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Caterpillar CEO On Obama’s Econ Board

You probably heard the report of this endorsement of the ‘stimulus’ bill from the Associated Press yesterday:

President Barack Obama and Virginia Gov. Tim Kaine visit the construction site of the Fairfax County Parkway connector in Springfield, Va., Wednesday, Feb. 11, 2009.

Obama: Caterpillar will rehire if stimulus passes  

Feb 11

WASHINGTON (AP) – President Barack Obama says Caterpillar’s chief executive has told him the company will rehire some laid-off workers if the stimulus bill passes.

The heavy equipment maker announced more than 22,000 job cuts last month as it scales back production amid the economic slowdown.

During a visit to a transportation construction site just outside Washington in Springfield, Va., on Wednesday, Obama urged Congress to pass the bill.

The House and Senate are working out differences between competing versions of the legislation.

Obama said Caterpillar’s CEO has told him that if the stimulus bill passes he would be able to rehire some of those employees.

Obama is to speak with some of those workers on Thursday when he visits a Caterpillar manufacturing plant in Peoria, Ill.

Well, it turns out that there are a couple of minor details that the AP somehow neglected to mention.

First, there is this nugget buried in an article from Broadcasting & Cable:

Immelt Named To Obama’s New Economic Advisory Board

GE CEO to join independent group that will advise president on programs to jump-start economy

By John Eggerton — Broadcasting & Cable, 2/6/2009

President Barack Obama has named Jeffrey Immelt, CEO of NBC Universal parent GE, to his new economic advisory board.

The new board is modeled on the foreign intelligence advisory board created under President Dwight Eisenhower, according to the White House, and will "provide an independent voice on economic issues and will be charged with offering independent advice to the President as he formulates and implements his plans for economic recovery."

The board, which will meet regularly to advise the president on programs to "jump-start" the economy and how those programs are working, features a mix of executives from various industries, academics, a representative of the AFL-CIO, and others…

The new board is different from the president’s transition economic advisory board, on which former Time Warner CEO Dick Parsons and Google chief Eric Schmidt served. Neither are on the new board.

Joining Immelt on the new board, which is chaired by former Fed Reserve Chairman Paul Volcker, are:

William H. Donaldson, Chairman, SEC (2003-2005); Roger W. Ferguson, Jr., President & CEO, TIAA-CREF; Robert Wolf, Chairman & CEO, UBS Group Americas; David F. Swensen, CIO, Yale University; Mark T. Gallogly, Founder & Managing Partner, Centerbridge Partners L.P.; Penny Pritzker, Chairman & Founder, Pritzker Realty Group; John Doerr, Partner, Kleiner, Perkins, Caufield & Byers; Jim Owens, Chairman and CEO, Caterpillar Inc.;Monica C. Lozano, Publisher & Chief Executive Officer, La Opinion; Charles E. Phillips, Jr., President, Oracle Corporation; Anna Burger, Chair, Change to Win; Richard L. Trumka, Secretary-Treasurer, AFL-CIO; Laura D’Andrea Tyson, Dean, Haas School of Business at the University of California at Berkeley; Martin Feldstein, George F. Baker Professor of Economics, Harvard University.

Not only that, but Caterpillar may have an immediate reason to try to get on the good side of the new administration.

For buried in this article from back pages of the Washington Post we find:

Bailed-Out Firms Have Tax Havens, GAO Finds

By Carol D. Leonnig
Saturday, January 17, 2009; D01

Most of America’s largest publicly traded corporations — including several that are receiving billions of dollars from U.S. taxpayers to finance their recovery — have set up offshore operations that could help them avoid paying U.S. taxes on their profits, a government study released yesterday found.

American International Group, Bank of America, Citigroup and Morgan Stanley are among the companies that are getting bailed out by U.S. taxpayers while having subsidiaries in locations where they can avoid paying U.S. taxes, according to the Government Accountability Office.

Of the 100 largest public companies, 83 do business in tax-haven hotspots like the Cayman Islands, Bermuda and the British Virgin Islands, where they can move their income into tax-free accounts…

Several of the companies are household names, including Pepsi, Exxon, Dell and Dow Chemical. In the list of 100 companies that GAO studied were 63 with major federal contracts, including Caterpillar, BearingPoint, Boeing, Merck & Co. and Kraft Foods.

Legislators gave particular attention to the 14 companies on the list that received bailout money from the Treasury in the recent financial meltdown. Sens. Byron L. Dorgan (D-N.D.) and Carl M. Levin (D.-Mich.) requested the GAO study as a launching pad for their effort to curtail what they call "tax-dodgers." …

Obama pledged during his campaign to shut down the ability of U.S. corporations to avoid paying taxes by shipping their income to offshore havens. As a senator in 2007, he joined Levin in proposing similar legislation to curb abuse of offshore tax operations and force companies to be more transparent about their overseas operations in those jurisdictions

"Pepsi has 70 tax-haven subsidiaries, while Coca Cola has eight," Levin said. "Morgan Stanley has 273, while Fannie Mae has zero, and Caterpillar has 49, while Deere has three.” …

So, as is often the case, there is much more to the story than meets the eye.

But for some reason the Associated Press didn’t think its readers needed to know such pesky details.

(Thanks to BigBad for the heads up.)

This article was posted by Steve on Thursday, February 12th, 2009. Comments are currently closed.

14 Responses to “Caterpillar CEO On Obama’s Econ Board”

  1. proreason says:

    Every word that comes out of The Moron’s mouth is a lie of commission or omission.

    Like Bubba, he has lied so long that he couldn’t tell the truth if he was waterboarded

  2. Trogdor says:

    Great work SG. The new 750 Biiillliiion spendulus bill only has 50 Billion for infrastructure, how in the world is Caterpillar going to survive?

  3. BigBad says:

    Take a look at Immelt’s salary and what he has done to GE.

    20 million a year and the stock has gone from $40 to $11 since Jack Welch left.

    Did Obama scorn him for bad CEO practices?

    • U NO HOO says:

      “the stock has gone from $40 to $11 since Jack Welch left”

      Yeah, but Keeth Olbermess said Murdoch’s stock has plummeted farther. Nyeah, nyeah, nyeah nyeah…

      The recession is a self fulfilling prophecy. My neightbor works as a mechanic for a school bus transportation company. The company assigned 5 more buses per mechanic so now my neighbor and his brother-in-law are laid off. Same number or more of school students but the company cut back, I conclude, to stay ahead of the coming hard times.

      Obama, please, shut up.

    • Trogdor says:

      Arguments I’ve seen in their favor are like this: “Well, if I hadn’t been there, the stock would be down to $5 per share”…sheesh. Can’t argue with liberals and lawyers, they just make up their own reality on the fly.

    • proreason says:

      Interesting lie by Uberdumkoff.

      – GE is down 72% (as of yesterday) since Welch retired in Apr, 2000.
      – S&P 500 is down 43%
      – Murdoch’s NWSA is down 63%
      – Disney is down 53%
      – Time Warner is down 82%

      So, Uberdumkoff is specificallly wrong in his comparison of Murdoch to GE. Murdoch performed 9% better since Welch retired.

      But, the valid comparison is to the peer group, which is why I included the other items.

      As a conglomerate, GE’s peer group is the S&P 500. GE performed 39% WORSE than it’s peer group.

      Disney and Time Warner are the only large media companies besides Murdoch NSWA that have existed in the same period. On average, they are down 67% vs 63% for Murdoch. Therefore, Murdoch has performed 4% BETTER than it’s peer group.

      one more example showing that not a word that comes out of a liberal’s mouth is the truth

  4. EvaTheFrisbeeDog says:

    This board is nothing more than Obama’s favored list. In China there’s a similar list, which is filled with relatives of Red Army generals and high ranking government officials.

    Of course you wouldn’t want to be on the other list, the one that’s kept in the top drawer of Rahm Emanuel’s desk.

  5. Gladius et Scutum says:

    I see that Penny “Bad Penny Sue” Pritzker is back, after withdrawing her bid for Commerce Secretary, when her failed Superior Bank became well known. Never-the-less, she has an excellent business model. First: Inherit a billion dollars…

    I also happen to know that, twenty years ago anyway, Caterpillar had a fleet of evil corporate jets. I bet a lot of people on that “destroy the economy” board do.

  6. catie says:

    Well, what a surprise. If it wasn’t so sad and scary it would be funny.

  7. proreason says:

    It’s easy to understand why businessmen grovel before our criminal government. Fish also flee when the great white shark comes to feed.

    But it’s frightening to see the institutions that have made our country wealthy beyond imagination willingly acquiesce to a corrupt institution bent on destroying both them and the country.

  8. OK.. and GE owns NBC, GE Capital, GE ECOmaginations.. GE Capital benefits from Bailout, Ecomaginations from a “green” economy, and NBC does all it can to promote those who take from us..

    And we didn’t see this coming when NBC turned the peacock green?

  9. proreason says:

    Comedy gold. Catepillar CEO flatly contradicts The Moron’s claim that Catepillar will rehire laid-off workers if the Depression Stimulus passes. The reason? It doesn’t stimulate….more layoffs are likely.

    If you can’t stand to watch The Moron (I made that sacrifice for you), go to the .40 mark to see the CEO make The Moron look like, well, a moron.


  10. Confucius says:

    What a perfect fit. Caterpillar has just the equipment to move the dung pile known as Obama.

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