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Show vweexw eet “THE OGDEN VALLEY NEWS November 15, 2005 Zions Global Economic although still impacted by a laundry list of challenges that never seem to disappear. THE BOTTOM LINE? economic growth during the past 24 months has been i impressive, with plenty of government stimulus in play. Solid growth is likely to continue. In addition, we expect: a rising budget deficit in 2006, tied to post-Katrina spending . . . solid employment oe . modest inflation pressures. . . steadi- ly increasing short-term interest rates, with p slightly higher long-term rates. anxious but impressive global marketplace. WHY A U.S. TRADE DEFICIT? The U.S. trade deficit with the world set a record in 2004 for the third ee year, reaching uncharted waters of $618 billion. The trade imbalance this year will be somewhat larger. U.S. companies = roughly $100 billion of goods and services to the world monthly. Other Ameiiean companies import roughly $156 billion of goods and services from around the world, including oil, _cars, electronic _ goods, clothes, etc. mists large trade deficit, or the even larger current account deficit. It is not a perfect world. A DIFFERENT VIEW Does the large U.S. trade imbalance suggest that U.S. firms are just not very competitive with those around the world? To many “experts” it does. To others (including me), the trade deficit actually reflects U.S. economic strength and global economic anxiety. U.S. consumers have been aggressive buyers of goods and services in recent years. During the past decade, Americans have benefited from strong job gains, higher stock prices, minimal inflation, and rising home equity. Consumers who feel good spend money...on both domestic- and foreign-made goods and services. ggish economic performance in various parts of the world and enormous political change in many countries in recent years have scared hundreds of millions of foreign consumers. Under these conditions, the natural instinct is to save— political powder keg, with production now in decline. Various Latin American nations are benefiting from capital now returning for investment, a sign of rising confidence. Canadian economic growth has been modest, with politicians and business leaders worrying about the implication of the strong Canadian dollar. The Mexican economy is growing at a reasonable clip, versus spen Aggressive consumer spending 5 THE GLOBAL ECONOMY Modest slowing is likely in the global economy. Most forecasts see slightly weaker global economic growth during 2005’s final few months and throughout 2006, following impressive growth in 2004. Recent performance is the strongest since the late 1970s. As before, risks to this view include any major new terrorist il) and a worsening A discussion of the Pacific Rim must begin with Japan, a nation that accounts for more than half of all Asian economic output and still ranks as the world’s second largest. Japan returned to modest economic growth during the past 12-15 months following “the lost decade” of economic stagnation. Chinese leaders are seeing some success in slowing the economy down. China’s appetite for all types of commodities, including oil, steel, copper, and cement, which had been almost insatiable, has finally slow India’s economy continues to perform well, ccess in developing Most. other economies in the Pacific Rim are performing reasonably well. The European economy continues to disappoint. Kingpins Germany and France struggle with weak growth and jobless rates near 12.0% and 10.0%, respectively. “Old Europe” faces mounting pressures to constrain future Goren spending for rent and mpending retirees...spending they simply cannot afford. U.K. growth is moderate. issian economy is growing, a beneficiary of high oil prices and rising oil uction. President Putin’s moves to consolidate power have the global community watching him closely. Argentina, Brazil, ane Chile are doing What This Valley Needs is A GOOD MEXICAN And nnow RESTAURANT! we > have one! Page 15 Outlook Japan?...Hardly. Most Japanese consumers save like there’s no tomorrow and shun spending. Consumers across the Pacific Rim, including hundreds of millions in China and India, have also been more prone to save than to spend Consumers across Europe, the former Soviet block, and in South America have performed similarly, saving as opposed to spending in most cases. The result has een stagnant purchases of goods and services from the enormous amount of global savings, and the resultant huge U.S. trade imbalance Renewed weakness of the U.S. dollar versus many of the world’s major currencies, should it return, would lead U.S. exports higher, as foreigners took advantage of “cheaper” U.S.-made goods and services. Prior dollar weakness led to frequent stories of Europeans visiting our East Coast and aggressively spending money on goods and real estate. e who argue that this nation must run a trade surplus, I say fine. All we need to get there is a good, long, deep, painful recession, and we will. In fact, the last time this nation ran a trade surplus with the world, we were in recession; hardly a good trade-off. The trade deficit actually reflects U.S. economic strength and global economic anxiety. Note: Insight is released by A. Sco sense president and chief cpaendtee officer of Zions First National Bank, and wr = by Jeff Thredgold, economic consultant to Zions First National Bank and president of Thredgold Economic Associates. Graphics and layout are produced by Kendall Oliphant, with research by Shawn Thredgold. Copyright © 2005 Zions First National Bank. Reproduction without permission is strictly prohibited. URGENT NEED! Coats for Children Service missionaries are collecting coats for children in the Ogden area in infant sizes through 4X. Winter is coming and there are many who do not have a coat or other proper winter gear such as hats, gloves, and/or boots. If you can donate any of these items that are clean and in good repair, please leave them at the Valley Market in Eden; a designated box or shopping cart will be available for their collection. Or, you may take your donations to the following: Jolene Allen 745-3288 (Liberty) Delores Manley 745-1217 (Eden) Sandy Walker 745-2261 (Huntsville) NOTICE OF PUBLIC HEARING The Wolf Creek Water Company and Wolf Creek Water Conservancy Inc. propose changes to its customer rates effective January 1, 2006. A public hearing is scheduled for November 30, 2005, at the Public Service Commission Hearing Room, 4th Floor, Heber Wells Building, 160 East 300 South, Salt Lake City, Utah. The hearing is open to the public and at 1:30 p.m. any customer or public witness may address the Honorable Steve F. Goodwill of the Public Service Commission. The proposed rates are as follows: Wolf Creek Water Company Culinary Water Rate (Monthly Rate) Base charge per month including the first 8,000 gallons: Usage a ve month: 001 gallons to 20,000 gallons: $2.00 on 001 gallons to 40,000 gallons: $3.50 40,001 gallons to 60,000 gallons: $5.00 60,001 gallons to 80,000 gallons: $6.00 >80,001 gallons: $7.00 Service Connection Fee: Annual Stand-By Fee: $20 per per per per per 1,000 1,000 1,000 1,000 1,000 gallons; gallons; gallons; gallons; gallons. $2,0 $120 Wolf Creek Water Conservancy, Ine. Mesidentia! eeneaion arge per month including the first 20,000 gallons: $15 ae ae per month: 20,001 gallons to 40,000 gallons: $1.50 per 1,000 gallons; 40,001 gallons to 60,000 gallons: $3.00 per 1,000 gallons; 60,001 gallons to 80,000 gallons: $4.00 per 1,000 gallons; 80,001 gallons to 100,000 gallons: $6.00 per A a gallons; 100,001 gallons to 120,000 gallons: 0 per 1,000 gallons; 120,001 gallons to 140,000 gallons: i. o per 1,000 gallons; ain oy gallons: $20.00 per 1,000 gallons Service ConnectionF $2, ervice oe fe for Patio Springs, Eden Hills, Snowflake: $3,000 Annual Stand-By $180 The Rusty Cactus will take the place of the Living Room at Wolf Creek Resort and offer the popular authentic Mexican cuisine of Thursday nights EVERY NIGHT! There are some new menu items as well as some favorites from the Living Room menu, and of course, great beverages. Come experience the best Mexican food ( in Utah any night of the week! ge The Rusty Cactus is open nightly at 5 p.m. Reservations ate recommended. We Ye 3900 N. Wolf Creek Dr. 801-745-3737 North Fork 400,000, P pe gth Green FOCK PF: REsoR A full copy of the rate filing may be obtained from Wolf Creek’s business office located at 3718 North Wolf Creek Drive, Eden, Utah. You may also call Wolf Creek at 745-3435 with any questions or concerns. BRANDI HAMMON Local Innovative Specialist 000 | Bailey Alcres $399,000 Durfee Creek $299,000 _ 801-389-4438 ach PINEVIEW ESTATE.INFO 5 Lots in the Preserve from $185,000 REAL yw Liberty $749,000 a Creek $299,000 ESTATE Wolf Creek lots available 2 Golf Course, 2 Lake View, 1 Mountain View frce Moaket Unobypis Sellers Mone Worrentg, Inchuded feclnred on wuw.recltor.com Vnitual lour frcluded |