Wegelin private bank to pull out of US - swissinfo
Newsworthy for a day, if that, but I think an interesting point in the debate on America's changing global position. I hesitate to say decline, because I don't see that. But I do see an America more likely to be pulled back into the pursuing peloton.
The bank itself is clearly hacked off at the tax policies of the US, which assert the right to pursue across the globe. Perhaps its own clients are mostly Middle East and Asian based, and so they are a little defensive about their clientele, who do not benefit from tax treaties.
But I think that the quickly defensive and patriotic comments left on the site in response to this small press release fail to seriously engage in the issue of American investment, which is a valid point of debate, and one which larger non-American institutions perhaps privately say but hesitate to publicise.
- US Debt: the declared public debt is at 70% GDP, to go over 100% over next few years.
- Frankfurt Institute in Nov 08 reckon that a correctly accounted debt would be at 600%
- The Public authorities themselves are the most important creditors of themselves - 40% of US state debt is in intragovernmental holdings - is this now a Ponzi scheme? Look at the struggles of the state of California
- Foreign holders have the next 28% - but how long will they be prepared to finance this? They were net sellers of debt in mar and apr 09
- Every dollar of growth comes with about 4 dollars of debt - Asia presents the investment growth opportunities for the next 40 years
Parts of America will continue to lead the world in innovation and growth, because of the unique cradle of its society and institutions. But the braking parts of America are in danger of bringing the whole country back into the pack.
(check also
Economics focus: Damage assessment | The Economist)
Newsworthy for a day, if that, but I think an interesting point in the debate on America's changing global position. I hesitate to say decline, because I don't see that. But I do see an America more likely to be pulled back into the pursuing peloton.
The bank itself is clearly hacked off at the tax policies of the US, which assert the right to pursue across the globe. Perhaps its own clients are mostly Middle East and Asian based, and so they are a little defensive about their clientele, who do not benefit from tax treaties.
But I think that the quickly defensive and patriotic comments left on the site in response to this small press release fail to seriously engage in the issue of American investment, which is a valid point of debate, and one which larger non-American institutions perhaps privately say but hesitate to publicise.
- US Debt: the declared public debt is at 70% GDP, to go over 100% over next few years.
- Frankfurt Institute in Nov 08 reckon that a correctly accounted debt would be at 600%
- The Public authorities themselves are the most important creditors of themselves - 40% of US state debt is in intragovernmental holdings - is this now a Ponzi scheme? Look at the struggles of the state of California
- Foreign holders have the next 28% - but how long will they be prepared to finance this? They were net sellers of debt in mar and apr 09
- Every dollar of growth comes with about 4 dollars of debt - Asia presents the investment growth opportunities for the next 40 years
Parts of America will continue to lead the world in innovation and growth, because of the unique cradle of its society and institutions. But the braking parts of America are in danger of bringing the whole country back into the pack.
(check also
Economics focus: Damage assessment | The Economist)
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