Patchwork Excuses.

"The New Hampshire economy is strong and innovative."-Gov. Maggie Hassan.

It doesn't take much looking in northern New Hampshire to see if this quote carries any real weight.

And it does not.

And I'll state it up front. Much of my assertion(s) contain speculation, personal theory and I haven't made any attempt to research fact(s) or contact anyone who has this information. Let's move on.

The Gorham paper mill is laying off 20-50 workers this is known. The reason being stated is the price of Natural Gas this has been stated by their CEO.

I don't think this even begins to hold water. Natural Gas Is A Global Widespead Tradeable Commodity. And I can't understand and don't support Gov. Hassan position on this.

For the simple reason that Natural Gas is a widely known and traded commodity, and a commodity that is well established to have characteristics that include volatility and price spikes. So, if the price of Natural Gas is that important to the manufacture of paper and protecting jobs why didn't the Gorham mill hedge their position(s) by purchasing futures contracts or options on futures contracts to literally "lock in" their price that they pay for this important commodity.

Enter New Hampshire politics.

I think this is a clear example of why Keynesian economic policy can't work. I'm confident that if the books were opened on the Gorham mill it really isn't a for profit business anymore. Instead, it's a large state loan guarantee, more loans, more grants and every asset they have including their weekly cash flow is taken by either the state or the banks (probably both) as collateral against these loans. I'd be willing to bet that the CEO in question really isn't a CEO; as a he isn't allowed to make real decisions like implementing a long-hedging strategy to protect his operation(s) from the impact of the rising and volatile price of natural gas.

This is why I think it's irresponsible for Gov. Hassan to issue press releases calling these layoffs "troubling" or how she is committed to this issue, whatever this means. If New Hampshire were truly interested in helping business thrive and create jobs they would actually back off while at the same time provide capital sources to implement effective strategies like a long-hedge in Natural Gas.

But this isn't the way Keynesian economics works. Because in Keynesian economics it is the government that makes the decisions as they know best.