic Co-operation and Development said Thursday that it expected the Canadian economy to expand 1.1 per cent in the first three months of this year and by 1.9 per cent in the second quarter.

Hurt by the December contraction, real domestic product output moved ahead by just 0.6 per cent in the fourth quarter of 2012 following a marginally better gain of 0.7 per cent in the third.

TD Bank economist Sonya Gulati said despite the better than expected results for January it was too soon to celebrate the economic recovery.

„Manufacturing was a particular area of strength, but this comes after several months of disappointments,” Gulati said.

„The sector has struggled to gain traction over the past year as global economic uncertainty has continued to dominate. Optimism about the health of the U.S. recovery is gaining momentum, but this will likely show up in the numbers in the second half of the year.”

Manufacturing, the biggest contributor to January’s gain, expanded 1.2 per cent following a 1.9 per cent decline in December.

Statistics Canada reported that Canadian goods production in January grew 0.4 per cent as mining, quarrying and oil and gas extraction also increased while there were declines in agriculture, the forestry sector and construction.

The output of service industries was up 0.2 per cent in January, mainly as a result of gains in wholesale trade, arts and entertainment and the public sector.

Enenajor said that the gains in arts and entertainment probably reflected the return of NHL hockey after the National Hockey League and its players union reached a contract settlement and began a shortened playing season.

Read more:
Taurus
30. mart 2013. u 22.22
The Canadian dollar was higher Thursday amid figures from the start of the year that showed the economy grew at a faster than expected clip after faltering at the end of 2012.

The loonie was up 0.12 of a cent to 98.5 cents US after Statistics Canada reported that real gross domestic product in January grew by 0.2 per cent. That was better than the 0.1 per cent gain economists had expected and followed a 0.2 per cent dip in December.

„The big surprise in the report was the 1.2 per cent increase in manufacturing production — with that sector seeing gains in activity despite softer sales,” said CIBC World Markets economist Emanuella Enenajor.

„While today’s data suggest Q1 GDP could track somewhere in the neighbourhood of 1 1/2 per cent, an acceleration from the pace seen in prior quarters, that’s still softer than the Bank of Canada’s outlook.”

Other data showed that the U.S. economy grew at a slightly faster but still anemic rate at the end of last year.

The Commerce Department says the economy grew at an annual rate of 0.4 per cent in the October-December quarter. That was slightly better than the previous estimate of 0.1 per cent growth. The revision reflected stronger business investment and export sales.

Commodity prices were mixed with the May crude contract on the New York Mercantile Exchange down 19 cents to US$96.39 a barrel.

May copper gained a penny to US$3.45 a pound while June gold bullion gained $4.80 to US$1,602.40 an ounce.

Traders also looked to Cyprus as banks reopened after a nearly two-week shutdown while the tiny Mediterranean country negotiated a bailout agreement with international creditors. The pact will see many large depositors loše a big chunk of their money.

The mood was generally calm despite some long queues at certain branches. Cyprus has imposed capital controls to prevent a run on the banks, the first time such measures have been taken since the euro was established in 1999.

Cyprus secured the bailout agreement on Monday, but early relief gave way to concern that it might become a model for dealing with other heavily indebted eurozone countries in future.

Meanwhile, uncertainty over the political future of Italy put pressure on the euro. Following inconclusive elections about a month ago, the country is still without a government, and that has raised concerns over its future economic path. Italy is the third-largest economy among the 17 countries that use the euro.

The U.S. economy grew at a slightly faster but still anemic rate at the end of last year. However, there is hope that growth accelerated in early 2013 despite higher taxes and cuts in government spending.

The economy grew at an annual rate of 0.4 per cent in the October-December quarter, the Commerce Department said Thursday. That was slightly better than the previous estimate of 0.1 per cent growth. The revision reflected stronger business investment and export sales.

Analysts think the economy is growing at a rate of around 2.5 per cent in the current January-March quarter, which ends this week.

Steady hiring has kept consumers spending this year. And a rebound in company stockpiling, further gains in housing and more business spending also likely drove faster growth in the first quarter.

The 0.4 per cent growth rate for the gross domestic product, the economy's total output of goods and services, was the weakest quarterly performance in almost two years and followed a much faster 3.1 per cent increase in the third quarter. The fourth quarter was hurt by the sharpest fall in defence spending in 40 years.

For all of 2012, the economy grew 2.2 per cent after a 1.8 per cent increase in 2011 and a 2.4 per cent advance in 2010. Since the recession ended in mid-2009, the economy has been expanding at sub-par rates as a string of problems from higher gas prices to Europe's debt crisis have acted as a drag on the U.S. economy.

Growth appears to be strengthening this year even after taxes increased on Jan. 1 and automatic government spending cuts totalling $85 billion started to take effect on March 1. The Congressional Budget Office has estimated that the combination of tax increases and spending cuts could trim economic growth this year by about 1.5 percentage points. The CBO is predicting just 1.5 per cent growth for 2013.

But so far, the economy is showing signs of holding its own against the fiscal drag.

Employers have added an average of 200,000 jobs a month since November. That helped lower the unemployment rate in February to 7.7 per cent, a four-year low.

Economists expect similar job gains in March, in part because a measure of unemployment benefit applications fell this month to a five-year low.

Sales of previously occupied homes rose in February to the highest level in nearly three years, while builders broke ground on more houses and apartments. Annual home prices jumped in January by the most since June 2006, according to a closely watched measure.

Stock prices have surged. On Wednesday, the Standard & Poor's 500 index was within two points of its all-time high.

All of that is making consumers feel wealthier, which could lead to more spending. Consumer spending drives 70 per cent of economic activity.

The Federal Reserve still thinks the economy needs aggressive measures to bolster growth. Last week it stood by its plan to keep a key short-term interest rate near zero until unemployment drops below 6.5 per cent. The Fed also left unchanged its plan to keep buying $85 billion in bonds until it sees a substantial improvement in the job market.

The slowdown in business inventories trimmed 1.5 percentage point from growth in the fourth quarter and the reductions in defence spending cut another 1.3 percentage point from growth.

Consumer spending was growing at a 1.8 per cent rate in the fourth quarter, slightly better than the 1.6 per cent increase in the third quarter but down from last month's estimate that consumer spending was growing by 2.1 per cent.

That revision was offset by upward revisions in business investment spending on structures and equipment and by stronger sales of U.S. exports.

The government first estimated two months ago that the economy had contracted at an annual rate of 0.1 per cent in the fourth quarter, a decline that was erased by the revisions.

The government will release its first look at first quarter growth on April 26.

Read more:
Taurus
30. mart 2013. u 22.24
Canada is expected to lag several Group of Seven countries in the first quarter even as the global economy begins to rebound, the Organization for Economic Co-operation and Development said Thursday.

The international economic think-tank estimates that the Canadian economy will show growth of just 1.1 per cent in the first three months of this year, much slower than the United States or Japan and below the G7 average.

However, it is expected to pick up steam and grow by 1.9 per cent in the second quarter, slightly above the average.

Statistics Canada reported later Thursday that Canada's gross domestic product grew by 0.2 per cent month-to-month in January, the beginning of the first quarter. The agency's report for the full quarter won't be out until May 31.

The G7 countries — Canada, the United States, Japan, Germany, Britain, France and Italy — are expected to post an average growth rate of 2.4 per cent in the first quarter ending March 31 and 1.8 per cent in the second ending June 30.

The OECD believes the U.S. economy advanced 3.5 per cent in the first quarter, which ends this month, but that its growth will moderate in the second quarter to 2.0 per cent.

Likewise, the OECD expects Japan's growth will be a robust 3.2 per cent in the first quarter but slow in the second to 2.2 per cent.

Among the European G7 countries, Germany will be the only one growing faster than Canada — 2.3 per cent in the first quarter and accelerating to 2.6 per cent in the second.

The U.K. economy is expected to have only 0.5 per cent growth in the first quarter and 1.4 per cent in the second, while France's economy is expected to contract by 0.6 per cent in the first quarter then expand by a modest 0.5 per cent in the second.

Italy's economy is expected to shrink in both quarters, dropping 1.6 per cent in the first and 1.0 per cent in the second.

In an interim assessment that focused on the G7, the OECD said that the European Central Bank needs to do more to encourage banks to lend and economies to grow.

It notes that countries that use the euro are making progress in reducing their debts, but that some should be allowed to meet their targets more slowly to temper the impact on their economies.

The Canadian dollar moved lower near midday Wednesday as the latest inflation numbers showed the largest monthly increase in consumer prices in more than 20 years.

The loonie was down 0.07 of a cent to 98.46 cents US, after rising as much as 0.13 in the morning.

The latest data from Statistics Canada showed that the annual inflation rate in February jumped more than expected to 1.2 per cent from 0.5 per cent a month earlier.

Economists had expected a gain of 0.8 per cent.

„While today's figures are much stronger than expected, they still track a pace that should raise little worry for the Bank of Canada — and still point to continued slack in the economy,” CIBC economist Emanuella Enenajor said in a note.

Concerns about the future of Europe's economy were affecting the value of the euro.

Europe's main currency fell after efforts to form a coalition government in Italy were abandoned by centre-left leader Pier Luigi Bersani. Meanwhile, Cyprus worked to iron out the final details to reopen its banks on Thursday after a nearly two-week closure as it struggled to come up with a bailout agreement.

The euro was down 0.8 of a cent to US$1.2781 at mid-morning, according to the Bank of Montreal.

In commodities, April gold bullion rose $6.10 to US$1,601.80 an ounce while May copper lost 1.2 cents to US$3.44 a pound.

The May crude contract on the New York Mercantile Exchange fell 51 cents to US$95.83 a barrel.

Read more:
znalac2
(shkafishkafnjak)
10. april 2013. u 01.14
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