Monday, August 07, 2006

USA running a trade surplus?

The Skeptical Optimist:
"In other words, our assets abroad must be worth a lot more than “the books” would indicate, because there aren’t many other ways to explain why we are earning (net) $30 billion today on foreign direct investment, instead of paying out (net) $210 billion that the “books” would suggest should be the case. For a good illustration of that key point, read the Euro Disney example in the paper.

We’re running a trade surplus"
Interesting thesis.

No comments: