the U.S. Congress is debating a bill that allows U.S. multinationals overseas retained profits remitted back to the United States, to strengthen domestic investment and employment, and the tax rate from 30% to 5.5%. We need to be vigilant again sounded Assembly! The dollar's strength is in the final analysis the U.S. domestic economic and political needs. If the dollar reversal, commodities facing the systemic risk of a decline in the increase.
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We need to guard against the U.S. again sounded Assembly! The dollar's strength is in the final analysis the U.S. domestic economic and political needs. In 2008, the U.S. subprime mortgage outbreak, the U.S. dollar from happening again to return to save the domestic fire, resulting in global financial market turmoil, the stock market commodities slump, a stronger dollar. Since the financial crisis, the rebound in U.S. dollars per one basically meet the domestic demand for funds caused by U.S. dollar short-term reflux. The strong economic growth period in the U.S. dollar strength or weakening even more the U.S. government to ease the game. Today, the economic crisis in the United States world pie network information , the unemployment rate is still high, continuous two economic stimulus plan failed to make the U.S. economy is larger transit downturn in house prices become the constraints of the U.S. economic recovery. By the financial crisis, the smaller the impact of the euro area, the rapid recovery of the Chinese RMB increasing influence of a threat to the United States. Unfortunately, since the financial crisis, the United States has adopted a weaker dollar strategy and sustained capital injection to boost domestic manufacturing strategy to revive the export unable to do so. Therefore, a new round of stimulus by simple QE3 risks are too high to attract capital back into the low cost and timely boost the dollar.
2004, the United States also enacted "American Jobs Creation Act provides for one-year tax cut, that is, if the United States in the one-year period specified in overseas profit repatriation back home, this portion of the profits you can enjoy a rate of 5.25%, rather than 35% of the current tax rate. The bill has attracted the overseas profits of U.S. companies to massive reflux of their own, a total of $ 1800 to $ 210 billion in 2005. So was the return of funds against the U.S. dollar, the stock market and the impact of global commodity today in terms of whether the same day language is it?
Recently, the U.S. Congress is discussing a motion that allows U.S. multinationals overseas retained profits remitted back to the United States to enhance domestic investment and employment, and tax rate from 30% to 5.5%. One stone arouses thousand waves, the euro and financial markets crash, the U.S. dollar rose. The dollar rebound or reversal, suffered the torment of the debt crisis in Europe today, the euro zone and China's economic downturn, with great impact.
go back to the commodity markets continued to fall this year, rebounded to the mainstream variety of mid-MayWorld Steel Pipe , however, market volume and open interest is still in the doldrums, the second to the inventory has not yet completed. Once the U.S. dollar and then be reversed, then the commodities in the global interest rate channel lost the last straw, and commodity facing the systemic risk of a decline in the increase.
However, to date, the debt waves of resurgence in Europe, Greece, Spain and Italy, the 10-year bond yields reached around 5% -6% of its liabilities total amount of their gross domestic product (GDP), total about 150%, the euro area in exactly the money hungry period. As for China, the latest macroeconomic data show that in addition to inflation continues to remain strong, the growth rate of the manufacturing index and the purchasing managers' index, fixed assets, such as import and export data are in decline, SMEs continued to raise interest rates and mention the quasi- The degree of hunger of funds is evident from the monthly interest rate of up to 10% civil. Especially in real estate under the policy continues to suppress the capital chain tension, have to go overseas borrowing interest rates of 11-14%. In addition, the local up to 10 trillion of debt. At this point, the United States launched the third round of quantitative easing (QE3) hopeless case, increase the upper limit of the issuance of treasury bonds is the most urgent, however, the dollar continued to weaken, the world's largest debt held by the people of China and Japan holdings. The U.S. government launched the "at this time the American Jobs Creation Act of impact on the market will be much greater than in 2004 the impact!
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in 2004 the annual maximum dollar index 92.29, to the end of the year fell to 83.38 dollars in the end of the Fed's rate hike cycle failed to remain strong in the "American Jobs Creation Act. When the Dow Jones index throughout the year lower volatility, modest commodity copper and crude oil is still the continuation of the previous bull market trend. The fundamental reason lies in the economic growth of the world's major economies are relatively stable, this bill against the U.S. dollar reflux role is not very obvious. Compared to $ 1.9 trillion daily turnover in 2004 to attract the return of the total funds and the global currency markets, created by the demand for dollars is minimal.
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