Wednesday, January 13, 2016

GE Announces Move to Large City - Don't Bet All Your Money On Cat Not Doing the Same

Yes, I'm aware that Cat has committed to stay in downtown Peoria. But that was then and now is now. And the "now" may not get any better. Ever. Let's look at the facts:

The country may be headed for a recession as bad or worse than 2008-9. The stock market has the worst start negatively ever.
The country has suffered the worst leadership in my memory.
The National debt is rising at an amazing clip will probably hit 20 trillion by 2017. And it must keep rising or programs already negatively affecting the middle class won't be funded.
We can only talk tough to China because China is financing us now. And talk is cheap. A good example is POTUS.
The Federal Reserve (which should be abolished) is run by wealthy people who have assured that not only will they keep their wealth but they will continue to grow it.
Growing government pensions will continue to bankrupt states as it is already bankrupting Illinois.
While December showed a quarter million more hired than laid off or fired, you must note that the growing employment was mainly in retail and the health industry. Not high paid jobs; just barely living wage jobs.
States, Counties and local governments do not have the money to buy new heavy equipment and will continue to use what they have currently. ( I drive a 2004 Lincoln town Car. Runs and rides like a dream. Except on the streets of Peoria, of course).
Expect metals to suffer a decrease in use. This decrease has severely impacted the purchase of new heavy equipment. Driving through the country, I note more and more of everything used rusting away.
While I have always supported light rail, there is money, lots of it, for consultants, engineers, land purchases, etc., there is no money to build. And some of the ideas are really stupid such as the light rail between Peoria and Bloomington. Here, again, God help us..
Credit card debt may be the highest in history.
Venture capital is appearing to be drying up.
In Peoria, expect to see higher garbage taxes when they start to be added to your already too high property taxes. Local politicians want to be reelected and are too worried about that to dare to actually raise property taxes or sales taxes.
Unless the Illinois EPA is completely corrupt, Peoria is soon going to have to stop polluting the Illinois River. Peoria is probably the biggest polluter on the Illinois River. Where are the radical environmentalists who are good at stopping progress but not much else? And where is the up to 3 hundred millions of dollars needed to correct the problems going to come from?
Our public water system is shot and city ownership will not improve the situation.
Peoria built too many grand projects that will need to be funded forever. Need I name any?
Caterpillar stockholders are not happy to see their stock drop precipitously. From a high of $116 a share a couple of years ago to $62 a share today.
A major management change at Cat could mean a review of ALL commitments.
Most wealthy people living in the Peoria area has seen their combined wealth drop by an estimated 2 billion dollars, PROBABLY A LOT MORE, (just on paper, they say),while the middle class earning can't keep up with inflation..
The poor in Peoria, of which there are many, will need and expect to receive more taxpayer benefits, especially if Hillary or Bernie is elected. Plus, about 40 % of all workers are employed by governmental bodies and many don't care whether politicians are competent. Just don't cut my job.
The Republican party that has been the chief supporter of big business like Caterpillar. Unfortunately, they are in disarray, most of it of their own doing.
The world appears to be going down the financial tube with China now entering the the dilemma.
Terrorists have taken over the usually sound thinking of our citizens. If they own stock, any rustle of the leaves sends them in a panic. That situation is not going to change. Funny, how people sold their stock when N. Korea made their hydrogen  bomb announcement. What do they think their ashes will do with their money??

I personally hope I am wrong on 70% of what I wrote. But as a gambler, I would take odds that I am more likely to be right. But I am an optimist when I know the facts pretty well. Tomorrow the stock market will be up 1000 points. N. Korea blows itself up and China, along with POTUS, changes their predictions to a 4% or better growth in 2016.

Happy New Year, y'all.  And thanks for reading my stuff. I'm no smarter than the next guy; just do more research than 90% of people my age. I was first elected to public office at the age of 75. Defeated a prominent Peoria woman, a nine year incumbent from my same party. Retired at the age of 85. leaving Peoria County with a BALANCED BUDGET. Like the Donald, I was never politically correct. Nor will I ever be.

Nor have I ever been guilty or convicted by any court of law. Nor will I ever be.



Anonymous said...

I agree. Cat could just as easily pull out and build somewhere else. May the lucky dog that wins the 1.5 Billion will bail them and Illinois out. :)

Merle Widmer said...

I left out a major fact. Incentives. While the little people who pay taxes in Peoria County do not know what incentives were offered by the City Council, the State of Illinois and the County Board, you can bet, they were substantial. But considering the circumstances, better incentives surely have been offered by major cities.