/biz/ - Business & Finance

1. In 4 years, the negative balance of investment positions increased by more than 10 trillion.

2. The US net negative international investment position (IIP) reached $18.1 trillion, i.e. The United States has 18 trillion more liabilities than assets in all instruments and types of investments (direct, portfolio and other investments).

3. In 4 years, the USA has increase the deficit of the international investment position by more than 10 trillion dollars, which is 1.5 times more than in the entire history of the USA up to and including 2017.

4. For Q1 2022, the decrease in liabilities reached 1.42 trillion, the decrease in assets covered 1.06 trillion, resulting in a total net decrease of $376 billion for the quarter.

5. Since March, the situation has worsened sharply, the outflow of non-residents in the state treasury reaches a maximum in 6 years (260 billion in two months).

6. Europe, Japan and Korea are sinking into record current account deficits, QE (quantitative easing) is being discontinued - these two channels were the main source of foreign capital to the US.

7. The foundation of the United States' existence is confidence in the dollar and net inflows of foreign investment to finance record deficits in the current account and federal budget. Without an inflow of foreign investment, the current structure of the financial system will fall apart. Everything will change - proportions, ratios, directions of cash flows.