The U.S. has lost its spot atop a ranking of the world's most "competitive" economies. Why? In part, our deficit is too high. The US trade deficit is expected to top last year's record level of $717bn (£378bn; 565bn euros) in 2006, while the budget shortfall, although expected to be significantly lower than last year, is still forecast to be close to $300bn. "US competitiveness is threatened by large macroeconomic imbalances, particularly rising levels of public indebtedness associated with repeated fiscal deficits," the report said.

To follow up on H. Res. 1000, the new House earmarks rule, two points of clarification (courtesy of congressional sources):

• When will it apply, in the first instance? In the case of appropriations bills already passed by the House, H. Res. 1000 will apply only to items “air-dropped” in conference. Appropriations bills not yet passed will need to list all earmarks/sponsors in committee reports and conference reports.

As Congress nears its target adjournment date of Sept. 29, the odds of its passing more than a small handful of the outstanding FY 2007 spending bills are lengthening. Congressional procrastination means that passage of a continuing budget resolution will be necessary to keep the government operating when the 2007 fiscal year begins on Oct. 1, followed by a (probably lame-duck) omnibus spending package comprising appropriations bills uncompleted before the end of the year. These conference reports and omnibus packages are notorious vehicles for feather-bedding earmarks.