ABOUT THAT RECOVERY – AT 8:55 A.M. ET:  The economy took an unexpected blow this morning, reminding us that presidential speeches and sound economic policy are two very different things.  From CNBC:

New claims for unemployment benefits unexpectedly rose last week, bouncing back above the key 400,000 level, while core producer prices clumbed faster than expected in March, government reports showed on Thursday.

Initial claims for state unemployment benefits rose 27,000 to a seasonally adjusted 412,000, the Labor Department said.

Economists polled by Reuters had forecast claims slipping to 380,000.

The prior weeks figure was revised up to 385,000 from the previously reported 382,000.

The four-week moving average of unemployment claims—a better measure of underlying trends—climbed 5,500 to 395,750.

COMMENT:  And inflation is up, something any of us can plainly see every time we want, as Jack Benny used to say, to try a gallon.  Gasoline prices in our area are now over four dollars for regular, heading for five, according to many observers.  It is hard even for Obama to blame this on BUSH (!!), or even CHENEY (!!!!!). 

The president's intent to cut defense spending will be another blow to the economy, as defense procurement translates into jobs. 

It is hard to see what Mr. Obama can point to as we now enter a vigorous election cycle, with Republican candidates making their intentions known.  But the president still can count on his campaign skills, and the fact that his base, although possibly smaller than in 2008, retains a certain charming fanaticism, reminiscent of the kamikaze.

April 14, 2011