Did You Vote YET?!

This is the face that brought you the garbage tax, endangered lives by cutting Fire Station 11, and rarely saw a tax she didn't like. Voters in Third District got sick of her, and overwhelming voted to toss Thetford to the curb a couple of years ago. Gale Thetford wants her job back, Gawd help us.

If you havent voted, get off your butt and get to the polls. You have two hours. If you choose to stay at home in your warm barcolounger and watch a re-run of Seinfeld, it will be all your fault when our taxes go up, the garbage fee sky rockets, your backyard is taken over by trains, trail, and a trolley, City Council meetings run past midnight and we have to endure painful, long winded speeches again, all starting with, "UHM..."

Council is on the right track. Things are better since Ran$burg and his klan were bootkicked to the curb. Yes, we all wish politicans would move at a faster pace and accomplish what they promised when they campaigned for the job. That said...

For heavensakes, lets not let the greedy slime back in just cause we're cold, tired, and a bit lazy.

Your Future Is Here. Required Reading For All Peorians. The Wall Street Journal: Global Trade Galvanizes Caterpillar

As promised, here is the whole article. I hope my thirteen readers appreciate this. I couldn't find this on the net, and my scanner doesn't work well on newsprint so Polly has to type this whole interview. I type, like, four words a minute, so blame all typos on greedy WSJ publishers who don't like to share.

Global Trade Galvanizes Caterpillar
Maker of Heavy Equipment Thrives Under CEO Owens, Fervent Free-Trade Advocate
From The Wall Street Journal, Marketplace Section, Page B1
Monday, February 26, 2007

Written By: Ilan Brat and Bryan Gruley (NOT POLLY)

Since becoming Chairman and chief executive of Caterpillar Inc. three years ago, Jim Owens has seen the Peoria, Ill., maker of heavy equipment nearly double in size-to $41.5 billion in revenue last year- as it rode a global boon in construction and mining.

The growth had its pains, as Caterpillar struggled with production bottlenecks, lengthy delivery times and capacity-expansion missteps that occasionally disappointed Wall Street. Now Mr. Owens, 61 years old, says he is more concerned with fattening the company's bottom line by making manufacturing more efficient, slimming dealer inventories and continuing to press for free trade.

The Ph.D. from North Carolina State University, who joined Caterpillar 30 years ago as an economist, oversees a global behemoth of 278 factories and 94,000 employees. In Naples, Fla., attending a recent meeting of the Business Council, Mr. Owens discussed world class manufacturing, free trade, Sen. Barack Obama, Federal Reserve Chairman Ben Bernanke and the NCAA basketball tournament.

Excerpts:

WSJ: Caterpillar just announced a $7.5 billion share buyback. Why?

Mr. Owens: Sitting on a big wad of cash doesn't make any sense whatsoever for shareholders. It also tends to promote bad practice among management. Almost all good companies make their worst mistakes in the best of times. That's when you get into overreaching. You've got more [cash] than you know what to do with, and you think you're so damned good you can buy anything and make it better.

WSJ: How is it that Cat added nearly $20 billion in revenue in the last three years?

Mr. Owens: We've done it on the strength of the global economy. In 1998 through 2002, we experienced a prolonged recession in our key markets. In the 2004-through 2006 period, the global economy experienced its best three years of growth since World War II. That drove strong commodity price, and the combination of [those and] the strong economy led to a significant increase in investment for natural-resource development and global infrastructure. When this surge in demand started in 2004, we were well-positioned in terms of market leadership and some excess capacity to realize significant organic growth in a very short period of time.

WSJ: Looks like you're going to easily hit your goal of $50 billion plus in annual revenue by 2010. Is it time to set the bar higher?

Mr. Owens: What we're really about in this near term is just a relentless focus on execution. We're very focused on introducing a Caterpillar production system that's universal across all of our manufacturing operations world-wide. We've had a propensity to do things at least slightly differently all over the world. We've bench marked many different industries and then our own best-in-class facilities and created our own recipe book. Whether our top-line sales are $45 billion or $60 billion is going to be a lot less important than pulling off that operational excellence. The Holy Grail is not top line sales growth; it's bottom line [profit] growth.

WSJ: Are you concerned about the new political climate for the trade in Washington?

Mr. Owens: I have been very worried about a turn inward, a feeling that we can sustain our standard of living by building walls around the country and blocking trade. That would just be a grievous mistake, bad for the United States and bad for the global economy. I've been traveling in Asia for 26 years, and I've seen hundreds of millions of people lifted out of abject poverty from the benefit of exporting to the United States.

I would say the Republicans made a terrible mistake in partisanizing trade. It needs to be a bipartisan, national policy to be a free-trading country. It's easy to bash [free trade], because if somebody loses a job, you can personalize it. The fact tens of thousands are benefiting by buying very high-quality, very low-price goods imported from China is one of the great realities of the American standard of living.

WSJ: What about the Democrats?

Mr. Owens: I'm encouraged that Democrats who as a party were bashing trade now have more thoughtful people stepping forward to say this shouldn't be about partisanship. Barack Obama is a senator from our state, and I've had the chance to talk to him about it. I quite frankly was very disappointed he voted against [the Central America Free Trade Agreement]. How can you not want free trade with countries that have done most of the things we'd like them to do in terms of democratizing their countries? [But] he seems to be a guy who can move off of extreme partisan positions and try to find win-win positions. We need to win him over.

WSJ: How do you make the argument that free trade is a win-win situation to someone who fears his $75,000-a-year job will be outsourced to China?

Mr. Owens: It's a very difficult sell. It's like the guy who's making horse carriages when the car comes along. How do you make the case to him that the car's going to make the world a better place? We try to educate our employees on the importance of exports to us. We exported $10 billion worth of product last year, and many jobs in our U.S. facilities are very much geared to export markets. Many small manufacturing companies that supply materials to us probably don't consider themselves as exporters, but they are. If we don't export, we don't buy from them. So they lose jobs.

WSJ: Will Caterpillar's U.S. work force shrink as it expands abroad?

Mr. Owens: We're going to have a lot more employment growth outside than inside the US. We [Americans] are 5% of the world's population. And today, we're more than 20% of global gross domestic product. So it shouldn't shock Americans or even worry us too much that 10 or 15 years from now we're going to have a smaller percentage of GDP because our country's not growing as fast as emerging countries. It doesn't mean that our standard of living's going to go down. It just means that theirs is going to grow much faster.

WSJ: What's the best country to do business in?

Mr. Owens: Brazil in some respects is challenging, but we've got one of the best operations we have in the world due to the leadership we have in that facility and the espirit de corps. I was in China recently, and I heard people there say they wanted to be the Brazil of Asia.

Some of our large Midwestern facilities have kind of a challenge of mixed allegiance to the company or the union, a we/theyism that we haven't successfully urged. We're trying to have people understand that if we pay you, you're on our team and we want your heart and soul, we want you to help us be cost-effective, we want want you to help us improve quality.

WSJ: What was the buzz at Business Council?

Mr. Owns: The buzz is always about the economy. The key issue right now is do we see some easing of interest rates over maybe the latter half of the year and re acceleration of the U.S. economy and a soft landing here that creates a soft landing in the global economy? Or do we end up tightening again and having slow growth become slower growth or recession in 2008? We've got to drive some liquidity. I'm certainly feeling that inflation is a minimal risk, and I worry that we may overcorrect.

WSJ: What does Ben Bernanke do?

Mr. Owens: I think he's gong to sit on pat hand for a while. I think we're going to see inflation be very well-behaved, and I expect he'll be in a position to be comfortable easing interest rates in the latter half of the year.

WSJ: Did executive compensation come up at the Business Council?

Mr. Owens: It's amazing how much more time boards are spending looking at proxy statements and compensation write-ups and dotting i's and crossing t's. How does this help us compete in the global marketplace? For CEOs, if you make over $1 million, that's "excessive pay." If you participate in financial services or in sports, that's OK.

WSJ: You're a big college-hoops fan. Who's going to win the NCAA basketball tournament?

Mr. Owens: If I had to pick one team and put money on the table right now, I'd pick Florida.

Graphic:

Five tips for Managing a Global Giant

1. Act with integrity, value your people.

2. Complacency is incompatible with success.

3. Stay focused on bottom-line growth.

4. Don't shy away from tough debates.

5. Embrace globalization.

Oh. Well. When You Put It That Way....

You just have to read the excellent, straight forward, and fascinating interview with Caterpillar CEO, Jim Owens in today's Wall Street Journal. Owens provides a lot of insight on where the company is headed. He is a strong proponent of globalization, and makes no apologies for outsourcing.

One such tidbit:

WSJ: How do you make the argument that free trade is a win-win situation to someone who fears his $75,000 a year job will be outsourced to China?

Mr. Owens: It's a very difficult sell. It's like the guy who's making horse carriages when the car comes along. How do you make the case to him that the car's going to make the world a better place? We try to educate our employees on the importance of exports to us. We exported $10 billion worth of product last year, and many jobs in our U.S. facilities are very much geared to export markets. Many small manufacturing companies that supply materials to us probably don't consider themselves as exporters, but they are. If we don't export, we don't buy from them. So they lose jobs.

And then there's this:

WSJ: Will Caterpillar's U.S. work force shrink as it expands abroad?

Mr. Owens: We're going to have a lot more employment growth outside than inside the US. We [Americans] are 5% of the world's population. And today, we're more than 20% of global gross domestic product. So it shouldn't shock Americans or even worry us too much that 10 or 15 years from now we're going to have a smaller percentage of GDP because our country's not growing as fast as emerging countries. It doesn't mean that our standard of living's going to go down. It just means that theirs is going to grow much faster.

The entire article is worth reading. In fact, for anyone who's future is CAT dependent (i.e., Employed by CAT, anyone who owns property in Peoria, or who's job is dependent on CAT doing surviving and thriving- and in this town, who's job isn't?) it should be mandatory reading.

I'm not sure the link I provided will allow you to read the entire article. Greedy dorkwads at the Wall Street Journal only provide a teaser paragraph and then want you to subscribe. I will try to type the whole thing up later tonight. Nothing good on T.V. anyway. Meanwhile, I suggest you prepare for the future by learning Spanish. Brazil, according to Owens, is the best country to do business in right now.

Yummy Oscar Goodness

Actually, I didn't watch the Oscars because, frankly, I couldn't care less. If I have a lot of laundry to fold and Law and Order is a repeat, I might tune in to see the dresses. Polly does have a thing for fancy gowns, but never has an occasion to wear one. Sometimes I wish our town was just a little less casual. I would never dream of asking for a tax subisdized venue to justify my purchase of a designer garment. However, after a long winter of long underwear, lumpy/itchy wool fisherman sweaters, and frozen snow boots, a little glamour would be much appreciated.

I couldn't find any pictures of my fantasy lover boy, Russell Crowe, at last night's award show. However, I did find this lovely image.



Sigh. Rich, gorgeous, a genius, a gladiator, and a sexy Aussie accent. What more can a girl ask for?

So Help Me Gawd....

I completed my tax return over the weekend. Despite my pathetic salary, no refund this year. So help me Gawd, if any of my tax dollars are used for yet another useless yet wildly expensive TIF to subsidize luxuries for Peoria Civic Center-hoity-toity-pigs-at-the-trough, I will personally punish each and every council member who votes pro TIF by dumping a stinky bucket of slops on their front lawn. You want stay at the Ritz? Fine. Hell, I'd like to stay at the Ritz at least once before I die. Just don't expect tax payers to subsidize your spa day and thousand thread count sheets. What next? A TIF for city wide aromatherapy treatments?

When are these people going to learn that continually throwing good money after bad at a failed project/policy will not redeem it?

Any City Council candidate who hems and haws, ducks, bobs, weaves, dodges, or worse- states, "we need to study this further" on this issue should be boot kicked off the ballot. Period.



Hoity-Toity-Peria-Civic-Center-TIF-Pig enjoying a relaxing tax payer subsidized mud bath at the proposed downtown Hotel and Day Spa.

The Power of the Post

Two big, fat, huge, bow-from-the-waist-all-the-way-to-the-toes hat tips to bloggers C.J. Summers The Peoria Chronicle and the "pseudo anonymous blogger" (I really don't know who you are btw) at Peoria Illinoisan.

This time around the issue d'jour for the At Large City Council elections is the "Kellar Rail or Trail?" controversy. Have no doubt, many running wouldn't have a clue about this issue were it not for C.J. harping and educating the community about the costs and detriments that could occur should a rail line become a bike path. Previously, Polly was all in favor of the bike path simply because I live close to the rail line and don't see trains use it very often. I drive over the train tracks on Knoxville close to Junction City every day. In the last five years, I think I've been held up by a train crossing the tracks there maybe twice. As luck would have it, one time I was on my way to Proctor Hospital for stitches, but that is another story. However, C.J.'s insightful and well researched posts on the topic have me thinking twice. I chuckled when I heard that the proposed trail could be used for cross country skiing. Sure, it could, but this winter so could most sidewalks and unplowed city streets. The cross country skiing suggestion warrants the most obvious of questions: How profitable could another trail be for the community when it is freezing cold in this town at least six months a year? We have the Rock Island bike trail, which I when weather allows I can personally testify, it is well used. However, how much money does it actually bring in? I like to bike the trail during the spring and summer months, but to be honest, I've never stopped anywhere to buy anything. There have been times when I have run out of water and would have liked to purchase another bottle, but there isn't any place to do so for most of my eleven mile ride. Kellar Trail proponents say this trail will be different, but other than Junction City, does any retail outlet currently exist?

Peoria Illinoisan gets a hefty salute for thinking out of the humble blogger box and asking City Council candidates to participate in his issues quiz. Damn. I wish I would have thought of that! PI's quiz was more insightful than anything I've seen in the PJ Star. Polly's advice of the day: Be wary of candidates who state, "That issue has been put to bed by the current City Council, Park Board, etc." in lieu of providing a real answer. As we've seen with Fire Station 11 and the Garbage Tax, hot button issues don't die. Rather, they continually resurface and bite us all in the collective ass/pocketbook.

C.J. and P.I., you inspire and motivate me.

Hey! Clifford Ray! Good News!

Master Dahl,

Sounds like they're working hard for you! I say a prayer for you every day, Buddy. Tell your dad that we really miss his blog, and we want an update as to how you, your little brother, and Mommy are doing. Stay strong.

Love,

Aunty Polly

New, important, and hopeful research in the battle against Batten Disease.
Check it out! And then, if possible, write a check. I didn't know anything about Batten's Disease until a year or two ago. In Pollyterms, (and I'm not an expert by any means) I describe Batten's as similar to Alzheimer's, except that it strikes little kids- resulting in seizures, memory loss, blindness, paralysis, and eventually- death. Most kids don't survive past the teen years.

I think one of the most frustrating things about this heartless killer is that experts (real ones, not the Polly kind) agree that a cure is within reach. However, since Batten's is considered a "rare disease" funding is lacking. Rare diseases are not rare. Chances are quite good that you or yours will confront one. Maybe it is about time that Americans demand that government dole out research dollars differently.

Ain't We Got Fun?!

See Vonster, Polly is not a mushy, liberal, hairy leg pacifist. Stories like this one make my day! I'm sure this kick ass senior citizen didn't enjoy killing a thug while defending himself and friends. The guy might not be in the mood to celebrate, but I'd like to buy him a drink and pin a medal to his chest anyway. Kudos to this whole group of senior citizen tourists who took on a group of thugs, won, and then proceeded with their Carnaval Cruise vacation. Kudos to officials in San Jose who didn't hold up the Senior-Citizen-Kick-Ass-American-Tourists and got them back to the ship before it set sail.

Okay, the guy pictured here is not the kickass senior citizen mentioned in the article. That guy was only 70. This dude is 84! Forget buying a gun, Polly just needs an older (buff) man!