Low-Tax States Woo Caterpillar Exit From Illinois

In January, Illinois Governor Pat Quinn signed into law a significant income tax increase. Since then, according to a report by Kurt Erickson of Pantagraph.com - Wisconsin, Indiana and New Jersey have attempted to "poach companies" out of Illinois. But specifically, Caterpillar CEO Doug Oberhelman "said he's being actively courted to move (Caterpillar)". The Erickson report includes correspondence from the Governors of Texas, South Dakota and Nebraska.

"I stand ready to help convince you to relocate or expand in the fiscally conservative, low-tax Lone Star State," wrote Texas Gov. Rick Perry in a Jan. 24 letter.

CAT Tractor - photo by JAXPORT

Author and blogger John Lott writes: "Caterpillar is an Illinois institution. If the company leaves the state, it will be a big blow. It would be interesting to see how much increased tax revenue Illinois is actually going to get from this tax increase."

John is underestimating the impact. The tax increase is already a big blow. However, a Caterpillar move would likely trigger a devastating industrial exodus. Even before the latest tax hike, few right-minded manufacturing companies were seeking to locate in Illinois. If Caterpillar moves, the prospect of new manufacturing will completely dry up and the plants that are left will race for the exits - if they aren't already doing so.

This story appears to have been first published on the web site of a local Bloomington, IL newspaper - Pantagraph.com

Caterpillar CEO's letter talks of leaving Illinois
By Kurt Erickson

The chairman and CEO of Peoria-based Caterpillar Inc. is raising the specter of moving the heavy equipment maker out of Illinois.

In a letter sent March 21 to Gov. Pat Quinn, Caterpillar chief executive officer Doug Oberhelman said officials in at least four other states have approached the company about relocating since Illinois raised its income tax in January.

"I want to stay here. But as the leader of this business, I have to do what's right for Caterpillar when making decisions about where to invest," Oberhelman wrote in the letter obtained Friday by the Lee Enterprises Springfield bureau. "The direction that this state is headed in is not favorable to business and I'd like to work with you to change that."
Oberhelman said he's being actively courted to move.

"I have been called, 'cornered' in meetings and 'wined and dined' -- the heat is on," Oberhelman wrote. "Before, I never really considered living anywhere else and certainly never considered the possibility of Caterpillar relocating. But I have to admit, the policymakers in Springfield seem to make it harder by the day."

Cat spokesman Jim Dugan said the letter was designed to show Quinn that Oberhelman wants to be involved in finding solutions that benefit the company, which employs 23,000 people in Illinois.

The entire story is available at Pantagraph.com

Pentagon Report Predicts Phase Three Economic Attack

An unclassified 2009 Pentagon contractor report “Economic Warfare: Risks and Responses” by financial analyst Kevin D. Freeman is the focus of an important article by Bill Gertz.  The Gertz article, "Financial terrorism suspected in 2008 economic crash", appeared in the Monday edition of The Washington Times. Although most of the Gertz article focuses on "the first two phases", the most important information for us today is the prediction of the "PHASE THREE ATTACK":

The Pentagon report states that the evidence of financial subversion revealed that the first two phases of an attack on the U.S. economy took place from 2007 to 2009 and “based on recent global market activity, it appears that the predicted Phase III may be underway right now.”

The entire one hundred and eleven page report is available online at here at Scribd. The key section entitled "Phase Three: Collapse the Dollar, Bankrupt the Treasury" appears on page 66.

Based on the assumed nature of Phase One and Phase Two, a Phase Three attack would likely involve dumping of U.S. Treasuries and a trashing of the dollar, removing it from reserve currency status. This is clearly foreseeable as a risk and even could float under the cover of a natural outcome in much the same way that Phases One and Two potentially have been hidden.

The implications are extremely serious. If the dollar were not the reserve currency, there would be a mass dumping of Treasury instruments by foreign holders. Treasury interest rates would skyrocket, further worsening the annual deficits due to sharply higher interest payments on expanding debts. The Treasury would have to raise taxes dramatically, further dampening growth or the Federal Reserve would be forced to monetize the debt, worsening inflation concerns. Pushed to the limit, could the U.S. dollar would follow the path of the German currency in Weimar Germany following defeat in World War I.

This scenario in the 2009 report is very similar to that now being laid out by Porter Stansberry

and separately by Lindsey Williams

Related Posts -
Quantitative Easing and World War
Expletive Spewing Robots Expose Federal Reserve
The Federal Reserve Is Owned By Private Banks - Did you know?

UPDATE - Glen Beck's coverage of the Phase Three Attack