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America is a net importer of capital. Money is cheap. The world pays America to be wasteful and spend. All of these problems will be "solved" when that reverses
by pishpash 9y ago
America is a net importer of capital. Money is cheap. The world pays America to be wasteful and spend. All of these problems will be "solved" when that reverses.
- spiderfarmer 9y agoThere will be rioting in the streets when that happens.
- pas 9y ago> America is a net importer of capital. How is that calculated? Do you happen to have sources/articles on this topic? I'd think that the larger economy eats the smaller (that is US money goes and makes profit in the smaller ones), but maybe it's a lot more complex than that.
- pishpash 9y agoYou may be confusing where profits can be made and who makes them vs. where capital is deployed. http://mjperry.blogspot.com/2010/10/trade-deficit-capital-inflow-bop-0.html http://mjperry.blogspot.com/2010/10/trade-deficit-capital-in... http://topforeignstocks.com/2009/06/13/the-top-net-capital-importers-and-exporters-of-capital-in-2008/ http://topforeignstocks.com/2009/06/13/the-top-net-capital-i... It has to do with the balance of payments. US entities do invest and make profits overseas. However, investments into the US (including loans to the US Treasury, for example) happen in larger amounts than investments from the US into other countries. Regardless of where profits are made or who made them, people prefer to put their money in the US.