It is actually even more stupid. If Country A invests into Country B, then Country A has a trade surplus with Country B. However it also owns the investments, which means profits from the investment in Country B should be send back to Country A.
That is exactly what happened with the US. They invest a lot abroad after WW2 and are now living of the capital they own abroad.
It is actually even more stupid. If Country A invests into Country B, then Country A has a trade surplus with Country B. However it also owns the investments, which means profits from the investment in Country B should be send back to Country A.
That is exactly what happened with the US. They invest a lot abroad after WW2 and are now living of the capital they own abroad.
And even if someone makes a fortune abroad, they’ll still generally invest their profits in Wall Street.
And even if they don’t, their country will buy US dollars to keep in their reserves and buy oil.