A Look at Foreign Investment Behaviour in the Latest Flow-of-Funds Data
Yesterday, the Federal Reserved released the latest edition of its publication "Z.1," "Flow of Funds Accounts of the United States." The most recent data are through the quarter ended 6/30/05.
Based on the numbers, the United States came out of the second quarter owing the rest of the world a stunning $5.2 trillion more than the rest of the world owed it. This marked an increase of more than $600 billion from a year earlier. Making these numbers even more horrific, though, is that as recently as roughly 20 years ago, the United States was still a net creditor nation. Continue to Gillespie Research for the balance of the essay: http://www.gillespieresearch.com/cgi-bin/s/article/id=666