It would be amazing if a nation could get rid of its debt by printing and having no consequences... at some point the scheme blows up because it makes no sense to produce and sell to such a nation.
Depends on where the cash is and what the company is earning. Someone would gladly sell you an empty shell will $10 million cash abroad for $9.5 million or $9 million if that meant the money would enter the U.S. tax free.
It's not a problem, GTS. The deficit can be much smaller - disappear entirely, even - under debt-taking and printing. For instance, income taxes take off due to the bubble provided by the printing.
What matters is whether the economy "below" is sustainable once the printing and debt-taking ends or slows down.
(during the dotcom bubble the deficit - then much smaller - also disappeared completely for 1 year or so)
It can end in many different ways ... it can end with inflation and nominal prices and stock quotes going to the sky. It can end with a plunge...
I think what we'll see is, somewhere within the next couple of months, the market will take a quick plunge and the Fed, which was already starting (or thinking of starting) to taper instead turns around and prints more.
I don't think so. Most of it should be an effect coming from the debt-taking. Some of it might have to do with how foreign profits are accounted for - which is not clear.
PSalermo, if the overall level of earnings in the economy is inflated, it doesn't much matter if any company-specific ones don't seem to be. Even stuff that doesn't seem to be inflated, is, because demand even for seemingly impossible things like toilet paper could be lower.
The bubble is in that the overall level of earnings is, itself, a temporary bubble. In other words, the price is a bubble because the divisor (earnings) is at an unsustainable level due to debt expansion.
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
What matters is whether the economy "below" is sustainable once the printing and debt-taking ends or slows down.
(during the dotcom bubble the deficit - then much smaller - also disappeared completely for 1 year or so)
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
I think what we'll see is, somewhere within the next couple of months, the market will take a quick plunge and the Fed, which was already starting (or thinking of starting) to taper instead turns around and prints more.
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]
Where Is The Bubble? [View article]