FDI-Foreign Direct Investment


The USA was developed with huge investments of foreign capital. That largely ended with Armistice Day in WWI! Even the war effort in WWI was largely the result of British and French investments in the industry of  the USA. The USA contribution of 2M soldiers to the fight is ably described in John D. Eisenhower’s wonderful book about WWI mobilization for the war effort after War was declared in 1917 over three years after the breakout of  the War in August 1914.

An excellent article in CNS.NEWs summarizes the Chinese government’s investment in the USA! The future is NOW!

 

“At the end of March 2011, by which time the Chinese had dropped their Treasury bill holdings 97 percent from their peak, the publicly marketable segment of the U.S. national debt had almost doubled from August 2008, hitting $9.11 trillion. Of that $9.11 trillion, $5.8 trillion was in intermediate-term Treasury notes, $1.7 trillion was in short-term Treasury bills; $931.5 billion was in long-term Treasury bonds, and $640.7 billion was in TIPS.

Before the end of March 2012, the Treasury must redeem all of the $1.7 trillion in Treasury bills that were extant as of March 2011 and find new or old buyers who will continue to invest in U.S. debt. But, for now, the Chinese at least do not appear to be bullish customers of short-term U.S. debt.

Treasury bills carry lower interest rates than longer-term Treasury notes and bonds, but the longer term notes and bonds are exposed to a greater risk of losing their value to inflation. To the degree that the $1.7 trillion in short-term U.S. Treasury bills extant as of March must be converted into longer-term U.S. Treasury securities, the U.S. government will be forced to pay a higher annual interest rate on the national debt.

As of the close of business on Thursday, the total U.S. debt was $14.34 trillion, according to the Daily Treasury Statement. Of that, approximately $9.74 trillion was debt held by the public and approximately $4.61 trillion was “intragovernmental” debt.”

 

 

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One Response to FDI-Foreign Direct Investment

  1. Foreign direct investment and today global economic and political environment so affected by the brightest who fail blatantly in their policy making as a result of their own dysfunctions.

    How timely fr China to see a 9.0 earthquake rattle Japan’s infrastructure to the tune of one third of a trillin dollars. One third of a trillin dollars, wow!

    Japan’s need for foreign investment will see not only more assistance derived from Russia and South Korea presently Japan’s largest contributors of earthquake aid, but We must underatand that Japan holds sme $800 billion worth of US government debt. Yes, $800 billion of US government debt! Wow! Quite impressive! Now the rest of the story….

    Shortly, Japan will have to sell US debt to fund its own reconstruction and guess what “Mr. Barney” and Hank et al, the US dollar will soon experience its own earthquake and China and Japan will forge an ever closer bond even if Japan must be subservient!

    China, with its astute Science and Engineering educated leaders knows full well that in nourishing its intent to strengthen regional cooperative spirit, it must help Japan and it will withut question. Do you recall China’s Sichuan province earthquake in ’08, well, Japan was the first to offer assistance….

    China needs a diversified consumer market like Japan offers as it knws full well that America is falling mire and more behind with the lack of any leadership and it must get distance between itserlf and the growing indebted American culture as Depression looms ahead!

    The earthquake will have significant influence on economic and political decisions as az much weakened Japan turns to China and the Sendai earthquake has already weakened America’s importance to Japan and this spells much trouble dead ahead for America, the Republic we love, yet we see rampant corruption and nl decisive leadership, merely continued partisanship and nothing less than a dog and pony charade!

    Listen very intently…Chinese will become the most prominent language on the internet within five years — what did I say? You heard it – get your kids to take Chinese now for they will need to speak and read Chinese – no question! While English is still the most wieely spoken language globally, China’s growth in 2010 alone added
    36 million users with it reported recently that there are some 450 million users in Chinese, some 140 million people mre than reside here in the States and further, over a third of Chinese population….Let’s talk another day about the economic ramifications which will result from the growing numbers using Chinese as a language of choice far surpassing the west —

    Further, while missile launchers are reported to be under constructin in Venezueal and this WH cares little to understand the need to read the Monroe Doctrine and thwart andy such effrts by Tehran to site such installatins to our south, when we discuss economics, wow – as an International “Commodities” Specialist engaged in the trade of substantial coal and iron ore, the President of Columbia announced that China was building a railroad some 138 miles long across his country to help China transport 200,000 barrels of oil – daily – from Venezuela and 10% of oil will be undoubtedly redirected over night to China from America…that is an economic nightmare….and where is Winston Churchill’s bust at the WH, it has been replaced by martin luther King and this is specifically what I have been saying for so long..We here on Main Street have seen eight sitting Presidents and 19 Congresses fail to establish a comprehensive US Energy Policy and the depiction in narrow-minded perspective as a community organizer in Chicago immersed by its focus on slavery rather than a broad understanding that that is past history and today, the issues are far different and time is of the essence and Amrica with its litigators will never even cmpete with pan-Asian educated leadership whose CV encompasses Science and Engineering disciplines and I am in awe watching orders for copper, coal, iron ore and so many commodities destined for Asian port where some 50 years of stockpiling has alreadyu taken place and We see the congealing Asian power and notation in Tagesspiegal of this President and Congress taking a back seat to addressing global affairs with Barry et al stating that “more nations, not just the United States, bearing the responsibility and the cost of upholding peace and security.” The problem, n one has stepped up to the plate and you know that the growing Germany and the Vatican in nurturing ties to Kuwait’s Emir Sheikh Sabah Al-Ahmad Al-Sabah has led to quiet and collaborative efforts to establish a strategic partnership as Germany, much like in WWI and WWII, Berlin will frge ahead in the contineud supply of weapons to the Middle East and Germany knows full well it cannot lose any position in the Arabian Pennisular for its adversary, Iran and German will clash for certain and this too will play havoc on global economic stability and it is intersting to note the heavy investment into Germany countries like the UAE and Qatar are making forging relationships with the Germans who the Muslim world should fear far much more than Americans who are foolhearty to even understand Biblical prophecy as clearly stated in Pslam 83 where Germany is allying as it is today with moderate Arab nations and War will unleash itself and We have no one in the west who truly reads the Bible to understand why We as descendants of Abraham and our brken pride of power and leadership will certainly bring depressiona nd despair to so many for We lack any leadership, only to turn and view C-Span and the dog and pony show!

    Take your number and get into the soup line now for investment ratings and other will erode just as our standard of living will drop ever so quickly that a cup of sup and a small piece of bread will at most feed the few…

    God Bless America!

    Christopher Tingus
    PO Box 1612
    Harwich (Cape Cod), MA 02645
    chris.tingus@gmail.com

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