what happened to the balance of powers?

This is an interesting article on the fact that since he's been in office, George Bush has signed "signing statements" in violation of over 750 laws, claiming that his executive power gives him the right to set aside any statute passed by Congress when it conflicts with his interpretation of the Constitution. What this means is that we are witnessing an expansion of the executive branch's power that has not happened since the New Deal era. Another article on the topic can be found here, and the Wikipedia entry on signing statements can be found here.