The $5 Trillion Stash: U.S. Corporations' Money Hoard Bigger Than GDP of Germany

[Beet]

http://www.theatlantic.com/business/archive/2012/07/the-5-trillion-stash-us-corporations-money-hoard-is-bigger-than-the-gdp-of-germany/260006/#

Yeah, corporate America is really suffering, that's the problem... not quite.

[opebo]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

[Torie]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

Then the cash horde earns more interest to keep up with ensuing inflation opebo, or the corps switch to another currency. Try again.

[Lief 🗽]

Just implement confiscatory tax rates on this kind of thing. Problem solved.

[Landslide Lyndon]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

Then the cash horde earns more interest to keep up with ensuing inflation opebo, or the corps switch to another currency. Try again.

You mean just like what happened after QE1 and QE2?

[opebo]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

Then the cash horde earns more interest to keep up with ensuing inflation opebo, or the corps switch to another currency. Try again.

Come on buddy, you know if the State printed and spent they would create such economic growth that the corporations would have incentive to invest.  Of course my personal preference would involve the guillotine for all involved in such crimes as this, but that's probably too much to hope for.

[Torie]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

Then the cash horde earns more interest to keep up with ensuing inflation opebo, or the corps switch to another currency. Try again.

Come on buddy, you know if the State printed and spent they would create such economic growth that the corporations would have incentive to invest.  Of course my personal preference would involve the guillotine for all involved in such crimes as this, but that's probably too much to hope for.

Ever heard of stagflation?

[Torie]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

Then the cash horde earns more interest to keep up with ensuing inflation opebo, or the corps switch to another currency. Try again.

You mean just like what happened after QE1 and QE2?

No px, as I have explained before, more than once, "printing" money to replace money "destroyed" by the diminution in fractionalized banking (less bank lending, which lending if made increases the money supply) is not putting the total money supply on steroids, which is what opebo I assumed was proposing, albeit I think inaccurately, to induce corporations to jettison their cash hordes.

[phk]

Stocks and flows, stocks and flows.

[Yelnoc]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

Then the cash horde earns more interest to keep up with ensuing inflation opebo, or the corps switch to another currency. Try again.

Come on buddy, you know if the State printed and spent they would create such economic growth that the corporations would have incentive to invest.  Of course my personal preference would involve the guillotine for all involved in such crimes as this, but that's probably too much to hope for.

Even if the cash supply exceeds the country's GDP?

[phk]

This needs to be diluted through printing - the only way to get it out from under the mattress is to print and spend till they have no bloody choice.

Then the cash horde earns more interest to keep up with ensuing inflation opebo, or the corps switch to another currency. Try again.

Come on buddy, you know if the State printed and spent they would create such economic growth that the corporations would have incentive to invest.  Of course my personal preference would involve the guillotine for all involved in such crimes as this, but that's probably too much to hope for.

Even if the cash supply exceeds the country's GDP?

Cash and GDP are not comparable concepts. One is a flow variable and the other is a stock variable.

[So rightwing that I broke the Political Compass!]

Where are they storing this money? I assume in banks- in which case, what's the problem? Banks don't just let money sit there, they invest it/loan it out.

[Torie]

Where are they storing this money? I assume in banks- in which case, what's the problem? Banks don't just let money sit there, they invest it/loan it out.

Except when they don't.

[Beet]

Where are they storing this money? I assume in banks- in which case, what's the problem? Banks don't just let money sit there, they invest it/loan it out.

Most of the money is being stored overseas. That's supposedly the difference between the Fed Flow of Funds Report and the IRS.

You must be logged in to read this quote.

The "stag" in stagflation comes from the 1973 and 1979 oil crises, which were essentially supply shocks and have no bearing to any debates today. Everyone agrees that negative supply shocks are bad.

[t_host1]

Where are they storing this money? I assume in banks- in which case, what's the problem? Banks don't just let money sit there, they invest it/loan it out.

Except when they don't.

[Torie]s’ “Except when they don’t” – lend (loan), because, why, when the bank can buy (invest) much easier. Last week, it might have been the previous, one of the banking geniuses for merging investment and traditional banking together says it is time to decuple the two. Rape in broad daylight has reached its limit is my take on it. The current Fed and Congress are too late to realize the consequences for this subsidized preference for they have extinguished the very thing that makes them whole – commerce.

 Corporation’s hording their cash will unwind once they can get something for it. Besides, why, disrupt what’s working for them, now. Of course they’ll have the advantages, what’s new. The key is to be around long enough with something worthy of the sell when and if the buy/spend happens. Some say that politics (policies) are of what we are, it’s just understanding them we are told, is, the problem.
 Wasn't the original federal and state bank charters intent, "too" commiserate (for a fee) the trades of currency, not capitalize on it too its current path of extinction. 

[So rightwing that I broke the Political Compass!]

Where are they storing this money? I assume in banks- in which case, what's the problem? Banks don't just let money sit there, they invest it/loan it out.

Except when they don't.

The banks you mean? So long as their is a viable place to direct the money that is more profitable then simply letting the money sit in their vaults, the banks will direct the money there. During a collapse(ala late 2008), sure they might sit on their cash. But not now when theirs a significant opportunity cost of leaving money inert in their vaults.

[© tweed]

Just implement confiscatory tax rates on this kind of thing. Problem solved.

and/or hire an organized crime outfit to get our money back.

[Lief 🗽]

Just implement confiscatory tax rates on this kind of thing. Problem solved.

and/or hire an organized crime outfit to get our money back.

There's an obnoxious libertarian joke here somewhere about how you just restated what I originally said that I'll call attention to before any of our beloved libertarian posters make it themselves.

[Torie]

Where are they storing this money? I assume in banks- in which case, what's the problem? Banks don't just let money sit there, they invest it/loan it out.

Except when they don't.

The banks you mean? So long as their is a viable place to direct the money that is more profitable then simply letting the money sit in their vaults, the banks will direct the money there. During a collapse(ala late 2008), sure they might sit on their cash. But not now when theirs a significant opportunity cost of leaving money inert in their vaults.

The banks make money with safe investments. They think they are having trouble finding credit worthy folks to lend to, so they don't lend for more risky ventures, even though if they were paid back with interest, they would make more money.

[opebo]

Ever heard of stagflation?

Yes.  That is not relevant to our discussion.