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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (39427)	10/10/2003 2:53:10 PM
From: energyplay	Respond to of 74559

The Wall Street Journal has noted that the world is running a large trade defict with itself....and since we aren't trading with Mars yet, there is likely to be some error in the numbers. I beleive that about much of the incoming capitial is acutally from captive foreign subsidiaries. Why bring back money as dividends which will be taxed when you can bring it back as a loan or investment which is not taxed ? Since the US has been a high tax area for a long time, I would make a guess that this is a very large number. The number could be from 0.5 to 2.0 % of GDP. So when the US has a current account deficit or 2%, that may actually be neutral. Then today's 5% defict could be really around 3-4 %. This would also provide a much better explaination for the changes in the value of the USD. Even a small percentage will end up delaying the end of the world a long time....