Just when you thought he was rich enough, burnt out enough from his last gig, and cynical enough from his recent stint in politics, Schwarzenegger is back! To the chagrin of his detractors and joy of his fans, The Hollywood Reporter notes that he will be “…returning to showbiz as a cartoon and comic-book character named The Governator…” (check out the graphic).
Due to the press release coming into the end of last week, many may have thought this just a good April Fool’s Day giggle. But evidently this is a serious collaboration with comic book legend Stan Lee on an animated TV series and comic book. It will mix the real life of the actor/politician with the superhuman exploits of his movie roles.
We are certain there is at least one party that will be glad to see him stick around: Tonight Show host Jay Leno. He was the one who originally parodied Schwarzenegger’s run for governor of California when he dubbed him with the name from which the new effort is derived: the “Gubernator” (Goo’-burr-nay-tore… pronounced slowly with a Teutonic accent.) Just last night Leno quipped that in approaching the young minds of the comic book set Schwarzenegger had a real chance to finally destroy his ultimate arch-enemy: the English language.
That may seem a world away from capital markets. Yet it should not be lost on anyone that Schwarzenegger’s successor, the almost ridiculously resilient Jerry Brown (a.k.a. Governor Moonbeam from back in his ultraliberal days), is having no better time getting a budget passed in California than his predecessor. Brown announced last week that he was ending budget negotiations with Republicans, saying their demands were too much and came too late in the process. Democratic California Senate President Pro Tem Darrell Steinberg admonished the minority party during a recent floor debate over the budget, saying, “I would urge you to recognize that, in order to get this done … that you acknowledge that elections matter.”
Without being at all partisan about it, while the electoral balance is much different at the federal level, maybe someone should send a note along to Harry Reid and the US Senate Democrats on the need to meet the Republicans more than halfway in deference to the overall Congressional percentage representation of each party.
Beyond the California state and regional considerations which would feel the immediate impact of failure to secure a state budget agreement, there is a broader lesson that might be a goodly part of the consideration driving US dollar weakness. It seems that whether at the state or national level, US politicians are exercising their own sense of entitlement: that they still have the luxury of the time to play these stupid partisan tricks and games. Each side’s ‘heroes’ portray themselves as champions. The Left will save chidren and old people from starvation, while the Right will rescue future generations from debt enslavement to our creditors. Rohr suggestion: Get Over Your Measly Selves.
In being less than effective in addressing the huge fiscal problems facing the states and the country, they are the collective equivalent of Nero fiddling while Rome burns. All of which gets right back to our current position that the euro’s sustained rally against the US dollar is less an indication of its attractions in the midst of significant Euro-zone disarray than the degree to which the US dollar is going to continue its slide due to the incompetence over our side of the pond.
Of course, that also informs our view of why long-dated government bonds are not a good intermediate-term bet, and Gold continues to rise with only minor interruptions. For those who doubted that we are back in 1970s-style markets, it is important to note that the psychology back then revolved as much around the ineffectiveness of governmental action as any of the raw inflation pressures. We will have more for you on that very soon.
Thanks for your interest.