New Year’s Day Quick Hits: The New Michigan Governor Edition

Michigan has a new Governor…

In a ceremony awash in unexpected sunshine and clear blue skies, Snyders said government is not the answer to the state’s problems. He said despite Michigan’s economic decline, its people can forge a new era of entrepreneurship and “reinvention” of the state.

He said that will require short-term sacrifice for long-term gain. He said innovation will come not just from technology but rather a state of mind.

“We need to move forward to the positive, we need to stop looking in the rear view mirror and look to the future,” Snyder said, after a 19-guns salute by artillery of the Michigan Army National Guard.

“We need to stop being divisive and be inclusive. We have spent too much time fighting among ourselves, and have become our own worst enemy,” Snyder said in his 13-minute inaugural address.

At least he didn’t mention ‘green energy.’

A great thought piece on RougBlog:

This is not to say that I believe that those two Republican stalwarts would not be more than a mite better than the typical stumblebums the Democrats put forward–I do believe they would be much better. Yet, if the tea party has meant anything to me and to others within the movement, Romney (a very good man) and Huckabee (another very good man) will do little to put the brakes on our American crisis; a crisis created by generations of do-good government bureaucrats who also thought they knew all the answers.

When it comes to selecting their next presidential candidate, Republicans must embrace a candidate whose philosophy on government and governing is different than the candidates they have been putting at the head of the ticket these last few election cycles.

Bigger Government Encourages More Poverty

I maintain my position that you are not getting your money’s worth if you believe an earmark ban is somehow reducing wasteful spending. Not. Gonna. Happen. Sorry.

How to make a TRON costume for your cat.

Be sure to read them all: The Classic Liberal top 50 posts.

The CH2.0 Useful Idiot of the Year poll winner is….

Federal Land Grab:

No matter how you look at it, they have control of a lot of real estate. Looking at it on the surface, one would think 253 million acres would be enough land to be under federal control, but the Obama administration is not satisfied with this control. It appears they are wanting to place some of these lands completely off limits for almost every kind of use.

California: Still Suck on Stupid

A great motorcycle picture of the day…

What Would The Founders Think: Are We Done With God?

Snooki Knocks Sarah Palin? Really?

This Snooki person, what the hell has she achieved?

FCBZ: Palin’s Top Ten Quotes, in no particular order…

The next emerging market?

As the poor world grows richer, we can expect more of the same: unencumbered by entrenched customs, regulations, special interests and legacy infrastructure, they’ll make the most of new technologies far faster than us laggards in the West. Why does cable TV still exist, in this BitTorrent era? Because the cable companies are like tapeworms in our economies’ guts, sucking life from their hosts as they die with agonizing slowness. Why are universal electronic health records so hard to implement? Because the multi-trillion-dollar health industry is set firmly in its antediluvian ways and has no incentive to change. But these parasites and foot-draggers are far less established in the developing world, and that’s why the future will increasingly happen there, not here.

This is true, but I would add that here in the US we have created an all-encompassing nanny state government with layers of red tape and regulations. And we add more every day.

Top 10 Most Popular Infomercial Products

Graphs: Obama vs S&P 500

If you are a frequent visitor to motorcitytimes.com you know I really like graphs. When graphs are done correctly they convey a lot of information in a clear and concise manner.

Therefore, I’m always on the lookout for a good graph to share.

I found this graph, posted at Global Macro Monitor, comparing president’s first two years in office against the S&P 500. This is a very misleading graph:

The commentary accompanying the graph says it all:

If this is Socialism, call me Comrade

No politics or partisanship here, “just the facts ma’am”. The stock market as measured by the S&P500 is up just about 50 percent since President Obama’s inauguration to today’s close. Only Eisenhowser comes close, but not even in the same zip code. A 50 percent stock move does a lot “spreading the wealth around” and Joe the Plumber’s pension is in much better shape today than it was in November 2008!

Sure, sure, there are a ton of reasons to explain the differences, but this is politics folks! A CapEX spending led economic acceleration and pick-up in hiring in 2011, which usually follows such a strong equity performance, will make the President look unbeatable same time next year, in our opinion. Stay tuned.

Sure, sure, there are a ton of reasons to explain the differences.”

This is a major understatement.

To begin with a CapEX, or capital expenditure, requires, you know, actual capital to be involved in the expenditure. Not creating the capital out of thin air. Because, as we all know, printing money creates inflation.

Inflation, and not economic growth, is what Obama and his ‘stimulus’ spending is creating.

One way to illustrate this inflation is by comparing the S&P 500 to commodity prices (actual raw goods) as a measure of economic growth. Obviously, commodity prices are not an absolute reading of inflation, since their day to day prices are subject to supply and demand. However, looking over a 12 year window, there are some interesting trends happening.

One of the most popular commodities to look at is gold prices:

The increase in gold prices has exceeded the increase in the S&P 500. Based on gold prices, Obama has lost ground on the S&P 500.

Another commodity is crude oil. During all of 2009 and ’10 oil prices have tracked the S&P 500 nearly 1:1. Based on crude oil prices, Obama has had no gain on the S&P 500.

Long term price trends in other commodities such as wheat, silver, copper as compared to the S&P 500 all illustrate, at best, anemic economic growth.

A common measure of inflation is the consumer price index (CPI).

The CPI AKA inflation has steadily increased since 2009 as well. Another indication that the recent rise in the S&P is less than impressive. If you look at MIT’s Billion Prices Project, their calculations show more inflation occurring than the CPI.

When our Global Macro Monitor cheerfully exclaims “A 50 percent stock move does a lot “spreading the wealth around” and Joe the Plumber’s pension is in much better shape today than it was in November 2008!” Remember, the value of your portfolio, in dollars, has increased.

However, those dollars will purchase a lot less today. And, if this continues, even less in the future.