Deutsche Bank Warns of US Capital War Threat

A new proposed US tax, Section 899, could trigger a global financial shift known as a ‘capital war’, according to Deutsche Bank analysts. This tax, which imposes higher rates on foreign individuals and businesses, poses concerns about transforming trade tensions into a full-blown conflict impacting global capital flow stability. The potential for increased taxation on US Treasury securities is expected to decrease their attractiveness to foreign investors, potentially leading to market volatility and influencing interest rates. ]