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...headed for, policymakers don't want it to happen all at once. The Fed's rate cuts and the roughly $145 billion stimulus plan currently being mooted by the White House and Congress are all about pumping enough demand into the economy to make the journey downhill smooth and gradual. Consumer spending used to make up about 67% of all the economic activity in the U.S., but over the past few years, it's ratcheted up to around 72%. "If we take the 5 percentage points out this year, it will be the mother of all U.S. recessions," Roach says...

Author: /time Magazine | Title: Can the World Stop The Slide? | 1/24/2008 | See Source »

...headed for, policymakers don't want it to happen all at once. The Fed's rate cuts and the roughly $145 billion stimulus plan currently being mooted by the White House and Congress are all about pumping enough demand into the economy to make the journey downhill smooth and gradual. Consumer spending used to make up about 67% of all the economic activity in the U.S., but over the past few years, it's ratcheted up to around 72%. "If we take the 5 percentage points out this year, it will be the mother of all U.S. recessions," Roach says...

Author: /time Magazine | Title: Can the World Stop the Slide? | 1/23/2008 | See Source »

...Americans, a global slowdown, short of a recession, wouldn't be all bad news. Exporters would benefit, though they account for only 12% of the economy. A gradual global slowdown would also give the Fed far more room to maneuver without the threat of stoking inflation. But there are downsides too: the U.S. would see high energy prices as Asia's demand for oil kept soaring, a continued dollar slump as low interest rates made it less attractive to hold dollar-denominated securities, and the threat of rising inflation as a weak dollar made imports more expensive. And a global...

Author: /time Magazine | Title: Can the World Stop the Slide? | 1/23/2008 | See Source »

Brown says that initially the plan was to reduce the contractor's take from 25% to a 4%-8% range, upon renewal of each contract. However, he says that officers spoke out and now the reduction is going to be more gradual, from 25% to 20%, and then to 10%. There will be cuts for the salary of checkpoint supervisors as well. "You are asking them to risk their lives and then cutting their salary down. It's not fair," says Brown, who regularly stops by his contractors' homes in the evening to sip small cups of sweet, hot Iraqi...

Author: /time Magazine | Title: The U.S. Financial Crisis — in Iraq | 1/22/2008 | See Source »

What kind of success in Iraq do you expect to happen by the time we get to the general election? Well, I think a gradual progression in reducing casualties. More and more government control. More success against al-Qaeda. Slow, but receptable progress in the government functioning -... the usual indications and benchmarks of a successful counter-insurgency...

Author: /time Magazine | Title: Q&A: John McCain on His N.H. Victory | 1/9/2008 | See Source »

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