Paul Otellini had a chat with Ken Auletta recently at the Council on Foreign Relations.
Intel of course, plowed through with a $7 billion investment in early 2009, even as stock markets were cratering.
Mr. Otellini used the opportunity of a speech before the Economic Club in Washington to vow that Intel would spend more money than ever to expand chip factories in the United States.
Soon after, the markets surged over 50%.
Today, he insists, "As grim as the economy may still appear, we are generating the cutting-edge innovation today that can drive tomorrow's vitality...And as much as business leaders must cope with the fallout of creative destruction, no one wins more from disruptive innovation than the average consumer. The consumer has more choice than ever before, prices go down as new technology (ramps the volume ?), and people have new ways to communicate and enrich their lives."
I am not a fan of inflation, so it's good to see Mr. Prescient continue to forecast further deflation in technology.
On the stockpiles of cash corporations have amassed, he says, "People are not adding jobs or adding capacity because of their view of demand, or their view of the environment -- the uncertainties I mentioned before. Having cash on hand, when -- particularly when you can borrow ultra cheaply, is just good, prudent treasury management for that point in time when things do reverse and you want to make those investments."
See, jobs will come back 1 day.
There is a funny bit, where Paul dabbles into certain conspiracies about CFR...
OTELLINI: Richard and I were talking about this before the lunch today. You guys have a fleet of black helicopters, right, with CFR? (Laughter.) You ought to be able to answer that better than I can. (Laughs.)
QUESTIONER: That one will come back to haunt you.
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