This law may impact foreign investing in this country. An important tenet of foreign investing is the ability to move capital when required. Foreign individuals and corporations will not invest if they cannot access capital when necessary. The law allows exceptions so political connections will matter, another negative aspect of crony capitalism. I also think that foreign governments may retaliate by withholding US investor money. In this bill and other proposed bills and existing legislation, I see a potential for an ugly trade war.
When i see a bill like this i inevitably ask myself questions. In this case the first would be,who had input? This seems like a mistake with the potential for as we both said,a trade war so who decided the benefits outweighed the negatives? My second question comes off of the first and is,why do this if it was done with malice aforethought? The only conclusion i come up with is,assuming this was done knowing the potential fallout,is that our governments finances are far worse off than we know. Far worse than the rating agencies,our trade partners and those supporting us by buying our debt know as well.