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6B Daily News – Wednesday, August 3, 2011 WORLD BRIEFING Debt-limit bill OK’d WASHINGTON (AP) — With scant time to spare, President Barack Obama signed legislation Tuesday to avoid an unprecedented national default that he said would have devastated the U.S. economy. But the truce with Republicans that defused the crisis seemed to be fading already. Wall Street crumpled, dismayed by reports of new economic weakness and unimpressed by Con- gress’ prescription. The Dow Jones industrial average sank by 266 points, its eighth straight losing session, and biggest. The compromise deal to persuade GOP law- makers to raise the federal debt limit — U.S. borrow- ing was to collide with it at midnight — will cut federal spending by $2.1 trillion or more over the next decade. But Obama immediately challenged Republicans to accept higher taxes on the wealthy in a second round of deficit cuts this fall. They adamantly refused to accept that idea during the past months’ dispute. A stern-faced Obama said at the White House that action to raise the debt limit had been essen- tial but more — and dif- ferent — steps were badly needed. ‘‘We’ve got to do everything in our power to grow this economy and put America back to Fundraiser 100% of entry fees to benefit the DESTINATION SWAP MEET TEHAMA TEHAMA COUNTY BRANDING PROJECT Sat., Aug. 6, 2011 8am-2pm Tehama District Fairgrounds 650 Antelope Blvd., Red Bluff Take advantage of this opportunity to raise funds for your School, Charity, Organization, or extra cash for you!!! Categories: Plants, Agriculture, baked goods, crafts, stuff, etc... Booth registration fee: $30 Spaces are Limited! Register early! Register at: • Business Connections 332 Pine Street, Red Bluff •Tehama District Fairgrounds Office 650 Antelope Blvd., Red Bluff •Chamber of Commerce 100 Main Street, Red Bluff Published as part of a project co-sponsorship with D NEWSAILY RED BLUFF TEHAMACOUNTY work,’’ the president said, arguing forcefully for including revenue increases as well as spending cuts in the next round of efforts to trim huge government deficits. Dow falls 265 WASHINGTON (AP) — The stock market is on its longest losing streak since the financial melt- down of 2008, confronted almost every day by fresh evidence that the econo- my is in serious trouble again. The Dow Jones indus- trials declined more than 265 points Wednesday, their worst day in more than two months, and closed below 12,000 for the first time since June 24. Investors sold all day after a report that the economy, which is barely growing and straining to produce jobs, is getting almost no help from con- sumer spending. Ameri- cans saved more in June and spent less for the first time in almost two years. The big declines in the stock market came despite the formal end of weeks of uncertainty over whether Congress would raise the federal govern- ment’s borrowing limit. President Barack Obama signed into a law a incomes grow by the smallest amount in nine months. The latest data offered a troubling sign for an economy that is adding few jobs and bare- ly growing. Consumer spending dropped 0.2 percent in June, the Commerce Department said Tuesday. It was the first decline since September 2009. Some of the decline was the result of food and energy prices moderating after sharp increases earli- er this year. When exclud- ing spending on those items, consumer spending was flat. Still, consumers also cut back on big-ticket items, such as cars and appliances, which help drive growth. Incomes rose 0.1 per- cent, the smallest gain since September. Many people are also pocketing more of their paychecks. The personal savings rate rose to 5.4 percent of after-tax incomes, the highest level since August 2010. bill that raises the debt ceiling and promises more than $2 trillion in cuts to government spend- ing over the next decade. The bill was passed by the House on Monday and by the Senate earlier Tues- day, 74-26. Americans cut spending WASHINGTON (AP) — Americans cut their spending in June for the first time in nearly two years after seeing their Stocks retreat, with S&P down 2.6 percent NEW YORK (AP) — A sell-off erased this year’s gains in the stock market Tuesday as investors grew increasing- ly concerned about the economy. The Standard & Poor’s 500 — the benchmark for most U.S. mutual funds — lost 2.6 percent and fell to its lowest point of the year. It is down 0.3 percent for the year and is off nearly 8 percent since reaching a high for the year of 1,363 on April 29. A series of weak eco- nomic reports and poor earnings reports from sev- eral big companies spurred the decline. The Commerce Department reported that consumers cut their spending in June for the first time in nearly two years. Analysts had pre- dicted a slight increase. Incomes also rose by the smallest amount since September, reflecting a weak job market. The report came one day after a weak manufac- turing report. And on Fri- day the government said that in the first half of the year, the economy grew at its slowest pace since the recession ended in June 2009.