The Perception Driven Recession

Watching the news last night was kind of stunning. NBC hauled out its financial reporter who basically admitted that she had no idea why the market was slipping or what might happen next. Over and over again we hear that people's fears have led them to stop buying, change their investment habits, and basically cocoon themselves. Part of the problem here lies in perception.

First of all, a significant number of Americans have no real living memory of "hard times." The last time we really endured those was during the 1970s. If you will remember, a Democratic president attempted to implement share the wealth programs that burst the budget, shredded the fabric of society, and led to economic problems that lasted until Ronald Reagan followed the ideas of Milton Friedman and led us to prosperity.

Since then the economy has done extremely well. Our standard of living has dramatically increased, even among much of the group considered poor. we talk less about the poor starving and more about the poor being unhealthily obese. Two minor hiccups aside, we have seen the most dramatic period of expansion in national history. However all economies are subject to cycles and apparently this period of prosperity is ending. But why?

For one thing, people have no context of economic difficulty. If you listened to the Bush hating media all you heard about was how hard the economy was. A period of unemployment under 6% would have been considered amazing in the Carter years, but during the presidency of George W. Bush it was the Great Depression all over again. Those that actually lived through the Depression probably laughed at such claims. Media driven perceptions made people believe that the economy was bad when it was not. we had expansion during wars, attacks on our soil, and Katrina. These shocks individually would devastate an unsound economy.

Then came real problems. The sub prime mortgage crisis, driven by Clinton era mandates, weakened the financial sector. Add to that the energy bubble (now thankfully deflating) and you get a double whammy. Still in and of themselves, these should not have wrecked the economic ship. Perception has caused near panic to take place in investing and major purchasing. This brought on the specter of a very tough recession, tougher than necessary. Certainly Bush and Congress have done a great deal to help restore confidence, but it has not been enough to offset the damage inflicted by the media.

Hard times are difficult and people will have problems for a time. The only positive that can come from this is that it will give the current generation an understanding of what economic trouble really is. We are certainly not headed for a Great Depression or even a 1970s type recession, unless Obama tries to tax us out of our problems. However we must remain confident and optimistic that in the long run we will endure and return to prosperity again.

Water Studies are money down the drain

Is this the time when the taxpayers of Mineral County collectively say, “We told you so and thanks for wasting our money?” When the County Commission announced they were going to spend taxpayer’s money on a water study of Knobley Mountain to see if there was a sufficient supply for future growth many of us wondered aloud why? If you have lived in Mineral County any length of time you know there are natural springs all over Knobley. You know there is a bottled water plant in Fountain using spring water and the city of Keyser has a dam on Limestone that they can’t empty because water from Knobley Mountain springs keep refilling it, despite their efforts.

Now the county wants to do a bigger water study and at bigger cost as well. DHHR notified the county they are making available $92,000 to assist with the study. That is just to assist, because the cost of the total study is going to be some where around a quarter million dollars.

If they spend this quarter million of your tax dollars; we already know what they are going to find. We will find that Piedmont gets its water from Savage River in Maryland, the Elk Garden area gets its water from Grant County, and Ridgeley and Wiley Ford are connected to Cumberland’s water supply for now. This means that many of the people of Mineral County don’t even rely on water from within the county. History will also show that even in the worst drought, the Keyser and New Creek water systems have never ran out of water. Also keep in mind that the Limestone Dam is a water reservoir for the city of Keyser that is no longer used and they can’t seem to empty it, because to much water flows into it.

The study will also find that Jennings Randolph Lake has 41,000 acre feet of water in storage that is enough to supply every man, woman and child with 100 gallons a day for over 13 years if the river stopped flowing to day. There is an additional 51,000 acre feet used for water quality management, so we are looking at over 27 years worth of water if it didn’t rain for the next 27 years and nobody in Mineral County uses any of that water now!

So basically the County Commission wants to spend more taxpayer money on a water study to learn what we already know; that we don’t live in the Sahara Desert and Mineral County has plenty of water resources to tap if we need. Perhaps Mineral County has so much water because the drain is plugged up from the County Commission stuffing money down it.

It is time for the County Commission to stop wasting the taxpayer’s money on water studies. If you want to spend our tax dollars on water, then we believe you should spend it on providing additional water and water safety. Connect the different water systems in the county together, so that in an emergency the separate water systems can help each other. If a chemical truck were to wreck and spill its contents into New Creek, then a connected system would allow Keyser to bring in water from Elk Garden or Piedmont. If water quality becomes and issue in Fort Ashby, then water could be supplied from Fountain or elsewhere in a connected system.

In short the County Commission should spend the taxpayer’s money wisely or not at all.

Only Al Quaida Could Have Done It

Al Quaida's number two leader Al Zawahiri did something that will help Obama considerably in this country. Shoot, it even got me thinking angry thoughts on his behalf.

Al Zawahiri attacked Barack Obama in a very personal and demeaning way. He used an Arabic term to describe Obama, Rice, and Powell as what the world media has translated as "house negroes." Do not think that the media can fool Americans. We know exactly what word they meant to say and it was not "negro."

I do not like Barack Obama as my president, but at the end of the day he will soon be President of the United States. He is an American. No terrorist is allowed to say anything like that about this country's president and secretaries of state without understanding that this nation will rise in outrage.

The problem that Al Quaida faces is that a country that they have derided as being anti-Middle East and anti-Muslim has just elected a president with ties to both cultures. It undercuts all of their propaganda. They almost have to lash out in this manner to try and regain the psychological initiative.

I'll say again, Obama's ideas are destructive to our diplomacy and our economy. However, he is an American. Any terrorist who insults him in such a fashion insults me and 300 million others. I don't think they understand how much anger that kind of statement can create, or how much it will unify Americans once again to destroy their brand of hate.

Former W.Va. Governor Cecil Underwood Dies

Our thoughts and prayers are with his family.

I Feel Better About Helping Automakers Than Banks

Call me crazy on this, but I do not feel the same anxiety about helping the Big Three that I did about the banks.

I supported the bank bailout because, well, we kind of had to. Banks are the engine of the economy and we all have a vested interest in seeing them survive. Without solid banking in the US, the world hits depression quickly. I believed it had to be done, but I did not have to like it.

The automakers are kind of a different story. Basically they followed the rules. The market wanted larger vehicles and that's what the Big Three gave them. The unions wanted strong salary and benefit deals and for the most part harmony has been maintained with them. You have to give credit to an industry that keeps good labor relations, satisfies the market, and turns a slim profit every once in awhile. Sure they do make some bad decisions, but they work on a much more slim profit margin than almost anyone else.

Fact is that this is a national security issue as well as an economic one. We need to remember that during wartime, we will need these factories to churn out tanks rather than automobiles. Of course we have seen jobs being sent to Mexico over the past decade, but perhaps we can reverse that.

Instead of a bailout, let us increase the number and call it something else. Call it a reinvestment. Instead of giving them enough to help them get by, let's set them up for the future. To stay in the United States, auto plants must completely modernize in the same fashion as the coal industry. How much will it take to get these operations into the twenty-first century while giving the UAW enough to make sure that these workers have a soft place to land, or can retrain? This would not only help automakers, but also invigorate our technology sector.

In return, for the next ten years, each American who can prove they paid taxes in 2009 should get a $200 rebate when they purchase a new vehicle from the Big Three. This would be a one time rebate. The federal government should also be able to count on very good deals from automakers providing vehicles in that same time span.

I just don't think that we can allow automakers to just go down the tubes. It doesn't make sense on a number of levels.