DrTorch
Proved mach and GTS to be liars
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RE: Double Dip is Coming!!!
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08-16-2010 08:04 AM |
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Ninerfan1
Habitual Line Stepper
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RE: Double Dip is Coming!!!
(08-15-2010 11:49 AM)Machiavelli Wrote: Guys I don't know. Everything I have been reading is stating that we are headed for deflation. Money supply is not increasing.
As the article Torch posted correctly points out, deflation has been here. It also correctly states that debts don't deflate while asset values do.
At some point you need to come to the realization that there is no singular indicator of economic strength. Meaning just because there is deflation doesn't mean the economy is ok.
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08-16-2010 08:10 AM |
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Owl 69/70/75
Just an old rugby coach
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RE: Double Dip is Coming!!!
Actually, a lot of the cash businesses are "sitting on" is overseas. If they bring it home, they have to pay US taxes on it. So there's no point in bringing it home unless the investment opportunities here are substantially better than elsewhere. Right now, it's looking like other places are recovering ahead of us. So, it's those other places that the money will be invested.
Charlie Rangel wanted to encourage US companies to bring the money home by taxing it even if they don't. My expectation would be that instead of bringing the money home, a more rational response for most US based companies would be to move their corporate headquarters overseas. Almost all the oilfield service companies have already done so, because their operations are primarily outside the US at this point. Perhaps because of his current troubles or perhaps because somebody talked some sense into him, Rangel seems to have backed off.
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08-16-2010 09:02 AM |
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DrTorch
Proved mach and GTS to be liars
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RE: Double Dip is Coming!!!
(08-16-2010 09:02 AM)Owl 69/70/75 Wrote: Actually, a lot of the cash businesses are "sitting on" is overseas. If they bring it home, they have to pay US taxes on it. So there's no point in bringing it home unless the investment opportunities here are substantially better than elsewhere. Right now, it's looking like other places are recovering ahead of us. So, it's those other places that the money will be invested.
That's an interesting discussion all by itself. I've got the Apr 27, 2009 Chem & Eng News in front of me, and it's got an article talking about Big Pharm bringing manufacturing back to the US.
I'm sure the issues and challenges vary widely depending on the product. But, IMO the gov't should have been cognizant of this trend, and adjusted the taxes accordingly.
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08-16-2010 09:30 AM |
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SumOfAllFears
Grim Reaper of Misguided Liberal Souls
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RE: Double Dip is Coming!!!
My feeling is business are sitting on money simply because their competition is.
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08-16-2010 09:34 AM |
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DrTorch
Proved mach and GTS to be liars
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RE: Double Dip is Coming!!!
http://mjperry.blogspot.com/2010/08/infl...-time.html
Quote:There's been a lot of debate lately about inflation, and many conflicting opinions about whether we're headed for inflation or deflation. The consensus among economists seems to be now leaning more towards pending deflation than inflation, and yet gold, the classic hedge against pending inflation, is still trading close to all-time historical highs of around $1200 per ounce,...
So despite low levels of inflation over the last five years, inflation variability peaked in 2009 by both measures, and those historically high levels of variability might be adding to the confusion about whether we're headed for inflation or deflation.
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08-16-2010 12:36 PM |
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