Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘USA’

Populist Plutocracy and the Future of America

Posted by hkarner - 12. Dezember 2017

Nouriel Roubini, a professor at NYU’s Stern School of Business and CEO of Roubini Macro Associates, was Senior Economist for International Affairs in the White House’s Council of Economic Advisers during the Clinton Administration. He has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank.

In the first year of his presidency, Donald Trump has consistently sold out the blue-collar, socially conservative whites who brought him to power, while pursuing policies to enrich his fellow plutocrats. Sooner or later, Trump’s core supporters will wake up to this fact, so it is worth asking how far he might go to keep them on his side.

NEW YORK – Donald Trump won the US presidency with the backing of working-class and socially conservative white voters on a populist platform of economic nationalism. Trump rejected the Republican Party’s traditional pro-business, pro-trade agenda, and, like Bernie Sanders on the left, appealed to Americans who have been harmed by disruptive technologies and “globalist” policies promoting free trade and migration. Den Rest des Beitrags lesen »

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Market failure: China takes on the EU at the WTO

Posted by hkarner - 9. Dezember 2017

Date: 08-12-2017
Source: The Economist

Both the EU and America are loth to weaken their defences against Chinese dumping

NOT all trade tension is made in America. China is suing the European Union at the World Trade Organisation (WTO). Hearings began this week. China thinks it deserves treatment as a “market economy”. The EU, supported by America, disagrees. As they lock horns, each side sees the other as breaking a promise.

China’s entry into the WTO in 2001 was part of a grand bargain. In return for market access, it promised economic reform. The deal laid out unusually strict terms. Any members’ exports can face anti-dumping duties if sold too cheap. But China’s accession agreement allowed others to erect stronger defences, and assume that it was a non-market economy when calculating the “fair” duty—using third-country prices for comparison. In practice this meant higher tariffs. Den Rest des Beitrags lesen »

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America’s Broken System

Posted by hkarner - 8. Dezember 2017

J. Bradford DeLong is Professor of Economics at the University of California at Berkeley and a research associate at the National Bureau of Economic Research. He was Deputy Assistant US Treasury Secretary during the Clinton Administration, where he was heavily involved in budget and trade negotiations. His role in designing the bailout of Mexico during the 1994 peso crisis placed him at the forefront of Latin America’s transformation into a region of open economies, and cemented his stature as a leading voice in economic-policy debates.

The tax-reform bill that US Republicans are attempting to implement is economically indefensible and blatantly unfair. But the US has a much deeper problem: the Anglo-Saxon model of representative government is in serious trouble, and nobody seems to know how to fix it.

BERKELEY – The tax bill that US Republicans have doggedly pushed through Congress is not as big a deal as many are portraying it to be. It is medium-size news. The big news – the much more weighty and ominous news – lies elsewhere.

Of course, medium-size is not nothing. If the tax bill does clear its final hurdle – a conference committee must reconcile the Senate-approved bill with that of the House of Representatives – and become law, it will complicate the tax system considerably, as it opens many loopholes. It won’t have any impact on economic growth – positive or negative – but it would have an impact on the government’s finances, causing revenues to decline by the equivalent of about 1% of national income. Den Rest des Beitrags lesen »

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Alibaba’s Jack Ma Tells U.S. Companies to Stop Whining About China

Posted by hkarner - 7. Dezember 2017

Date: 06-12-2017
Source: The Wall Street Journal

Magnate tells firms to ‘follow the rules’ and plan for the long term

Alibaba Group Executive Chairman Jack Ma speaks during the World Internet Conference in Wuzhen, China, Dec. 3.

WUZHEN, China—Amid rumblings of a U.S.-China trade conflict, Alibaba Group Holding Ltd. founder Jack Ma defended China against complaints that it creates barriers against outside competitors.

Companies that struggle here may simply not be taking the right approach, Mr. Ma said Tuesday at a prominent internet forum.

“I gave advice to Jeff Bezos 10 years ago,” Mr. Ma said, referring to Amazon.com Inc.’s chief executive. “I said: ‘Please send people with entrepreneurial spirit, not professional management. Because wherever you go, doing business in another country is very difficult.’”

‘When you determine to come, prepare for it. Follow the rules and laws and spend 10 years.’ —Jack Ma, Alibaba

An Amazon spokesman had no immediate response to the comments from Mr. Ma, whose online shopping portals compete against the Seattle-based company. Amazon dominates e-commerce in the U.S., but is the underdog in China. Den Rest des Beitrags lesen »

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Trump’s Willing Accomplices

Posted by hkarner - 6. Dezember 2017

Ian Buruma, Editor of The New York Review of Books, is the author of numerous books, including Murder in Amsterdam: The Death of Theo Van Gogh and the Limits of Tolerance and Year Zero: A History of 1945.

Many leading Republican politicians who stand by Donald Trump, and even the multi-billionaires who fund their campaigns, may have private misgivings about the US president, just as the industrialists of Germany’s Herrenklub probably once despised Hitler. But with only a few exceptions, they continue to support him – and for similar reasons.

NEW YORK – On February 20, 1933, a secret meeting took place in Hermann Göring’s palatial residence in Berlin. More than 20 of Germany’s top industrialists, including Gustav Krupp, Friedrich Flick, and Fritz von Opel, listened to a speech by Hitler, who promised them that their assets would be safe under his rule. So they agreed to support the Nazi Party with over two million Reichsmark, an enormous sum that was almost enough to pay for the upcoming election campaign.

Few of these men, if any, were convinced Nazis. They were members of the German Herrenklub (Gentlemen’s Club), which was very conservative but not National Socialist. But, acting from narrow self-interest, they became Hitler’s enablers. Den Rest des Beitrags lesen »

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Renovating the Fed

Posted by hkarner - 3. Dezember 2017

– Stan Druckenmiller (hat tip Steve Blumenthal)

The Federal Reserve will soon have a new chair, assuming the Senate confirms Jerome Powell as Janet Yellen’s successor. Yellen’s departure will reduce the nominally seven-member Board of Governors to only three. That may or may not be a good thing, depending on some other events.

In fact, in talking with some of my Fed-watching friends, it appears the world’s most important central bank is about to experience some potentially profound changes – not just in personnel but more importantly in the kind of people who lead it. Those changes could, in turn, have some serious economic impacts; so it’s worth taking a deeper look.

Nonmusical Chairs Den Rest des Beitrags lesen »

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The US Is Exporting Obesity

Posted by hkarner - 3. Dezember 2017

Kenneth Rogoff, Professor of Economics and Public Policy at Harvard University and recipient of the 2011 Deutsche Bank Prize in Financial Economics, was the chief economist of the International Monetary Fund from 2001 to 2003. The co-author of This Time is Different: Eight Centuries of Financial Folly, his new book, The Curse of Cash, was released in August 2016.

Left unchecked, rapidly rising obesity rates could slow or even reverse the dramatic gains in health and life expectancy that much of the world has enjoyed over the past few decades. And by forcing its food culture on countries like Mexico and Canada, the US is making the problem worse.

CAMBRIDGE – As US President Donald Trump’s administration throws sharp elbows in trade negotiations and systematically rescinds regulations introduced by President Barack Obama, one casualty is likely to be efforts to fight the global obesity epidemic. Left unchecked, rapidly rising obesity rates could slow or even reverse the dramatic gains in health and life expectancy that much of the world has enjoyed over the past few decades. And by forcing its food culture on countries like Mexico and Canada, the United States is making the problem worse. Den Rest des Beitrags lesen »

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Paul Achleitner über Brexit: „New York wird größter Nutznießer“

Posted by hkarner - 29. November 2017

Interview Andreas Schnauder, 29. November 2017, 08:16 derstandard.at

Der Aufsichtsratschef der Deutschen Bank über die wachsende US-Dominanz

Er gilt als Architekt der Neuordnung am deutschen Finanzsektor und als Troubleshooter bei der Deutschen Bank: Seit Paul Achleitner im Mai 2012 den Aufsichtsratsvorsitz bei Deutschlands größtem Institut übernommen hat, kam die Bank nicht aus den Schlagzeilen heraus. Nun verspürt der gebürtige Österreicher wieder Rückenwind, warnt aber vor der wachsenden Dominanz der US-Rivalen. Im Unterschied zum Internetsektor, in dem „kein Europäer am Tisch sitzt“, solle die EU die Eigenständigkeit in der Finanzbranche wahren. Allerdings: Beim Brexit sieht Achleitner New York als größten Profiteur, wenn Banken aus London abziehen.

STANDARD: Europas Banken wurden in den letzten Jahren von US-Instituten in Sachen Ertragskraft und Börsenwert überflügelt. Wird diese Entwicklung zu einer Konsolidierung auf dem Alten Kontinent führen?

Achleitner: Man muss das im Gesamtkontext sehen. Alle europäischen Unternehmen stehen im starken Wettbewerb zur amerikanischen und insbesondere auch zur chinesischen Konkurrenz. Die große Herausforderung besteht nun darin, wie die Unternehmen mit der digitalen Revolution umgehen. Und ich meine, dass Europa hier möglicherweise sogar einen Vorteil hat. Den Rest des Beitrags lesen »

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Cutting US Corporate Tax Is Worth the Cost

Posted by hkarner - 28. November 2017

Martin Feldstein, Professor of Economics at Harvard University and President Emeritus of the National Bureau of Economic Research, chaired President Ronald Reagan’s Council of Economic Advisers from 1982 to 1984. In 2006, he was appointed to President Bush’s Foreign Intelligence Advisory Board, and, in 2009, was appointed to President Obama’s Economic Recovery Advisory Board. Currently, he is on the board of directors of the Council on Foreign Relations, the Trilateral Commission, and the Group of 30, a non-profit, international body that seeks greater understanding of global economic issues.

One of the main criticisms leveled at congressional Republicans‘ proposal to cut corporate taxes is that a higher budget deficit would amount to an undesirable fiscal stimulus. But with monetary policy turning contractionary, and most experts predicting a US recession in the next five years, stimulus should be welcomed.
CAMBRIDGE – The United States Congress is close to enacting a major tax reform. The plan’s most important provision reduces the corporate tax rate from 35% to 20% – from the highest among all OECD countries to one of the lowest – and allows US companies to repatriate the profits of their foreign subsidiaries without paying additional US taxes. Opponents of the legislation point to the resulting increase in the federal budget deficit, which will add $1.5 trillion to the government debt over the next ten years.

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George Soros’s $18 Billion Tax Shelter

Posted by hkarner - 26. November 2017

Date: 25-11-2017
Source: The Wall Street Journal

The wealthy have tucked billions into private nonprofits—where the IRS can’t touch it.

Congress is still scrambling to find ways to pay for its tax cut, so perhaps it should pay closer attention to last month’s news that George Soros had transferred $18 billion of his fortune to a private charity that he controls. There it will be sheltered from the Internal Revenue Service forever. This may be the single biggest tax dodge in U.S. history, yet no one on the right or left seems to have raised an eyebrow.

True tax reform is predicated on the principle that all income should be taxed at a low rate once, and only once. But much of the wealth that Mr. Soros spent years moving into his Open Society Foundations will never be taxed. A gift of billions of dollars of appreciated stock escapes any capital gains tax, and the estate tax as well. So Mr. Soros can donate appreciated stock that Open Society Foundations can liquidate without the government ever taking a cut.

There’s more. When a person donates untaxed, appreciated assets to a private foundation, he may also deduct up to 20% of its market value on his personal return, carrying forward this deduction for five years. This double write-off may be the sweetest deal in the tax code. Den Rest des Beitrags lesen »

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