Tuesday, April 25, 2017

IMF, "cash" what cash? Have you any idea how the $2.2 trillion in retained foreign earnings is invested?

“Is the U.S. Corporate Sector Ready to Accelerate Expansion—Safely?

The potential for a one-off repatriation of retained foreign earnings, including liquid funds held abroad.

Repatriating liquid assets held abroad by U.S. companies would also benefit the information technology and health care sectors, where 60 percent of the $2.2 trillion in unremitted foreign earnings held abroad is concentrated.

Cash windfalls from repatriation would likely accrue to cash abundant sectors”

In order to analyze the effects of any repatriation of retained foreign earnings, one would need to know how that money is invested… because you can be absolutely sure it is not in cash under corporate treasurers’ mattresses.

That is why I ask IMF whether they know. If they don’t then they better find out before they speculate on what the repatriation of these retained foreign earnings would signify. 

What if the $2.2 trillion is all invested in treasuries? J

This is somewhat similar to all those divisive statements that reference that the wealth of the 62 richest equals that of 3.6 billion poorest, without the slightest thought given to how that wealth could be transferred.