Thread: Asian financial Predictions: End of the World?

Originally Posted by trevsfriendbruce

...economist and best-selling author Robert Wiedemer

Neither are qualifications of actually knowing what he's talking about - particularly the 'economist' title makes him suspect.

---Update---

Originally Posted by tomcat

...yes, the report referred to US companies hoarding USD...

Two issues here:

- why should companies not be holding on to their profits, as they realize they need whatever profits they generate now, to survive whatever even rougher times lie up ahead.

- I suspect a lot of that 'hoarding' isn't actually dollar bills stuffed into mattresses, or stacked up in safes.

- I'd rather suspect that these are currency and profits help abroad, from foreign earnings, that aren't being repatriated in order to avoid unreasonable taxation - and as long as the US, or states, aren't willing to deal, I see no reason for these companies to make an effort to repatriate their earnings.

Originally Posted by Cthulhu

- I suspect a lot of that 'hoarding' isn't actually dollar bills stuffed into mattresses, or stacked up in safes.

Originally Posted by Cthulhu

I'd rather suspect that these are currency and profits help abroad, from foreign earnings, that aren't being repatriated in order to avoid unreasonable taxation - and as long as the US, or states, aren't willing to deal, I see no reason for these companies to make an effort to repatriate their earnings.

Originally Posted by Cthulhu

Originally Posted by tomcat
...yes, the report referred to US companies hoarding USD...

That refutes your suspicion I think...if they are USD they have been repatriated...they might be doing it because the dollar is down and they think it is going to rise...they might also be trying to shore up their share prices or...

Originally Posted by Cthulhu

why should companies not be holding on to their profits, as they realize they need whatever profits they generate now, to survive whatever even rougher times lie up ahead.

as you say...they are going to need cash in the future...which is what Wiedener has said...sure his motives may be suspect...but that doesn't mean there isn't an element of truth to what he says

Originally Posted by trevsfriendbruce

That refutes your suspicion I think...if they are USD they have been repatriated...they might be doing it because the dollar is down and they think it is going to rise...they might also be trying to shore up their share prices or...

I was speculating - further, US companies always provide the value of their 'hoard' in US dollars.

AAPL, for example, has nearly $80 billion in cash reserves, which they list as "US $" despite 60% of that money being held abroad.

Originally Posted by trevsfriendbruce

as you say...they are going to need cash in the future...which is what Wiedener has said...sure his motives may be suspect...but that doesn't mean there isn't an element of truth to what he says

Everyone is going to need the cash in the future - which is why it is wise for companies to ignore the cries of investors to pay out dividends, or return the money to shareholders - this invariably leads to a guaranteed economic downfall.