When Americans invest their money in foreign nations that capital is lost to American investment directly. For decades union and other public funds have invested in foreign corporations and public offerings diverting domestic capital abroad. CALPERS was a leader at divesting in South Africa long ago yet they did of course keep the rest of their foreign portfolio. Outsourcing capital insourcing is deep in the present economic procedures and advantaging domestic investment needs to be accomplished through other means such as reforming capitalism such that no individual could invest in more than three corporations and no corporation doing business with America could employee more than 5000 workers. Competition of intellect rather than networking in collectivism and organization scale domination could be useful points of reform.
Investing in foreign nations instead of the United States has been a common practice for decades, and then the Clinton era commodifying of home mortgages allowed the global derivatives trade to flourish making even the most conservative investment be a way to pay foreign holders of the debt.
Foreign direct investment in the U.S.A. is almost 200 billion annually and the actual cumulative invested is equal to about 16% of America's G.D.P. China receives a little more and the U.S. is one of the investors.
The Alaska Permanent Fund invests globally like so many other state funds. Recently they invested in a corporation that is buying up distressed home mortgages in Wisconsin and elsewhere and converting them into rental properties. Foreigners are also buying up U.S. homes and converting them to rentals and that is one resign why the toxic mortgages from the 2007-8 crash are slowly drying up. Obviously smaller, affordable super-insulated and very strong dome homes would have been a better investment for the ordinary American and still would.
The Federal Government has been a leader in the outsourcing of investment by selling Treasury Securities to anyone in the world including China and Japan. Much of the Chinese investments in the United States such as in Fannie Mae and Freddie Mac let Americans invest their capital through mortgage payments directly in foreign nations.
The Department of Defense costs tax paying Americans trillions and trillions each decade defending America from nations such as China in addition to terror cells of people with box cutters. The U.S. Government through the taxpayers also pay billions and billions each decade to the Chinese Government through interest payments on the Treasury securities so the Chinese can have a profit to invest in building up their Defense infrastructure. By the end of another term of President Obama the interest on the national debt would be about a trillion dollars per year.
President Obama's campaign rhetoric has suggested that Americans would be silly to do the same thing again if it didn't work the first time. That can serve as campaign advice in judging the Presidents first term of office.
The first Obama term has left a U6 unemployment, underemployed and discouraged worker rate of about 18%. Only the comfortable and aloof could imagine that anyone in that U6 category would be silly enough for vote for another four years of a president with that record. President Obama silly had not the ability to organize anything about the economy to bring anything like national debt reduction, full employment and a recovering ecosphere into being. Not everyone in America is incapable; time waits for none and the voters need to change Presidents every four years unless the presider in chief puts up an economic oeuvre worth seconds.
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