The Collapse of the American Empire, page-1613

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diligent

25,520 Posts.

7

02/01/22

16:30

Post #: 58606559
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Originally posted by moorookamick: ↑

I guess there's a difference between theories/forecasts & the historical & real time data;
the former being speculative & the latter being actual.

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)
China passed out the USA in GDP (PPP) in 2014-15 a year after Xi announced his BRI ,.
The combination of these two events panicked the US Administration and in typical
US style, it set about stymieing/sabotaging China economically rather than pulling out
its finger and re-inventing America so that it can compete with China.

Trump had a half assed attempt to reform US manufacturing, stem imports and
stimulate exports but of course it soon became evident who actually rules America
because the Industrial/Military Complex just put out their hands for lower taxes
and a bigger military spend.

Of course Trump thought that a 0% tax haircut would encourage US corporations
to patriate profits but of course there is little difference in avoiding 30% tax as there
is in avoiding 20% tax and that's why this Trump strategy was a sizzler

A few corporations repatriated a token amount of manufacturing but the vast
majority simply shifted production from China to Vietnam & other low tax/low
labour cost jurisdictions while some like Musk opened up new manufacturing plants
in China.And of course deposits in Tax Havens contnued to grow.

The US was built by its corporations but since Regan, these Corporations became Multinationals
milking Uncle Sam for all he had & bunging the proceeds in offshore tax havens .

This offshoring of profits in taxhavens (some $36 Trillion according to the IMF of which
the lions share is American) has starved the US of tax and investment capital , so much
so that since the GFC, the American Government has had to resort to printing Greenbacks via its FED
to keep the country from going broke .(Hence its current Soverign Debt of $30 Trillion)

In a wierd way, however, the stashing of cash in tax havens offshore has prevented the FED from
sinking the USD by overprinting like Zimbabwe etc.

"Corporations aren’t the only beneficiaries. Individuals have stashed $8.7 trillion in tax havens, estimates **riel Zucman (2017), an economist at the University of California at Berkeley. Economist and lawyer James S. Henry’s (2016) more comprehensive estimates yield an astonishing total of up to $36 trillion." ( Source: The IMF)

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I sometimes wonder how really safe these so called 'tax havens' really are?

And, on what scientific basis does a person logically arrive at this conclusion which, if at a latter point in time is proven to be incorrect, can have a financially disastrous effect on that person's financial well being!
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