What's up for your summer plans? Well, If you're Barack Obama, you shouldn't exactly be planning a long vacation. Why not? If you thought things were percolating already, you'd better sit down. As Obama, said in another recent money grab in LaLa land, "You ain't seen nothing yet." This was the trite phrase Al Gore used frequently in the 2000 Presidential campaign. Al was right, but in a way neither he nor anyone else foresaw.
The election that never ended, (in one sense, it still hasn't ended, as Democrats are still sore over losing) wracked America in ways not recently seen. There were slow-burning dramas (ah, those chads) to lighting-quick events (the tossing of the military ballots) to events we still have questions about (how many people in the Florida Panhandle didn't bother to vote because NBC called the election for Gore?) Some periods of time that span an event are simply so pregnant with so many ramifications, it takes a wise man years to digest them. This summer promises to be one of those time spans. Better hold off on those vacation plans, Mr. President.
The slow-burning dramas are probably the best place to start. The festering sore once known as the American auto industry is most salient now. As the government acknowledges, to dispose of this shell in bankruptcy will take months. Most of the dealerships, where most of the jobs reside, will be gone by next year. Obama will continue to pour money in, so the unions will get enough for their dues and a healthy Obama 2012 contribution, but the end is near. This sad story will be the news media's version of a funeral dirge played throughout the summer. Think Beethoven's Seventh.
Interest rates and their effect on the economy will be another slow-burning drama. A Reuters story today (5/31/09) was almost cute in its doe-like tone. In "Federal Reserve Puzzled by Yield Curve Steepening" by Allister Bull, the puzzlement concerned why long bond yields are rising. With the government not only printing money at a breakneck pace, but also buying its own debt, it's a wonder this hadn't started months ago.