• Same story, different day...........year ie more of the same fiat floods the world
  • There are no markets
  • "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"

Charts from the Lunatic Fringe.

Zed

Size doesn't count!
Midas Member
Joined
Mar 30, 2010
Messages
11,495
Likes
8,869
Location
Springfield
Tax bill passing is inflationary, no?
This is the one off profit repat thing?

Errrrrrr... no... I can't why it would need to be. Are you talking price inflation or proper inflation? It should drive the USD up which will ease import costs if anything... domestically it will depend where the money is parked. If they buy back stock etc it may reflect in market 'inflation' of some sort. If it is invested in business domestically, new plant and equipment etc much of that will just go back OS... if it hits wages in competition for talent then you may get some flow through to street prices, but is it that big?! My best guess is it gives a short term USD bump (gold beware) and that benefit is just adsorbed by business rather than passed on, simply because its a one off. (correct me if needed, I'm not following the deal closely at all) I think it will ease pressure on the bottom line for businesses... for a while.

What is the structure of this deal? I must go read... maybe I'm well off track here.
 

savvydon

Gold Member
Gold Chaser
Joined
Dec 14, 2010
Messages
2,133
Likes
1,583
What B said.

The centerpiece is the permanent 40% reduction in corporate tax rates, down to 21% from 35%.
 

Zed

Size doesn't count!
Midas Member
Joined
Mar 30, 2010
Messages
11,495
Likes
8,869
Location
Springfield
What B said.

The centerpiece is the permanent 40% reduction in corporate tax rates, down to 21% from 35%.
OK... I was only thinking about the one off repat deal that was mooted. Is that still a thing?

That is back to the USA of old... all it means is that the private sector will spend it more rationally than .gov... I can't see it being that price inflationary, no more money is floating around. Really until monetary velocity picks up and wages get pushed pricing will be dominated by other factors ---> JMO
 

smooth

Gold Member
Gold Chaser
Site Supporter
Joined
Mar 31, 2010
Messages
2,704
Likes
4,562
OK... I was only thinking about the one off repat deal that was mooted. Is that still a thing?

That is back to the USA of old... all it means is that the private sector will spend it more rationally than .gov... I can't see it being that price inflationary, no more money is floating around. Really until monetary velocity picks up and wages get pushed pricing will be dominated by other factors ---> JMO
Less corporate tax = more manufacturing jobs at home = less true unemployment?? = rising velocity of US dollar? Am I wrong?
EDIT: .Gov will still spend their quota
 

Zed

Size doesn't count!
Midas Member
Joined
Mar 30, 2010
Messages
11,495
Likes
8,869
Location
Springfield
Less corporate tax = more manufacturing jobs at home = less true unemployment?? = rising velocity of US dollar? Am I wrong?
EDIT: .Gov will still spend their quota
Maybe quite true but it will also impact the USD value (up?) which will lower import costs and if there is investment in jobs there will also be plant and equipment which will probably be net OS purchases.... and all that is just offsetting what ever job's etc .gov would have otherwise funded with the money.

All in all its hard to say but I suspect that the net impact will not be a lot in terms of domestic prices. It will however be way more efficient use of capital so it should be net positive. Remember that it has not been lack of funds that is the issue here but rather lack of opportunity. The money is there hiding in the financial system, moving into the real world has been the problem. This may just end up in more share buy backs etc if they don't feel that the opportunity is there.

???????

Watch this space!
 

Zed

Size doesn't count!
Midas Member
Joined
Mar 30, 2010
Messages
11,495
Likes
8,869
Location
Springfield
I wonder if they will start retiring all this debt that has been raised for share buy backs etc.

.... as rates rise the debt will fall in value on the secondary market and they can buy it back for less.

Could be a sweet deal for them in the end.
 
Last edited:

savvydon

Gold Member
Gold Chaser
Joined
Dec 14, 2010
Messages
2,133
Likes
1,583
OK... I was only thinking about the one off repat deal that was mooted. Is that still a thing?
I think the one off repat deal to bring back dollars held internationally is still there at a rate of 15% tax. Guess they are trying to bring dollars home - don’t know what will become of them when they arrive. :don't know:
 

EO 11110

He Hate Me
Mother Lode
Joined
Jul 31, 2010
Messages
12,452
Likes
8,520
stock buy-backs. bb drives stock price up = options more valuable and stock price performance incentive bonuses kick in

win win for the execs that make these decisions
 

Goldhedge

Moderator
Site Mgr
Sr Site Supporter
Joined
Mar 28, 2010
Messages
30,604
Likes
37,388
Location
Planet Earth
stock buy-backs. bb drives stock price up = options more valuable and stock price performance incentive bonuses kick in

win win for the execs that make these decisions
so bb's are good for holders who sell and take profits...?
 

Goldhedge

Moderator
Site Mgr
Sr Site Supporter
Joined
Mar 28, 2010
Messages
30,604
Likes
37,388
Location
Planet Earth
I think the one off repat deal to bring back dollars held internationally is still there at a rate of 15% tax. Guess they are trying to bring dollars home - don’t know what will become of them when they arrive. :don't know:
Why would I pay 15% tax to bring a billion dollars back into the US when leaving it "over there" costs me nothing?

I could invest it "over there" just as easily as "over here".
 

jelly

Seeker
Seeker
Joined
Dec 6, 2010
Messages
497
Likes
298
Very interesting development in the silver commitment of traders report:
Commercial shorts are lower now than during the July 2017 low. In addition, they have decreased on this current upmove from 15.75. This looks very bullish for silver. An excellent buying area methinks.

SI.png

silver.png
 

louky

Silver Member
Silver Miner
Joined
Jun 8, 2014
Messages
4,378
Likes
2,128
Location
Bluegrass
Last time hidden bearish divergence played out, gold drop from 1301 to 1238. Be aware. If divergence plays out this time, gold will probably break 1238

 
Last edited: