Repatriating US Corporation dollars from abroad. (UPDATE)

There has been a lot of recent talk about repatriating Corporate US Dollar holdings from abroad to help US Corporations stimulate the US economy. There dollars are abroad because Corporations do not want to pay higher US Taxes. One thing to consider here is that anything which pulls money out of country banks abroad will have a negative affect on those countries and especially its banks, as banks in Europe do not have enough capital to weather the debt crisis there, as they are financing debt of Greece and Ireland and now Italy and possibly Spain. So repatriating US Corp dollars from Europe could have a very big impact on world banks and countries. This point has not been discussed at all in the media. There are over $1 Trillion dollars in banks abroad held on behalf of US Corporations.

Every action has an equal and opposite reaction!

UPDATE: 7:50am PST

It has already begun as this story unfolds. Venezuelan President Hugo Chavez ordered the central bank to repatriate $11 billion of gold reserves held in developed nations’ institutions such as the Bank of England as prices for the metal rise to a record.

Venezuela, which holds 211 tons of its 365 tons of gold reserves in U.S., European, Canadian and Swiss banks, will progressively return the bars to its central bank’s vault, Chavez said yesterday. JPMorgan Chase & Co. (JPM), Barclays Plc (BARC), and Standard Chartered Plc (STAN) also hold Venezuelan gold, he said.

“We’ve held 99 tons of gold at the Bank of England since 1980. I agree with bringing that home,” Chavez said yesterday on state television. “It’s a healthy decision.”

Chavez loses Constitutional vote but gains some respect

Many have argued that the Constitutional elections in Venezuela were going to be rigged to give Chavaz his victory in the election to stand indefinitely for re-election. Well, he lost the election by a very narrow margin, 51% to 49%. For all the negativity that has gone on between him and President Bush over the past 7 years, one must respect Chavez for his respect of free elections in his country. It could have been otherwise. It could have even been violent. Thank God it wasn't. I hope we use this defeat as an opportunity to heal some differences with him but more importantly with the Venezuelan people, who are a wonderful, passionate people, who take their democracy very seriously.

You may have lost this election and madate from your people, President Chavez, but you have gained my respect and others as well.