I watched the State of the Union address and thought it was flat; in spite of polite interruptions, there wasn't any passion. Sure, President Obama tried to muster up emotion and that typical crescendo, but even for stuff he really believes in I found it wanting. Of course media types from all stripes called it great and magnetic, but it was like Michael Jordan scoring 23 points in his prime when scoring anything under 33 points would have been considered an off night. If Jordan's team won then his performance could be overlooked. I think America lost last night, and it remains to be seen of Mr. Obama won; we'll know in November. By the way did anyone catch what is the state of the union or is it just a rhetoric title these days?

Overnight there were other things happening that serve as real life examples on what works and what doesn't work.

Apple blew them away again. I remember ridiculing the iPhone 4S as a half-baked excuse for not having the iPhone 5 ready, but it's proven to be one of the most popular devices in the history of mankind. In all, the company's revenues soared 74% to $46.3 billion, beating consensus of $38.76 billion while profits clocked in at $13.1 billion crushing the consensus estimate of $10.07 billion. The stats are simply mindboggling.

iPad sales up 111% to 15.43 million - consensus estimate 13.2 million
iPhones up 128% to 37.04 million - consensus estimate 30.2 million (some thought 34m+)
Mac sold 5.2 million - consensus estimate 5.0 million

Apple's gross margin surged to 44.7%, well above estimates that ranged from 38% to 42% as the average selling price of the iPhone was $660.0. Apple now sells in 90 countries through 110,000 locations as international sales made up 58% of total company revenue. Apple is sitting on more than $97.0 billion of cash. This company is the poster child for American innovation and how a great idea can become a great ... maybe the greatest, company. The company is entering new markets while we have pushed off easy trade deals for years and have flimsy commerce arrangements with the rest of the world. Apple hires people around the world based on economics and skill, and we are now going to punish companies that follow that path.

Apple is a cautious steward of money while America is now $16.2 trillion in debt. There are so many lessons we can learn from Apple as a successful business, yet the administration is pushing policies that are the exact opposite. We need to embrace greatness as a nation and stop with this whining about income inequality. The game plan of artificially lowering income for skilled workers to artificially increase income of unskilled workers promotes mediocrity. I heard nothing last night about striving for true greatness.
As for the notion that we are all soldiers and must have each other's back, I work until 10 PM most nights. If 99% of the population has already been home, knocked back a couple and voted for their favorite on American Idol then I'm in that foxhole alone. Let's be real, we are connected as citizens and the best thing we could do is be our best selves and allow others to do the same. The SOTU was flat but still made me sick. Lots of promises made, lots of threats made, lots of expenses proposed and lots of nonsense in general. It's a good thing Apple reported before the SOTU; it was a reminder of America's greatness and the perfect example of resolve for continued greatness.

Apple v Administration

Today Apple becomes the most valuable company on the planet based on market capitalization. But the company would have never become without investment capital that is now under attack in this country. If you think taxing investment income at 30% will increase investments you're not being logical.

If Obama's plan had been in place a few decades ago, some of today's great American businesses wouldn't be a reality today.

Last night I interviewed Jim Clifton, CEO of Gallup and author of "The Coming Jobs War." He made the excellent point that we must promote entrepreneurship even more than the notion of innovation in this country. Just think, without Gates, Jobs, Grove, Whitman, Zuckerberg, Brin and Page there would be none of the magic from Microsoft, Apple, Intel, E-Bay, Facebook and Google. There is something special about entrepreneurs that should be coaxed, nurtured, and encouraged. If we are to believe the rhetoric of the SOTU and this campaign season, government can replace entrepreneurs and incubate the next great American business. It can't.

Sun Setting on Japan

While I've had this epiphany that the administration's economic plans are based on fascist economic policies (Mussolini gave speeches that were not unlike last night's SOTU), we are also mirroring the demise of Japan as a great world economic super power. The land of the rising sun posted its first annual trade deficit since 1980 as exports in December dropped 8% from a year earlier while imports climbed 8.1%. The nation held to a plan of bailing out failed businesses, massive debt and money printing and is now a slave to a cheap currency. Making matters worse, the kids, particularly young adult males, just don't have the heart anymore to be great.

There are so many examples of how to dismantle greatness and many begin with somehow leveling playing fields and attacking successful portions of a society.

Apple hires the best and the brightest, and they pay them very well. It is money earned for success that is the envy of the world. America earned its greatness but now could destroy it because of envy and greed for power in the Executive branch.

Outside of Apple and its long coattails the market is opening under pressure in part to disappointment in Boeing and other mega-companies that have posted results. This looks to be another tug-of-war session but there is more pressure to cash out some chips so we aren't going to force the issue this morning.

Comments

Great post on the SOTU and I completely agree. I would be interested in hearing your thoughts on how long Japan can last without a default and the hyper inflation to follow. Or if there is a way out for them what is it and when will they do it? James Tharin on 1/25/2012 9:35:55 AM

Was there a State of the Union Address Last night?? All blow and no show. He has not a clue what damage he has done....and still he smiles. Jeff on 1/25/2012 9:39:21 AM

SAME OLD PERSON WHO LIES AND WOULD CHEAT HIS MOTHER - NOT TRUSTWORTHY - SOCIALISTIC- WANTS USA TO BE A DEPENDECY NATION CONTROLLED BY SOCIALISTS ROBERT BOYETT on 1/25/2012 9:54:26 AM

I feel a sense of despair knowing that his terrible policies will continue throughout the rest of this year. Lylah Saunier on 1/25/2012 9:56:31 AM

I was disappointed, but not surprised. He could have taken the opportunity to offer something really meaningful to address our serious challenges. Instead he just pandered to his fans the way he always does. Paul on 1/25/2012 10:02:21 AM

It was nothing more than a campaign speech, and not a good one at that ! The man lies and we're in real trouble if he's re-elected ! Peter on 1/25/2012 10:09:59 AM

Just an empty suit on television, would rather have watched my favorite tv shows. Alot of hype and rah rah... Like you I am in the office by 7:00am and out by 9:00pm most nights...People only see what they want, cars, houses, clothes etc..NOT the HARD WORK or SLEEPLESS NIGHTS.... I'm in the fox hole with you and believe it or not I do believe there are alot of us... Like the names you mentioned they weren't home by 6pm throwing back a few. But like you and them I am very proud of what I built and I am not going to give it away. MICHAEL XIRINACHS on 1/25/2012 10:17:03 AM

same old same old! virginia hoffman on 1/25/2012 10:20:35 AM

I am angry. The problem with this president (and his administration) is NOT that he doesn't know what he is doing, it's he doesn't know, he doesn't know! And probably never will. George on 1/25/2012 10:45:48 AM

I was also ready to hear great and stirring commentary on what to do next to pick ourselves as a nation, up by the bootstrap, and I wasn't really moved. I wanted to hear some revelation, some bright minds working on that, some thinking outside the box with a not so subtle growl. I guess government is just too big, way too many little minds keeping each other alive and wealthy. What a shame someone like yourself can't speak with a loud enough voice to be really heard. We have to keep trying to make a difference. This is OUR country. The ancient Chinese model for good government stipulated that ALL hopeful politicians must pass rigid exams in philosophy focused on Confucian character, qualities of moral being, statesmanship,leadership of people for their own good,a believe in social justice, and connoisseurship in arts and letters. How many in Congress could pass such exams? Maybe we need to start over... Cheers, M. Dailey Merlin Dailey on 1/25/2012 10:48:41 AM

I heard more regulations, more power to the EPA, more taxes and spread the wealth. Nothing to give confidence to the Street. And his ridiculous pro-energy as he refuses the pipeline building. Teddi Locke on 1/25/2012 10:49:13 AM

I don't know why anyone would have expected anything different in this speech. After 3 years of doing the same thing and expecting different results, I think we can finally accept that he must be insane. He expects new and better results this year by doing more of the same. Scott Heck on 1/25/2012 11:35:19 AM

After the SOTUS I felt like if I had taken a strong laxative. The lies, the sophistry, the class warfaer appeals- it is disgusting. It was the SOS. juan vega sr on 1/25/2012 11:35:41 AM

SOTU sounded like a lecture. I think the Pres needs to go back to school and learn sound economics, real history and memorization. If he turned his head side-to-side one more time his head is going to fall off. Norma Varela on 1/25/2012 11:56:50 AM

anti-capitalism, anti-free enterprise, anti prosperity GC on 1/25/2012 11:58:37 AM

I have never in my life been exposed to a president as hard headed as he. If he's re-elected, we are doomed as a nation. Paul on 1/25/2012 11:59:15 AM

When he started STOTU I thought 'Hey! Not so bad, sounds better than that scary creepy fat disgraceful slob Gingrich, maybe we should just keep what we have' but then...HE JUST KEPT ON FREAKIN' TALKING and I woke up -c Carolann on 1/25/2012 12:27:53 PM

FLAT OUT MAD! Saw Mrs.Steve Job's face and it looked to me like she'd rather have been anywhere else. "O" isn't even a compelling speaker anymore. The tax issue is a farce, a shellgame, and the divisiveness and debt this man has brought about will bring this nation to ruin if we continue to tolerate him. Marie C on 1/25/2012 12:57:27 PM

ground hog day, it was a repeat of the past, same speeches more class ware fare to seperate the country. more interesting listening today then last night David mays on 1/25/2012 3:14:05 PM

The SOTU was just another set of false promises and lies to create hope for the poor fools who put Obama into office. Your Street Market Commetary is point on and the end for the US dollar is very close at hand. At this time there is no alternative currancy that golbal folks trust - BUT Obama is distroying the last of the world's trust in America so the violent changes will be soon. Conservative Analyst on 1/25/2012 5:27:27 PM

President Obama is an unprincipled politician saying things he doesn't believe in and/or won't do to garner lost support and pandering to the ever growing portion of our society that feeds/survives off of government subsidies and handouts. A horrible betrayal of our nation's founding principles. It makes me sick to see what is happening to our value system because I don't think it can be stopped at this point. Bill Bahlburg on 1/25/2012 6:12:02 PM

We are headed down the wrong path. I feel there are poeple that actually believe Obama has done good things, and will vote for him Bob Medkeff on 1/25/2012 7:28:12 PM

Just more of the same class warfare. It reminded me again how almost 1/2 of the country pays no income tax. That is scary because they vote. John Muir on 1/25/2012 9:01:45 PM

Same talk that he hasn't walk. Ben Lavitt on 1/25/2012 9:26:38 PM

One word: "bull---t". One sentence: More crap from a failure or a leader. One more thought: The government is incapable of creating jobs,and a total failure when it comes to running a business operation; think U.S. Postal Service. Their "investment" acumen is defined by Solyndra. I believe that the motives of this administration are are anti freedom and anti free enterprise. Thanks Tim Abbott Tim Abbott on 1/26/2012 12:26:20 AM

One more comment if you will Charles.His vision offered only ideas that increase the size of government through more government involvement and taxation. The man is either hell bent on destroying our country or he is a complete idiot; think Europe. Tim Abbott on 1/26/2012 12:37:14 AM

The SOTU was a sickening tirade that promoted mediocrity and punishment for success.Dr. Adrian Rogers said it very clearly. You cannot legislate the poor into freedom by legislating the wealthy out of freedom"...Please look him up. Tim Abbott on 1/26/2012 12:54:16 AM

I stopped watching after about 30 minutes, my stomach couldn't handle any more promises that he would do something by executive order, which to me was code for "these folks here in Congress won't do it the way I am telling them to do it, and since I know more than they do, I refuse to negotiate with them, so I am just going to go ahead and assume that it is OK to do it without them" The amazing thing to me is that his party hasn't revolted; perhaps three straight 9-0 rebukes by the Supreme Court within three weeks will start to wake some people up. Perhaps a slap down on some of the "non-recess" appointments would help. I am amongst many who agree we have problems to fix but who also believe that it takes collaboration to get them fixed, not a top down, "I know it all" approach. This President, and any who follow him, must go back and read the Constitution and pass a test on separation of powers. Lee Doble on 1/26/2012 7:40:29 AM

i already did tim abbott on 1/26/2012 5:20:27 PM

Just an arrogant person with no substance.I am surprised, so many Americans are being fooled by his "eloquent speeches".There were others in history, only 70 years ago, who fascinaated the masses.Maybe some should read(if they are able to) the article by Dr. Hunt "ANATOMY OF A FAILED PRESIDENCY"(O3-2010). Christa Willmann on 1/27/2012 10:02:30 PM

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