To: austrieconomist who wrote (3011 ) 11/6/2003 12:42:23 PM From: Jim Willie CB Respond to of 108767 multinationals would repatriate foreign earnings only if they intend to cut back on foreign operations otherwise, why forfeit that capital base? it is essential for continuation of foreign operations profit held can be invested anew profit sent away cannot I dont see much repatriation happening why would they send a flood of cash home to USA? for better growth opportunities? doubtful with higher taxes, higher currency, higher health costs, higher debt loads, higher regulatory hurdles, higher environmental obstacles, USA is not the place to be here is an analogy suppose as a teenager, you are having a party with some booze and some girls and other friends in the apartment over the garage, the carriage house your parents tell you that you can come home and repatriate your bottles of booze, with amnesty on the violation (underage drinking) but you know that means you would have to send your girls away sounds appealing, right? so you do so, get back under M&D's roof, and the party ends you are no longer having any fun whatsoever you are not whooping it up with rum & cokes if you had stayed, you'd be getting laid the only benefit is avoiding a visit by police for the underage drinking violations there are no such rules against making money abroad every year, a similar issue comes up with March 31st deadline for Japanese to repatriate their foreign-held money abroad, bring it back to Japan, convert it to local JYen currency, and continue whatever it is annually a non-event, much ballyhooed, but a non-event I suspect the Congressional lure of foreign money will have a much greater impact on speculators than in operational effects and wear off very quickly also, with such a deficit underway, I doubt the bill will pass / jim