A quote from Michael Pettis- https://www.financialsense.com/contributors/michael-pettis/titillating-terrifying-collapse-dollar-again



Some very good information to attempt understanding current-account imbalances.



The US is confronted with the dilemma of "higher debt burden", even though it is supposed to be an advanced developed economy. Is it due to "foreign" investment?



"It turns out that foreign investment is only good for an economy if it brings needed technological or managerial innovation, or if the recipient country has productive investment needs that cannot otherwise be funded. If neither of these two conditions hold, foreign investment must always lead either to a higher debt burden or to higher unemployment. Put differently, foreign investment must result in some combination of only three things: higher productive investment, a higher debt burden, or higher unemployment, and if it does not cause a rise in productive investment, it must cause one of the other two."