It’s not new and has never really stood up to scrutiny. Yet virtually every single shape who lobbied for corporate taxes reform has made a version of the argument. So did reality correspond to the theoretical case designed for the taxes reform bill? We’ve enough information to produce a fairly up to date assessment.
Unless you believe that taxes havens like Ireland, Bermuda or the Cayman Islands, all of which continue steadily to feature as major international holders of U.S. Treasuries, have emerged as financial superpowers suddenly, the more practical interpretation of the data shows the president’s much-vaunted statements about the taxes reform to be bogus on lots of levels.
Even while some dollars have been “brought home,” there remain trillions of dollars domiciled in these countries (at least within an accounting sense, which I’ll discuss in an instant). If anything, the main element provisions of the new legislation have given sustained bonuses for U.S. Which, knowing Donald Trump, was most likely the whole point to begin with.
Whether it is downgraded or not, the fact will stay that the likelihood of the US actually rather than technically defaulting will remain near to zero. However, Bond Funds is based on examples of risk. So they can be purchased as high, medium, or low risk. Each of them contains a proportion of each category, but the risk is based on the average for the Fund as a whole.
As an outcome, a downgrade of US debts will have the effect of earning all such funds higher risk. That means that countries such as Spain, Italy, etc, will see their debt for sale from these funds with a consequent influence on the price of their Bonds, and on interest levels. But, the biggest threat continues to come not from the united states – let’s assume that an offer over the debt ceiling is reached sometime soon – but from Europe.
As stated at the start, the fudge over Greece have not resolved the problem. I recently computed that to solve the problem in Greece would require around €750 billion over a decade. To recapitalize all the banks in Europe, to restructure the Capital over the Eurozone so that it becomes globally competitive on an identical basis to Germany would require anything from ten to twenty times that amount. Quite simply, it would need a modern day Marshall Plan.
- Theme 2: Regional economic divergence
- Give Wings to your Ideas
- Largely Balance Sheet improvements
- 51$36,000.00 $18,000.00 $504,000.00 $1,051,246.49
- 6% cash back on Groceries
- Supported MannKind Corporation’s $86M collateral raise and InSite Vision’s $22.2M private placement
- The home was a principal home for both spouses for at least 2 years
Such a course is not very impossible to achieve given the political will. It could go hand in hand with an identical Plan for MENA that would attract it in as a fresh Southern periphery of Europe. The question is if the political will exists to achieve that, and if the political realities of Europe can be overcome to bring it about. But, let me be clear. Because today That is, we are in a Long Wave Boom. A worldwide Depression would be serious for those who lost their careers, their houses and so on.
As I pointed out in my blog A Momentous Change, the consequence of a Depression within the context of a Long Wave Boom, would be to bring about a fast but brutal restructuring of Capital. Living requirements would precipitously fall, unemployment would sharply rise, and many businesses would go bust, especially in areas such as retail. Coming and under conditions where in fact the working class is weak suddenly, disorganized and largely leaderless it would not likely create conditions under which workers could seriously challenge Capital. On this basis, Capitalism would as it did many times before resolve the contradictions that beset it.