What would happen if....

I'll keep this brief. I don't start many threads but i'm curious enough to start this.

During the presidential term of George Dubya there was a paper released by the Neo-cons (i believe) outlining a New American century.
America looks like, from the outside like it's preparing for a collapse of the financial system. If it's not for that then it's preparing for war.
The last few threads started recently in this forum are outlining the stock markets losing ground and the potential collapse of other currencies world-wide.

So here's my question: If the elite have TRILLIONS of $$$ hidden away on offshore accounts what would happen if it all made it back to the U.S suddenly?

reply to post by EA006


I see this threads being avoided like the plague. Thanks ATS members

reply to post by EA006


To be fair, you only gave it 38 minutes... some things have to be thought about a lot.

My very simple thick as a brick take on it.
If you are one of the "elite" and you do have part of this huge mahoosive hoard of cash offshore, then you might hear a whisper or two.
If you heard the economy was going to collapse (as per recent ATS threads), would your slice of the huge mahoosive hoard make a difference? No, probably not.
So in my opinion, if it's going to go tits up, then it's going tits up. Turn your papery pretty stuff into heavier stuff that goes clinkety clink when you bang it together, ask the butler to bring you a large, no very large whiskey, and sit back with some popcorn.

Not very well thought out but hated to see your thread with no replies, has happened to me and it sucks.

EA006
So here's my question: If the elite have TRILLIONS of $$$ hidden away on offshore accounts what would happen if it all made it back to the U.S suddenly?

The same thing that always happens when a very large influx of cash is injected into a country's economy. This:

Hyperinflation

EA006
I'll keep this brief. I don't start many threads but i'm curious enough to start this.

During the presidential term of George Dubya there was a paper released by the Neo-cons (i believe) outlining a New American century.
America looks like, from the outside like it's preparing for a collapse of the financial system. If it's not for that then it's preparing for war.
The last few threads started recently in this forum are outlining the stock markets losing ground and the potential collapse of other currencies world-wide.

So here's my question: If the elite have TRILLIONS of $$$ hidden away on offshore accounts what would happen if it all made it back to the U.S suddenly?

I would assume it would crash the financial market if that much currency suddenly hit the US after not being in the US for so long. Other than that, I am not sure it would make much of a difference. If it were just in an offshore account somewhere and not invested in anything then it would not really do much that I can think of. If it were invested and suddenly dumped then whatever country those funds were invested in would essentially go into an immediate financial crisis.

It is kind of like when money is printed it degrades he value of the money out there unless taken out of the system and replaced by the new money. If that much is "unaccounted" for in offshore accounts and was suddenly pumped back into the US economy it would degrade the value of the dollar and essentially collapse the market me thinks.

I am no financial guru by any means so what I have just posted could be completely incorrect.

EA006
So here's my question: If the elite have TRILLIONS of $$$ hidden away on offshore accounts what would happen if it all made it back to the U.S suddenly?

The Institute for Policy Studies finds that the 2004 tax holiday enabled 843 companies to reduce tax rates from 35 percent to just over 5 percent. These companies repatriated $312 billion in profits, while avoiding about $92 billion in federal taxes. And 58 companies, which accounted for almost 70 percent of all funds repatriated, slashed nearly 600,000 jobs while saving an estimated $64 billion in taxes.

Tax Holidays, Big Pharma And Big Job Cuts

That is what happened last time the money was repatriated in a Tax holiday.

IF there is trillions that suddenly flood the us market, it would cause a massive devaluation of the dollar.

I agree with the above poster. Valuable commodities are the only real winners. Our paper money is backed only by the amount of people using it. Not by any amount of gold stashed away.

EA006
reply to post by EA006

 

I see this threads being avoided like the plague. Thanks ATS members

You didn't say "Obama smells of poo" so it's your own fault.

BritofTexas

You didn't say "Obama smells of poo" so it's your own fault.

Yup, obummer bashing is all the rage here on ATS.

reply to post by Krazysh0t


I see. What would happen if the money came back and payed off the deficit? Same thing?

reply to post by shaneslaughta


You know i re-read your post as i was answering krazyshot. If there has to be a correction in the dollar value to "right" the system wouldn't bringing all the money back help that?

reply to post by EA006


Asset bubbles will form. Where? and what should I do?

1. First, understand the drivers and basic nature of asset bubbles and how to recognize them before they burst.

a) US Equities. @ all time highs. Fundamentals don't come close to supporting current valuations. US Federal reserve and to a lesser extent the G7 central banks are debasing currencies at the same time so none seem to inflate against the others. CB's are not likely to change behavior until they are forced to.

b) Residential Real Estate. 60% of all transactions are cash only. The printed money is coming home to roost. It's US banks, hedge funds and foreign investment. Very little in the way of new home construction though so supply is under control of Banks holding a huge pool of foreclosures.

2. Deploy hedges against the risk of currency collapse.
a) Farmable land in stable jurisdictions. Ideally, income producing property bought with cash (or if possible, unsecured loans.)
b) Physical precious metal. Gold, silver platinum and palladium. The markets are artificially suppressed, and all are priced for accumulation. Only buy PM's with savings, don't speculate and deploy money you are likely to need soon.
c) Bank at credit unions.
d) learn to grow food.
e) Barter and buy local.
f) When you consider a vehicle, plan for $10/gallon gasoline.

reply to post by shaneslaughta


If I were sat on any large amount of money offshore which was "extracted" from the US economy once upon a time, what reason in the here and now would I have to put it back in?
Unless maybe I was told to
To me you'd be foolish to bring it back, and risk any investment you used with it becoming devalued, and you'd be foolish to leave it where it was due to a possible knock on effect once one domino falls.......

Hyperinflation is the answer to the question as has been stated... Germany, Zimbabwe..... wheelbarrow of notes for a loaf of bread?
Thing is investing in precious metals isn't necessarily the answer either, as I understand the demand has probably outstripped the physical supply, so you'd be in danger of exchanging one piece of paper for another.
I would have to hedge my funds.... gold, silver, platinum, scandium etc.

EA006
reply to post by shaneslaughta

 

You know i re-read your post as i was answering krazyshot. If there has to be a correction in the dollar value to "right" the system wouldn't bringing all the money back help that?

If it would pay off our debs it would help. But the only real way to correct for inflation is either give the dollar more value by making more exports or by printing less money.

reply to post by BritofTexas


I read the link. Thanks.

So why does re-repatriating cause so much Unemployment?

EA006
reply to post by Krazysh0t

 

I see. What would happen if the money came back and payed off the deficit? Same thing?

Do you mean the debt or the deficit? Paying off the deficit is a moot point. Clinton ran a surplus by the end of his presidency, we still had a national debt though. Paying off the debt would make it so that there isn't a single dollar in the US economy since every dollar is really a $1 debt note. That would be a different kind of economic apocalypse.

Mufcutcakeyumyum
so you'd be in danger of exchanging one piece of paper for another.

If its 100% backed by items of value your risk is less as they don't print more then they have to back it.

reply to post by Krazysh0t


You're right i meant debt.
So if the $17tr was payed off it would also damage America?

EA006
reply to post by EA006

 

I see this threads being avoided like the plague. Thanks ATS members

What gives you the impression that yet another totally conjectural thread is the most important thing for ATS members to reply to at 7:45 in the morning?

shaneslaughta

Mufcutcakeyumyum
so you'd be in danger of exchanging one piece of paper for another.

If its 100% backed by items of value your risk is less as they don't print more then they have to back it.

US Dollar is not backed by anything, ok, maybe USA economy, but then, isnt that a loop ?
Currently I think USD is a lot like Zimbabwean dollar.
Trillions! its just you dont see it. Its just a little paper, backed by Goverment promises.