Extract from an article in the Aus yesterday. The whole article...

Extract from an article in the Aus yesterday.
The whole article is worth a read.
Robert Gottliebsen ( I think that’s how you spell his name)


At the heart of the Trump plan is the fact that around $US2.6 trillion in American corporate profits are sitting in overseas bank accounts and Trump wants to bring the money home. Under current rules the 35 per cent US corporate tax isn’t payable until the money comes back to the United States.

At the moment to avoid the 35 per cent American tax rate being levied on the $US2.6 trillion, the money is usually kept in overseas tax havens.

Australian banks funded our unprecedented housing boom in part by borrowing offshore. If Trump’s vision is realised these vast American overseas corporate cash pools sums will be reduced, making it harder for countries like Australia to borrow overseas — especially given the banking royal commission. That means higher Australian rates. Conversely commodities will be stronger on the back of greater American economic activity, which will infect the whole world.

Side note.
A lot of enthusiasm for diversification into lithium on here.
I don’t like it. It’s the new “buzz” commodity. If Rio gets heavily involved plus all the other supply coming on... danger. What if the lofty forecasts do not come to fruition?
As Rc and I discussed some time ago. Gas and energy security should be the priority for Australia.
Ore and Gas. Fortescue Metals Gas. They already got the name FMG.
Leave the lithium to the bitcoin boys.
Cheers
The Tart.