In other words, we sell off $800 billion of our country each year.
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Replying to @HbdNrx
Not quite, more complicated than that. But yes, we've a current account deficit in addition to trade deficithttp://www.tradingeconomics.com/united-states/current-account …
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Replying to @InaneImperium @HbdNrx
(In other words, we're not like UK or Holland w/ large historical trade deficit due to huge foreign investment income)
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Replying to @InaneImperium
what am I missing here? Dollars out, goods in (net); dollars mostly come back in the form of foreign purchases of US assets
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Replying to @HbdNrx
The main pieces are net trade, net investment income, net new investment, and net borrowing
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Replying to @InaneImperium
ok, I'm missing in particular the US investment abroad component, which may be a net positive (ie increasing US ownership
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Replying to @HbdNrx
Net investment (I think) is negative. I.e., people are investing in US, buying US assets, more than reverse.
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Replying to @InaneImperium
I mean that total US ownership of foreign assets may be increasing at the same time as foreign ownership of US assets is incr
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Replying to @HbdNrx
Yes, exactly. That's right. Only the net difference shows up as (part of) the current account.
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Replying to @InaneImperium
so when we talk about the country being sold off (on net),is the current account deficit a more accurate measure of that than
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the trade deficit?
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