Stimulating News

Over the last couple of days there's been some interesting cometary from Washington politicians regarding the stimulus package, it's effects so far and the plans for its future. Like many of you, I've been keeping track of some of the goings on, and I've found the latest statements to be noteworthy.

On Sunday, President Obama took an unusual step by placing an op ed in The Washington Post. He's on the defensive, after being criticized by conservatives for taking too much tax money, taking too much time to get the stimulus program (a.k.a. “The American Recovery and Reinvestment Act”) under way and that the program, which was meant to “stop the bleeding,” simply isn't working. All of this seems to be true, especially when you consider the “metric” the administration is using as their point of reference.

I need to point out that it's pretty tough to have a consistent baseline (metric) of how well you're performing when your point of reference is constantly shifting. At one time in my life, I wished for teachers who would teach the way the Obama administration is administering.

But apparent present-day failures, massive historical lessons showing the same kinds of failures, shifting baselines, constant criticism and an otherwise lack of economic response (unemployment was up again in June) haven't changed the minds of the politicians who can't seem to see what's blatantly obvious to the rest of us. The bleeding hasn't stopped.

But let it not be said that politicians can't take advantage of a perfectly good tragedy. What would you and I do if confronted by massive debt, an uncertain job future and the threat of inflation? Well, we would spend twice as much – clearly. In what sounds like the next step in the performance of The American Recovery and Reinvestment Act, Vice President Joe Biden, who's lately become somewhat of a motormouth, stated that the administration “misread” the economy, leading to new and widespread speculation about the idea of a “...Reinvestment Act” part deux.

If part one has cost us 787 billion official dollars, trillions in printed reserves, a government controlling interest in the automotive and financial sectors and a plunging value for the dollar worldwide, among other things, we can only speculate how much the next installment in this program will distort the American economy. My guess is a new belief in something that I've resisted for several years now – hyper-inflation. I'm remembering my post “Mark's Top 30 Watch List For Economic Armageddon.” Unfortunately, there are only two steps left to take on that list, and Murphy's Law dictates that they're well on their way.

We can only hope and pray that I'm wrong. Even I hope I'm wrong. But one thing is certain, the stimulus package has become the 800 pound gorilla in the room. It's massive, and impossible to ignore or avoid, no matter where you're standing.

So the news over the last several days has been interesting. Our leadership is providing us with little glimpses of insight into how they feel about the status of their economic policies, and where those policies might be headed. Unfortunately, it appears as though the worst of the storm is still directly ahead of us.