Trump

Monbiot is right

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CM has a soft spot for George Monbiot. Almost a decade ago he wrote about the Climategate scandal which showed the corruption within climate science. Monbiot suggested along the lines, “if you cut the average climate activist in half you’d discover most had little more than a passing grade in a liberal arts degree”. He, of the left himself, was in a sense kicking his own side for continuously trying to gloss over things they don’t want to admit. Monbiot believes that winning arguments requires proper debate, not making more noise to drown out dissenting voices. So it was refreshing to read his take on the famous G-7 picture of Merkel eyeballing a recalcitrant POTUS. Monbiot wrote,

There was much rejoicing this week over the photo of Trump being harangued by the other G7 leaders. But when I saw it, I thought: “The stitch-ups engineered by people like you produce people like him.” The machinations of remote elites in forums such as the G7, the IMF and the European Central Bank, and the opaque negotiation of unpopular treaties, destroy both trust and democratic agency, fuelling the frustration that demagogues exploit…Trump was right to spike the Trans-Pacific Partnership. He is right to demand a sunset clause for Nafta. When this devious, hollow, self-interested man offers a better approximation of the people’s champion than any other leader, you know democracy is in trouble.

It is a powerful point. CM has made the argument for years that the ‘people’ are getting fed up with leaders who do little more than feather their own nests for the future. So when voters put people in power that promise to put words into action is it any wonder we have the political upheaval we do? It is amplifying and with good reason.

The Italians didn’t like it when the French and Maltese took potshots at their newly elected leaders stopping and turning around refugee boats which were election promises. The Austrians are through listening to the bullies from Brussels lambasting them for deporting radical imams and their families as well as closing militant mosques. While the EU elites may have celebrated Macron’s victory they still overlooked Le Pen managed twice the vote Front National had ever received. The Hungarians are tired of being told they must take their quota of asylum seekers even if a referendum showed 98.4% were against it. Even Merkel got a stiff uppercut from the largely socialist leanings of Germans with the catapult of the anti-EU AfD to the second largest party. It isn’t just Europe either.

Canadians are tired of being told they must comply to compelled speech laws. They gave Trudeau a precursor of their anger last week by voting in Progessive Conservative Doug Ford Jr. as Ontario Premier. He annihilated Liberal Kathy Wynne so badly her party can’t even serve in parliament. While liberals were complaining Ford won it for being a white heterosexual male they overlooked that most constituents which gave Liberals 15 years to show something were sick of being taken for mugs. They’re exhausted being told by governments how they should live their lives and tired of policies that ensure endless misery if they fail to comply.

Even liberals in America can’t shake off TDS. By way of example, in the run up to the Democratic primaries in Maryland, 46% see getting rid of Trump as the highest election priority, with the usual progressive values of slashing crime (Baltimore highest crime in US), tackling opioid abuse (3rd highest rate of addicts), climate change and affordable healthcare registering less than 11% combined.

The irony of today’s political sphere is that the very politicians that are so fearful of the next election would romp home were they to actually listen and represent their citizens rather than let the likes of a Trump force them to wake up. CM has often been criticized for supporting Trump as a beacon of righteousness. Monbiot described why better than CM ever could – he is an absolute necessary evil to wake the world up from its slumber of feckless bureaucrats who only have their own interests as priorities. Despite all of the vulgarities, the glass jaw and vanity he is spooking incumbency.

Maybe $10m p.a. talkshow host Bill Maher expresses the absolute desperation of the left. Instead of coming forward with a raft of policies that would make Trump’s look utterly at sea, the best idea is to wish shared misery on Main St via a deep recession to achieve it. With leadership and depth of policy like that, Alec Baldwin’s 2020 campaign at the very least will field the collective audiences of Robert DeNiro, Samantha Bee and Sally Field as the purveyors of the behaviours we should aspire to.

Priorities, priorities…

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Maryland (MD) – 2018

  • High school graduation rate: 87.6% (12th highest)
  • Public school spending: $13,075 per pupil (19th highest)
  • 8th grade NAEP proficiency: 34.7% (math), 37.4% (reading) (11th highest).
  • Adults with at least a bachelor’s degree: 39.3% (3rd highest)
  • Adults 25-64 with incomes at or above national median: 61.6% (2nd highest)
  • Violent crime 4.72/1000 residents (national average 4.0/1000) (9th highest)
  • Crimes per square mile 57 (national average 31.9)
  • Baltimore, MD most dangerous city (out of biggest 50) in America.
  • Opioid death rate 29.7/100,000 (3rd highest) – national average 13.3/100,000

Good to see where things are ranked among the worst, Democrats wish to put the least focus and vice versa. Rather telling. Where is the focus on healthcare and climate change? Even more telling.

Xi and Trump summit In Singapore

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On May 25th, CM wrote after the spat between Trump & Kim, “It will be China sending Kim back to the meeting table with Trump because it will ultimately be managing the protectorate after any peace is signed for its own geopolitical aims. China does NOT want US friendly forces on its border. Best keep the buffer by getting Kim to accept a lesser deal where he gets to keep his life. For a man in his early 30s he can either choose to go down fighting or see out his days with the embezzled billions and bevy of beauties in his concubine.

Shouldn’t the fact that China provided Kim Jong Un with a “private” jet to get to the summit speak volumes about who his interests represent? While the US State Dept might quibble over minibar expenses at his hotel in Singapore, President Xi is showing he’s truly behind the outcomes from North Korea’s side. The Chairman is but a puppet.

China only wants reunification if that means US Forces leave the South. That is unlikely to be on the cards so Kim can de-nuclearise and clutch to the bosom of Xi.

As CM wrote back in August 2017, China will turn North Korea into a puppet state. Kim knows it is best to hitch his wagon to the world’s most ruthless regional power in coming decades. He only needs to bear 6.5 years of Trump. President Xi will be around for decades.

Harley-Davidson needs a major overhaul

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Harley-Davidson (HOG) is the classic case of a divine franchise. While still the world’s largest maker of cruiser motorcycles, it is being swamped by new competition. HOG’s EBIT performance has slid for the last 4 years and is even below the level of 2012. BMW Motorrad, KTM AG, Ducati and Triumph are all growing unit sales and profits. HOG has a very defined product line whereas its competitors are flush with sports, adventure, cruiser, heritage, cafe racers, scooters, off road and much broader engine sizes.

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The further complication is that the Japanese are getting their act together. Honda is targeting over 20mn units in 2018 (mainly driven by emerging Asia). Honda has received rave reviews of its new CB1000R which should keep the fires burning. Several years ago, Yamaha introduced a budget cruiser called the Bolt but HOG responded with a competitively priced bike made in India which showed the desperation of a strategy where it doubted its brand power. Kawasaki has a 12 month waiting list on its Z900RS cafe racer which is a replica of the 1970s classic. Kawasaki has no interest playing in scooter markets and remains focused on its core larger bore segmentation.

Yamaha and Kawasaki have gone down the path of profitability than pure unit growth while Suzuki is the real laggard, lost in me too group think product. Honda has had a real resurgence in product which harks on its history. Honda now has 75% market share in Indonesia, 72% in Vietnam, 80% in Thailand and 82% in Brazil. Only 28% in India. Still, the market share, resale and brand power in Asia no maker will usurp them for decades. Put another way, the risks associated with dethroning Honda in Asia by a dealer channel push would be astronomically high. Yamaha has the other 10%.

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Profitability is starting to look much rosier for the Japanese too. Even Suzuki has managed to pull itself out of loss.

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Sadly for HOG, 1Q 2018 has shown even worse numbers. Global unit sales were 7.2% down on the previous year and 12% down at home.  Japan and Australia were soft. Looking at the strategy it looks like throwing spaghetti at a wall and hoping it sticks. It looks like some consultant has rattled together some funky catchphrases.

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HOG’s problems are simple. It is not listening to customers. When grandson of the founder, Willie Davidson, took over the reins after the near bankruptcy under AMF stewardship in the 1980s, the company really consulted customers and worked out they wanted more reliability and capability. It delivered. Sadly HOG is hanging on by its fingernails on brand alone today. The Polaris-owned Indian brand is coming up with excellent product lines which have all of the cachet of HOG given it was its fiercest competitor in the 1930s.

HOG’s product line up is relatively stale in terms of real innovation. While the Milwaukee 8 engine is a very good start and the Fat Bob is a proper philosophy change, the rest of the line up needs major revamp. At the moment it seems the brand is stuck in an echo chamber.

In closing Harley’s are a cult. There aren’t many brands where customers are prepared tattoo it to their bodies. In all the bikes CM has owned, the Harley had 10x the number of people wanting to ride on the back vs the rest combined. Yet it goes to show that brand only goes so far. Product still matters.

 

These results may surprise many

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We are often told by the likes of Pelosi et al that race relations in the US have never been worse than now. More narrative busting from Rasmussen,

”Voters feel young black Americans are better off under President Trump than they were under Barack Obama, the nation’s first black president. 

The latest Rasmussen Reports national telephone and online survey shows that 32% of Likely U.S. Voters believe life for young black Americans has gotten better since Trump’s election. Slightly more (36%) say life for these Americans has gotten worse, while 26% think it has stayed about the same.

But in March 2014, just 16% said life for young black Americans had gotten better since Obama’s election five-and-a-half years earlier.  By July 2016 in Obama’s final year in office, only 13% thought life was better for young blacks.

Even black voters are nearly twice as likely (28%) to say young black Americans are better off now than they were in the closing year of Obama’s presidency (15%).

Forty-seven percent (47%) of all voters, however, believe race relations are worse since Trump’s election. Still, that compares to 60% who felt that way after eight years of the Obama presidency. Just 20% say those relations are better now, while 30% rate them about the same.

Does Trump have a right to brag about unemployment?

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The Trump vs Obama camps are lighting up over who was responsible for the drop unemployment rates. Looking at the long term decline one could argue that Obama was a key part of the decline and the incremental drops in the rate are Trumps. Here are the raw figures.

In Jan 2009, according to the Bureau of Labor Statistics, Obama had 115.818m people full time employed. In December of 2012 that number was 115.791m. (-270,000). There were 8.046m and 7.943m part time jobs over the same period. Minus 103,000. At the end of his 8 years, there were 124.3m FT jobs and 5.554m PT jobs. All told his FT workforce went up 8.48mn and PT fell 2.492m. So gross employment increased 5.98m.

Trump started at 124.3mn FT and as of May 2018 there are 128.657m FT jobs and 4.948m PT jobs. So he’s increased FT 4.347m and cost PT 606k. Net increase of 3.741mn jobs. So even if you ran the narrative that Obama’s second term was enough to put the “Great Recession to bed”, Trump has achieved 63% of Obama’s employment legacy in only 30% of his first term as president.

The number of people working two or more jobs surged to over 8mn (a record) under BHO as did food stamps (doubled to c.48m before coming down to 43m by his term end). SNAP stands at 40m now. 3mn fewer.

30 million people claim disability and welfare in the US. The Social Security Administration (SSA) highlighted that back pain and musculoskeletal problems are 33.8% of claims for disabled workers, followed by mental illness at 19.2% in 2013. This compares to 8.3% and 9.6% respectively in 1961. Half of claims in the 1960s came from heart attack/stroke and ‘other’ categories which made up only 17% of the 2013 figure.

Yet the truth is that if Americans wanted more of Obama’s successful policies, Hillary was Obama 2.0. No change in policies. Sensible to keep if they wanted the status quo. Ironic that 19 out of 25 states that voted for Trump had poverty levels exceeding the national average. Which means that had the “marry the state” policies of the Obama admin resonated with the poor it would have been a coronation for Hillary. This is a perfect example as to why a hollowed out middle America want to live the American dream rather than queue up for more welfare. God Bless America?