Friday, October 31, 2014

The (Global) Military Industrial Complex or....It's SO much FUN being in town!!

Familial responsibilities require I return to Albuquerque every now and then. I use my spare time to research some of the incidents that influence our economy. What follows is an example of the complexity of the global economy. I think it also adds evidence to the idea that blaming the President (see: That Obama!!), whoever s/he may be, is merely the easiest way to express frustration with the fact it's (our political system) a juggernaut.


This article....

http://news.yahoo.com/lack-mechanics-threatens-u-air-force-target-date-032317046--finance.html

got me wondering about United Technology Corporation's (UTC) role in the military industrial complex. As the next article shows, it has intimate ties to China.

http://news.yahoo.com/lack-mechanics-threatens-u-air-force-target-date-032317046--finance.html

The article above talks about how UTC scapegoated two of its divisions, Pratt & Whitney Canada (P&WC) and Hamilton Sundstrand Corporation, letting them take the blame for UTC's traitorous activities. In 2012 P&WC paid a $75 million slap-on-the-wrist fine to the U.S. Government (who knew as part of the Fair Trade Agreement that Canadian companies would be liable to the U.S.?) for giving software to the Chinese that enabled them to perform transgendering modifications to commercial helicopter engines & morph them into sophisticated warships.

"P&WC exported controlled U.S. technology to China, knowing it would be used in the development of a military attack helicopter in violation of the U.S. arms embargo with China," said U.S. Attorney David Fein of Connecticut. (para 6 in this article


From this articleThe government said the $75 million settlement included $20.7 million in criminal fines, forfeitures and other penalties to be paid to the Justice Department, and $55 million in payments to the State Department as part of a consent agreement resolving 576 administrative export control violations. 

The following paragraph is excerpted from the article below it. Although UTC denied awareness, if you've been reading the leadership/motivational literature for the last couple of decades you know that's an unacceptable excuse. And as noted in the article below, UTC admits that what their "children" were doing gave them access to over $2 billion in commercial helicopter business. Hey! C'mon Justice Dept., wha's gd fer China is gd fer Uhmayrihcuh.


KNEW FROM OUTSET
According to court documents, Pratt & Whitney Canada allegedly knew from the outset of the Z-10 [helicopter] project in 2000 that China was developing a military helicopter, but failed to notify its U.S. parent and Hamilton Sundstrand until years later.

http://www.reuters.com/article/2012/06/28/us-usa-china-helicopters-idUSBRE85R1AG20120628


Also from the above article...
The problem arose when Hamilton Sundstrand delivered certain modifications to the engine control software, which allowed China to test and develop the Pratt & Whitney Canada engines as it was developing the new military helicopter.

...Western experts said the Z-10, first delivered to China's People's Liberation Army in 2009, is developing into one of the world's most modern and capable combat helicopters.



In a later paragraph we read of the true impact of the "fine."
....the penalties are unlikely to affect the company's sales in China, which accounted for almost $10 billion of its 2011 sales.

A bit about...
Louis R. Chênevert, CEO of UTC

Career

Chênevert assumed the position of President and Chief Operating Officer of UTC in March, 2006. He was elected president of Pratt & Whitney in 1999, after working with Pratt & Whitney Canada for six years. Before this, he spent 14 years at General Motors.
He serves as Vice-Chairman of the Executive Committee of The Business Council for 2011 and 2012.[6]

Personal life and honors

While CEO of United Technologies Corporation in 2008, Chênevert earned a total compensation of $22,032,175, which included a base salary of $1,318,974, a cash bonus of $4,294,844, stock granted of $4,376,921, options granted of $11,774,710, and other compensation of $266,726.[7]
He is the 2009 recipient of the Honor Award from the National Building Museum
On 22 May 2011, Chênevert received a doctorate honoris causa from HEC Montréal.
US aviation trade magazine Aviation Week & Space Technology named Chênevert its Person of the Year 2011.

How much of this can we blame, or thank, President Obama for? Perhaps most importantly, we can be grateful to the Federal Court for not fining UTC more than they did. After all, as an American-based multinational corporation paying its CEO over 22M, we know there's a chance any of us could someday stand in Mr. Chenevert's shoes. We wouldn't want to discourage children by spanking UTC too hard. And while we're waiting to be discovered, we can sleep soundly knowing that the secrets UTC shared with the Chinese will, in the long run, hopefully benefit us all...and especially Americans. Maybe we're not sure how, but that's okay; the new Fall programs have started. 
And finally...all the above threatens national defense by keeping us from meeting the deadline for the F-35. 

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