Question

Net foreign direct investment has been a (significant) positive number for the US since the mid 1980’s. That represents more investment flowing into the US than out. Given that, one would normally conclude that the flow of net interest payments would be in the opposite direction – out instead of in. This is not the case.

Answer 1

Net foreign direct investment has been a (significant) positive number for the US since the mid 1980’s. That represents more investment flowing into the US than out. Given that, one would normally conclude that the flow of net interest payments would be in the opposite direction – out instead of in. This is not the case.

Question 1: Why might this be the case for the US?

Question 2: Will it continue during your lifetime?

Answer 2

1. It may be in debt to innovation hot-spots like silicone valley and others. Many companies invest in America because of great innovation and then outsource what ever product they need to produce.

2. Maybe, as China and other markets begin to flourish, it will bring the standard of living up and the call for innovation will be answered.