Perhaps the US is really happy with their Government borrowing and country borrowing (twin deficits). Why? Perhaps they don´t exist.
If instead of valuing their investments abroad by how much they paid, but how much they are making (discount of future flows), it´s clear that the US is financing itself in a very cheap way and making huge profits abroad, probably based on its expertise and state of the art technology.
If we calculate the "deficits" with the above procedure, it happens that USA is a net creditor. Things are not always what we are told.
22/04/2010
