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Time to Slow Down? - M&A and the US Economy: The pace of M&A activity has been impressive recently, and analysts have predicted that M&A deal activity will reach record levels by the end of 2006. One factor that may change the rate of deal activity is a general slowdown in the US economy. According to a statement made in New York by Federal Reserve Chairman Ben Bernanke, the US economy is positioned for moderate growth, but remains at risk of inflation. Consumers are not the only ones impacted by economic slowdown. According to the Commerce Department, businesses are also beginning to curtail spending on major purchases. While changes in the economy may make buyers more cautious, it is too early to call for a major slowdown in deal activity.

U.S. Economy was Remarkably Strong in 2005: The US economy was stronger than anybody anticipated. The city of New Orleans was directly in the path of Hurricane Katrina. New Orleans had about 1.3 million people, accounting for about 0.5% of the country's GDP. These people have not been working, and these goods and services have not been produced since last September. This is a direct loss to the US economy. Six months after the disastrous hurricanes, Americans were left with the direct impacts on New Orleans. The indirect impacts on energy are mostly over, and the forecasts for 2006 are quite optimistic. Here are some of the Top 10 economic predictions for 2006: 1. Solid growth will last for at least another year. 2. The US will, once again, outpace Europe and Japan. 3. The US current account deficit will plumb new depths again. 4. The US dollar will end the year lower than at the start.

Best Economy: In a time of high fuel prices, I feel fortunate that I fly a Mooney, one of the world's most fuel-efficient production airplanes. Braly and Roehl preach that mixture settings in the vicinity of 25 to 50 degrees on the lean side of peak can actually be beneficial, keeping the plugs clean, reducing fuel burn by as much as 15% and running the engine cooler rather than hotter.

Politics and Money: Since 1944, when the Congress of Industrial Organizations set up the first political action committee (PAC) to help re-elect Pres Franklin D. Roosevelt, PACs have raised billions of dollars for thousands of candidates and causes. Some see these organizations and the money they inject into elections as both a symbol and the cause of corruption. But the author believes the opposite is true: He sees a well-regulated process that successfully engages a broad range of Americans in political system, while weeding out undue influence. PACs are a safe, mainstream way for citizens to meaningfully engage in politics. Yes, a large amount of money flows through PACs, but transparency accompanies these transactions. Politics is a human endeavor, and will always reflect the best and worst of people. But, through the mechanism of PACs, hit upon a system that engages more citizens while effectively balancing constitutional right to participate in the political process with the need to defend against secretive and undue influence.

Iraq's war over oil: The administration of US Pres George W. Bush has always denied that the war in Iraq was over oil. That may be, but insurgents have clearly made oil the focus of their war, and they are winning. In their efforts, the insurgents are focusing on both sides of the Iraqi oil industry: exports and domestic supplies. Iraqi's exports were well under the 2005 target of 1.6 million -- 1.7 million b/d set by the Iraqi government. The fury of ordinary Iraqis also flares when they face difficulties in obtaining supplies of fuel for their cars -- and that in the US with enormous reserves of crude oil.