The trade imbalance

The Fed does watches currencies and their effect on our economy. The trade imbalance is surely an issue as we move more and more toward a service and information economy and the addition of China in world markets will probably precipitate further imbalances.

Regarding the confidence of foreign investors, I don’t know of another country which instills more confidence. Sure low rates and a stock market plunge have seen a flight of capital, but with modern capital mobility, I doubt they are gone for long.

So if you don’t invest in the US, where then?

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