EconWatch.com > Bad News on the International Finance Numbers

[Brad DeLong's Semi-Daily Journal] analysis / Comment - Discrepancies in US accounts hide black hole: By Daniel Gros: The global financial system seems to have a black hole at its centre. Over the last two decades, US residents have sold a total of about $5,500bn worth of IOUs to foreigners, yet the officially recorded net investment position of the US has deteriorated only by a little more than half of this amount ($2,800bn).

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[Delong.typepad.com] Brad DeLong's Semi-Daily Journal: If the fall in participation is a supply-side phenomenon, we should have moved up and to the left along a demand curve, and should see falling employment-to-population and participation rates coupled with rising real wage and salary incomes. If If the fall in participation is a demand-side phenomenon, we should have moved down and to the left along a supply curve, and should see falling employment-to-population and participation rates coupled with falling real wage and salary incomes.

http://www.rgemonitor.com [Rgemonitor.com] RGE - Nouriel Roubini's Blog Archive 2006-02: So, for its own financing the US is effectively captive to the political decisions of potentially unfriendly states, an indeed worrisome "balance of financial terror". The war on terror and the war in Iraq are being financed by China, Russia, Saudi Arabia and a bunch of other unfriendly or unstable countries (Nigeria, Venezuela, Iraq, etc.). And all these countries and their private and public investors, whether friendly or unfriendly, now increasingly want to buy US equities rather than useless bonds.

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