Capital exSPINditures
I had CNBC on for background noise this morning as I got ready for work. Blah, blah, blah. The usual case of many words saying nothing. Then my BS radar started going off and I walked over to the TV.
The guy being interviewed was from the Business Round Table and was bragging about how all the largest companies were members and that, for 2006, their capex (CAPital EXpenditures) were projected to increase for over 50% of the companies. “Great for the American Worker,” he said. He was very upbeat, confident and polished.
Had the host left it at that, the propaganda spot… sorry, the interview would have ended and We The People would have felt all warm and fuzzy about our futures being in the capable hands of such benevolent corporate citizens.
Then the host, Carl Quintanilla I believe, threw the curve: “How much of this capex is actually being spent in the United States?”
Pause. “Um.. er.. We don’t keep those kinds of statistics”
“Well then, how much of these companies’ production would you say is from their overseas operations?”
“Over 50%.”
Good eye, Mr. Journalist. It is a beautiful fact that large corporations are going to increase their capital expenditures. You gotta ask where and why to get to the ugly part.