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Japan has agreed to invest $1T in America

Probably wants to put money into dollar-denominated assets and make investments at today's exchange rates before the Yen ultimately collapses. Smart strategy.

What is the trade deficit impact from foreign investment?

Per Grok:

“The impact of foreign investment on the U.S. trade deficit is multifaceted and involves several economic dynamics:

1. **Capital Inflows and Trade Deficits**:
- Foreign investment, or capital inflows, into the U.S. can finance the trade deficit. When foreign entities invest in U.S. assets (like government bonds, corporate stocks, or real estate), they exchange their currency for U.S. dollars. This demand for dollars can help finance the trade deficit, as the U.S. can then use these dollars to pay for imported goods and services. Posts on X discuss how foreign investment is essentially foreign savings, closing the gap between U.S. domestic investment and savings.

2. **Exchange Rate Effects**:
- Increased foreign investment can lead to a stronger U.S. dollar if there is high demand for dollar-denominated assets. A stronger dollar makes U.S. exports more expensive and imports cheaper, potentially widening the trade deficit. Information available on the web suggests that the U.S. dollar's reserve currency status and the global demand for U.S. Treasuries contribute significantly to this dynamic.

3. **Economic Growth and Consumption**:
- Foreign investment can stimulate economic growth by providing capital for investment in businesses, infrastructure, or technology. This can lead to higher consumer and business spending on imported goods, thereby increasing the trade deficit. However, this also means more jobs and higher productivity, which can benefit the economy in other ways.

4. **Interest Rates and Savings**:
- There's a debate on whether the U.S. trade deficit is due to low domestic savings or a result of global capital flows. Some argue that the U.S. attracts foreign capital because it offers a safe haven for investment, not because of domestic savings rates. This perspective implies that the trade deficit might be more a consequence of global investment patterns than domestic saving behaviors.

5. **Long-term Implications**:
- Persistent trade deficits funded by foreign investment can lead to higher foreign ownership of U.S. assets, potentially affecting national economic sovereignty or strategic sectors. There's also the concern of accumulating debt if these investments are not used productively.

6. **Policy Implications**:
- Policies aimed at reducing trade deficits might focus on encouraging domestic savings or adjusting trade policies, but as per various analyses, directly reducing trade deficits through trade policy might not be as effective without addressing the underlying capital account dynamics.

In summary, foreign investment impacts the U.S. trade deficit by providing the capital necessary to finance it, influencing the dollar's value, affecting domestic consumption, and shaping economic policy debates. While it can lead to economic growth and job creation, it also carries implications for national debt and economic independence.”
 
I was told that everyone hates us and would be turning away from future deallings with us.
Who told you that? When has “everyone” turned their back on money abs wealth? And let’s be honest, contrary to the bullshit some politicians are throwing, America is the richest, the wealthiest and with the brightest future if any nation in this earth. Not that things are “perfect” here…. They are just that much better than other places in this earth. Trump and MAGAs have spent the greater part of the last 4 years bemoaning America for “failures” that frankly were non-existent.
 
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