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[โ€“] 9 points 2 years ago (1 child)

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.

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  • [โ€“] 3 points 2 years ago*

    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.

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