Global Corporate Cash Piles Exceed $15 Trillion
▻http://www.telesurtv.net/english/opinion/Global-Corporate-Cash-Piles-Exceed-15-Trillion-20150921-0028.html
Various studies and reports show that AE [advanced economies] corporations continue to pile up cash on their balance sheets.
According to a June report by the Bank of Japan, in Japan corporate cash hoarding now totals US$2.4 trillion. And somehow that was accumulated despite Japan having experienced four recessions since the 2008-09.
How about Europe? There corporate cash has risen 40 percent since 2008, to US$1.1 trillion, despite a double dip recession of 18 months in 2011-13 that was worse than 2008-09 and despite a stagnating Eurozone since 2013.
And the United States? Moody’s Analytics research estimates corporate cash for non-financial corporations at US$1.73 trillion today. Add another US$1 trillion for reserves held by banks. Then there’s the estimate by Moody’s that U.S. multinational corporations continue to hoard another minimum another US$1.1 trillion in their offshore subsidiaries, which they’ve parked there in order to avoid paying U.S. taxes on that amount. That’s a combined US$3.8 trillion cash pile for U.S. corporations alone.
In total, just the AE economies of the United States, Eurozone, and Japan are therefore sitting on a minimum of US$7.3 trillion in cash today!