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>how does that cause it to appreciate? Seems like you missed a step. The thing that appreciates is the financial product that this money buys. >I'm curious as

>how does that cause it to appreciate? Seems like you missed a step. The thing that appreciates is the financial product that this money buys. >I'm curious as to what you even mean by "money goes offshore" Buying stock in an IPO in a multinational corporation based in Taxhavenlandia would be one example.

JackFr 5y ago
A financial product is ultimately a claim on real assets. That is their essence. Buying stock in an IPO in a multinational corporation based in Taxhavenlandia is capitalizing a presumably enterprise which will generate a positive return. I can understand that you might be concerned about capital leaving the country rather than being invested domestically, but I'm not sure you've been advocating capital controls.
- romwell 5y ago
  >A financial product is ultimately a claim on real assets. That is their essence. Laughs in pump and dump schemes
ImprobableTruth 5y ago
So you're just talking about buying stock/assets then? I don't know what other financial products you mean. >Buying stock in an IPO in a multinational corporation based in Taxhavenlandia would be one example. Even if this were the case, the only bad part would be evading taxes. To generate a profit, it still has to be an investment in a profitable venture, which increases overall economic productivity. (I also don't think there's any indication that this happens on a large scale, otherwise the stock index of any such Taxhavenlandia should show this)
- romwell 5y ago
  >Even if this were the case, the only bad part would be evading taxes. Ah, the little things. >To generate a profit, it still has to be an investment in a profitable venture Like Twitter? Which got a tax break recently, BTW >I also don't think there's any indication that this happens on a large scale Did you try looking? https://en.wikipedia.org/wiki/Panama_Papers https://en.wikipedia.org/wiki/Panama_Papers

JackFr 5y ago

A financial product is ultimately a claim on real assets. That is their essence. Buying stock in an IPO in a multinational corporation based in Taxhavenlandia is capitalizing a presumably enterprise which will generate a positive return. I can understand that you might be concerned about capital leaving the country rather than being invested domestically, but I'm not sure you've been advocating capital controls.

romwell 5y ago
>A financial product is ultimately a claim on real assets. That is their essence. Laughs in pump and dump schemes

ImprobableTruth 5y ago

So you're just talking about buying stock/assets then? I don't know what other financial products you mean. >Buying stock in an IPO in a multinational corporation based in Taxhavenlandia would be one example. Even if this were the case, the only bad part would be evading taxes. To generate a profit, it still has to be an investment in a profitable venture, which increases overall economic productivity. (I also don't think there's any indication that this happens on a large scale, otherwise the stock index of any such Taxhavenlandia should show this)

romwell 5y ago
>Even if this were the case, the only bad part would be evading taxes. Ah, the little things. >To generate a profit, it still has to be an investment in a profitable venture Like Twitter? Which got a tax break recently, BTW >I also don't think there's any indication that this happens on a large scale Did you try looking? https://en.wikipedia.org/wiki/Panama_Papers https://en.wikipedia.org/wiki/Panama_Papers