10% of Trump tax cuts were productive

And guess where the rest went? Via FTAlphaville:

The wave of money repatriated back by US companies, following Trump’s tax reforms implemented at the start of the year, is slowing to a ripple, according to new estimates from JPMorgan’s Flows and Liquidity team:

Assuming the deceleration pattern between Q1 and Q2 continues over the coming quarters, it looks like that the current repatriation episode will cumulatively reach an amount of between 20%-25% of the stock of offshore cash or between $400bn-$500bn. And given that 16% or $330bn of repatriation took place already in H1, this assessment implies a significant slowing of the repatriation flow into the second half of the year.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.