Happy Days Are Here Again?

George Rebane

Nah, it’s just that November’s mid-term elections are finally getting close.  The big news hereabouts is that Nevada County received another tranche of federal cash from the vaunted American Redistribution and Re-election Act (ARRA).  Yes indeed, another $2.82 million and change rolled in this week.  This almost tripled our take so far.  We also applied for more monies from that trough (why shouldn’t we?), and were advised that we’re good for about another $6.5 million.  Please see the weekly chart and visit the county’s website for more info.

 

As predicted in these pages for over a year now, this cash has been set aside for exactly such a rainy day as the Dems are anticipating this November.  I expect a good portion of the approved monies to come in between now and election day, and the only stimulus it will provide is to stimulate you to vote for more tax and spend policies and politicians – ‘see we told you we’d get the Chinese to give, er lend you the money.’

Now before we go nuts and get drunk celebrating this weekend, we should put this little injection into perspective with some other economic data that came out recently.  Like start with today’s announcement that the country’s 2010Q2 GDP growth was not really 2.4% - itself anemic – but an even more sober 1.6%.  Unemployment in the private sector is flat, the only ones really adding jobs are government bureaus so that they can better tax and monitor us.  And, of course, we heard this week that after all this stimulus our county's unemployment went up.  Our trade deficits are going through the roof, and public service unions continue their compensation demands which have reached levels of mega-insanity (more on this in a later post).

Speaking of mega-insanity, here in California we’re hell bent on driving our economy into deep mud and take undisputed possession of last place in the Union.  But our socialist neighbors have it all figured out.  Turn the crank up on AB32’s cap and tax carbon provisions, and we can replicate Spain’s experience in creating subsidized ‘green jobs’ at the horrendous cost of destroying wealth creating jobs.  The dufus divisions in the state continue pointing to Sand Hill Rd venture capitalists investing in such projects as proof that everything is going to be OK.  They have not a clue as to how those people look at their investment risk in government mangled markets.  Anyone remember the great ride we had with Fannie and Freddie before the plug got pulled.

Exit question: Any bets that after 2011 the Great Recession will be renamed?

Comments

[D. King]

"I expect a good portion of the approved monies to come in between now and election day,"

"...American Redistribution and Re-election Act (ARRA)."

Yes George, but the Iceman cometh!

http://www.politico.com/news/stories/0810/41506.html

[Dixon Cruickshank]

Its the free ice cream for all play but it has worked so why not

[RL Crabb]

Owing to the turtle-like speed of government, the Stimuli may have arrived too late to impress the voting public. They really believed they would shave three or four points off the unemployment roles by this time and it hasn't happened. The leaves won't be the only thing falling come November.

[Kim Pruett]

Bob, I think you are correct in your response, turtle-like speed is a very appropriate description of how things work, I am finding out the hard way unfortunately. November will be very interesting.....