Saturday, January 29, 2005
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Fred Kaplan exaggerates just a wee bit
A few minor corrections to Kaplan's essay:
posted by Dan on 01.29.05 at 06:29 PM
Kaplan's $3 trillion figure is the U.S. net foreign debt.
The U.S. net international investment position was -$2.4 trillion in 2003. If you add in the projected current account deficit for 2004, you get a projected U.S. net international investment position for 2004 of -$3 trillion. The negative of the net international investment position (as you know, but some readers might not) is the equivalent of the U.S. net foreign debt.
The title of your post should, I think, be "Fred Kaplan Misspeaks" rather than "Fred Kaplan Exaggerates a Wee Bit." His use of the word "amassed" makes me think that he meant to write "foreign debt" rather than "trade deficit," but suffered one of those unfortunate bursts of aphasia that most academics know all too well.
All the best,
Noelposted by: Noel Maurer on 01.29.05 at 06:29 PM [permalink]
Hey, it's difficult to make prediction. Especially about the future.posted by: Barry Posner on 01.29.05 at 06:29 PM [permalink]
I look at the 2020 report conclusions and other that spell out a current and future environment where the US ability to project its will on others will decline. This is true wether you are talking about economic or military power.
The problem this poses for the current administration is that they do not realize this.
The admin is still trying to implement their policy on the cheap and the end result is that they are showing that the US is a lot weaker than many believe and that others willingness
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