> At present the rest of the world generates a surplus of real stuff and supplies it to Net deficit countries in return for mere promises. I view the UK/US as

> At present the rest of the world generates a surplus of real stuff and supplies it to Net deficit countries in return for mere promises. I view the UK/US as exporters of property rights. An entry on the British land registry can confidently assure somebody of a home in 75 years in manner which nothing in the Chinese economy can. Those rights aren't perfect, subject to sanctions etc, but are generally still much stronger than what those investors have at home. A big chunk of the UK's trade deficit goes away if you count overseas purchases of London real estate as exports rather than investments. Which I think makes sense given the low yields, high taxes and concentrated buyer base.