Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: critical_mass who wrote (66270)	7/16/2005 1:02:48 PM
From: Moominoid	Respond to of 74559

I think that unless the government has a fixed or managed exchange rate policy (liked the fixed RMB rate in China), savings behavior and investment opportunities are probably going to be more important than "competitiveness" of industry or whatever in determing trade balances. But he seemed to put all the onus on the foreigners and none on the US. Are you referring to the amnesty for taxes on repatriated profits? The question there is as far as the USD is concerned I think is: what currency were those profits being held in? I mean they could be in US dollars sitting in a bank in Switzerland or wherever already? So does that mean net buying of the USD? Now they are just going to move them to a bank in the US? I am thinking about this and wondering what repatriating profits really means. I could set up a subsidiary in a foreign company that uses the profits to buy assets in the US, which it then owns? Is that repatriation? Maybe someone who understands this can post on it.