From Chart of the Day - :
Despite a host of concerns (weakening economy, softening housing market, geopolitical issues, etc.), the Dow made a new record high today. For some perspective, today's chart presents the current trend of the Dow. As the chart illsutrates, the rate of the Dow rally has been steadily increasing since the end of 2004.As far as the U.S. deficit:
The U.S. budget deficit will narrow to $205 billion this year, the lowest since 2002, a Bush administration official said.I'm no economist, so I welcome any comments explaining Senator Conrad's comments.
Rising tax revenue is shrinking a budget shortfall that the government has posted for the past six years. President George W. Bush pledged to balance the federal budget by 2012 by curbing spending and keeping the economy growing. Costs for the wars in Iraq and Afghanistan are running about $12 billion a month, limiting the reduction in the deficit.
Democratic leaders in Congress said Bush's tax cuts, his failure to overhaul entitlement programs and the billions of dollars spent on the Iraq war have put the budget on an unsustainable path.
``Nothing in the administration's deficit announcement changes the failed fiscal record of President Bush,'' Senate Budget Committee Chairman Kent Conrad said in a statement earlier today. ``He has increased spending by nearly 50 percent since taking office, while at the same time repeatedly cutting taxes primarily on the wealthiest.''