No not so fast there buddy. .. According to MMT the US government is “borrowing money!” from the tax exempt foreign divisions of these multinationals…
It’s not just transferring retained earnings into foreign UST accounts at the Fed as part of a scheme to reduce overall corporate tax liabilities… that’s not what is happening..
I wonder how many people know these “buybacks” are mostly unpaid taxes distributed to investors in US 🤔
— JustDario 🏊♂️ (@DarioCpx) May 3, 2024
In the case of $AAPL profits are kept offshore in 0% tax countries like Ireland, then $AAPL issues bonds in #US to finance these buybacks and when the bonds mature they use… https://t.co/HKwjqY8PYx
11 comments:
God knows where you get that from Matt. Have you been on the sauce again?
Look at the video Mike posted down thread , prof K asks why we are borrowing money we can just print ..
Neil better quick call these guys and tell them these is no difference :
https://boris.unibe.ch/85640/8/Privatedebtcost.pdf
“ We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm’s marginal financing decision and its effects on corporate investment. We show that firms with more growth options, higher bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to issue bonds. We also demonstrate that, by changing the cost of financing, these characteristics affect the timing of investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory.”
Better call them before they waste more of their time.,,
Stop what abouting Matt and address the point
"According to MMT the US government is “borrowing money!” from the tax exempt foreign divisions of these multinationals"
is complete nonsense and you know it.
What are you saying ? That when they say we are “borrowing” that is some kind of figure of speech?
🤔
Neil in clip in Mikes post below, Prof Kelton (top MMT person) clearly states “Why do we borrow our own currency in the first place?”
Are you asserting this is some sort of rhetorical question?
I can go find a monetarist better trained than Bernstein that can answer that for her…
So you made Bernstein look stupid (btw not hard) so what?
Making someone look stupid isn’t edifying anyone else…
Firstly the territorial tax changes put an end to the UST tax avoidance repatriation game six years ago. Now US entities repatriate the money and do share buybacks.
Secondly Irish subsiduaries operate in Euro, not USD. So the 'retained earnings' swapped into USTs have to come via the FX system, with the amount 'borrowed' coming from an entity that has a Federal Reserve Account.
Sell in May and walk away is happening in gold again by the looks of things ???
It always seems to affect gold more than stocks nowadays. Picks up again in the Autumn Oct/ Nov ???
He never explained to me why. But it was Salmo Trutta who told me that walk away in May always effects gold more than stocks. Since then I've kept an eye on it every summer.
Be interesting to see if it keeps falling until the Autumn.
Maybe the weather is more favorable for mining operations
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