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Capital flight makes no difference. Argentina's government has defaulted 9 times, capital has always come back and always will. The reason why people invest in

Capital flight makes no difference. Argentina's government has defaulted 9 times, capital has always come back and always will. The reason why people invest in the US is: legal system, the educated workforce, etc. I think people get it completely twisted about why investors invest (ironically, this notion of a "capitalist's strike" is just pure bait from right-wing people who don't understand how investing works). There is always an excess of capital because economic advantage is not evenly distributed, you are always chasing the limited number of good opportunities. And there is no competitive advantage in money (in theory, not totally true in practice): $100 from X is as good as $100 from Y. If you believe capital flight exists, you believe that humans don't like money. The advantage the US has is strengthening and compounding. There is nowhere like it in the world, I don't think anyone is even close.

Out_of_Characte 4y ago
>Capital flight makes no difference. Argentina's government has defaulted 9 times, capital has always come back and always will. How does Argentina prove your point that capital flight makes no difference? Defaulting on loans doesn't even represent capital flight. It just means people who have already invested will not get their return for a very long time, if at all. >If you believe capital flight exists, you believe that humans don't like money. >If I believe X then I must believe Y. Not really, If I had a lot of Turkish Lira and lived in turkey then I would call moving my ass before the collapse capital flight. And I would have been better off doing so. Same with Venezuela and many other countries that clearly weren't too big to fail.