Economy – The Third Horseman

CNS News - The ranking Republican on the House Budget Committee said the U.S.CNSNews.com in a video interview. “All the actuaries, all the objective scorekeepers of the federal government, are predicting this.” To back up this claim, Ryan cited an estimate by the non-partisan Government Accountability Office that says the government faces a $53-trillion shortfall to cover the costs of promised benefits in its entitlement programs. government is headed toward bankruptcy if it stays on its current fiscal course. “We know that for a fact,” Rep. Paul Ryan (R-Wis.) told

WASHINGTON (AP) — The federal budget deficit soared in July, pushed higher by economic stimulus payments and $15 billion in outlays to protect depositors at failed banks. The Treasury Department reported that the deficit for July totaled $102.8 billion, nearly triple the $36.4 billion deficit recorded in July 2007. The Treasury said outlays were pushed up by $15 billion because of payments the Federal Deposit Insurance Corp. made to depositors at failed banks. Besides the payouts by the FDIC, government outlays were increased by the final bulk mailings of government stimulus payments in July. So far this year, the budget deficit totals $371.4 billion, more than double last year's deficit through the same time period of $157.4 billion.

BRUSSELS — The euro-zone economy shrank 0.2% in the second quarter, EU statistics showed Thursday, raising recession fears as Germany, France and Italy braked sharply. High fuel and food prices restrained consumer spending and worse seems yet to come. European business and consumer confidence was at the lowest level in more than five years in July, inflation was hovering at the highest point since 1996 and the jobless rate was climbing from an all-time low. Germany, the region's largest economy, shrank 0.5% in April-June from the previous quarter. France and Italy were both down 0.3%. German growth dropped for the first time in nearly four years.

WASHINGTON — The number of homeowners stung by the slumping housing market jumped last month as foreclosure filings were 55% higher than a year ago, according to data released Thursday. Nationwide, more than 272,000 homes received at least one foreclosure-related notice in July, up from about 175,000 in the same month last year and up 8% from June, RealtyTrac said. That means one in every 464 U.S. households received a foreclosure filing last month.

WASHINGTON — Consumer prices jump 0.8% in July, leaving inflation rising at fastest rate in 17 years. The Labor Department said July's jump in the consumer price index followed a 1.1% jump in June. Prices were up 5.6% from a year ago, sharpest year-over-year rise since 5.7% in January 1991. Energy prices rose 4% in July after a 6.6% June gain and were up 29.3% on a year-over-year basis. Food costs rose 0.9% following a 0.8% June increase and put food costs 6% higher than a year ago.

NEW YORK — Oil prices fell again Tuesday, dampened by a stronger U.S. dollar and more evidence that developed countries such as the United States are cutting back on their energy use. Light, sweet crude dipped by $1.44 to settle at $113.01 a barrel on the New York Mercantile Exchange, after falling as low as $112.31, a new three-month low. Oil is now nearly $35 below its July 11 record high of $147.27. However, light, sweet crude rose $2.91 to $115.92 a barrel on the New York Mercantile Exchange Wednesday after the government said U.S. crude supplies fell unexpectedly last week. The International Energy Agency cautioned that it is too early to determine whether the recent fall in oil prices is a longer-term trend. It said demand in developing countries could offset declines in developed nations, and that it sees Chinese oil demand continuing to grow at a robust pace. High gas prices prompted Americans to drive fewer miles for the eighth consecutive month, the government reported Wednesday. Drivers logged 12.2 billion fewer miles in June compared with June 2007, a 4.7% decline, according to the U.S. Department of Transportation.

WASHINGTON (AP) — Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new report from Congress. Collectively, the companies reported trillions of dollars in sales, according to GAO's estimate. The GAO study did not investigate why corporations weren't paying federal income taxes or corporate taxes and it did not identify any corporations by name. About 25% of large U.S. corporations — those with at least $250 million in assets or $50 million in receipts — did not pay corporate taxes.

WASHINGTON (AP) — After months of rising food prices, there may be some relief coming with farmers on track to produce the second largest corn crop and fourth largest soybean crop in history. In its first estimates this year based on field visits and farmer surveys, the U.S. Department of Agriculture sharply raised its estimate Tuesday of corn production and said "nearly ideal" weather has helped Midwestern farmers recover from June's devastating floods. That recovery eventually may lead to lower prices for corn and soybeans, which in turn could provide some relief to meat producers who use the grains for animal feed. It won't happen soon, though. Even with the USDA's current projections and an easing in grain prices recently, prices of many crops are double what they were a year ago and many chicken and meat producers have cut production.