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How can the U.S. have a surplus in investment income and be the “world’s largest debtor nation?” How does this relate to “dark matter”?

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How can the U.S. have a surplus in investment income and be the “world’s largest debtor nation?” How does this relate to “dark matter”?

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Historically, U.S. overseas investments have generated higher returns than foreign investments in the U.S., resulting in a surplus in investment income. “Dark matter” is the latest attempt to explain the longstanding surplus in investment income for the “world’s largest net debtor nation.” It suggests that the higher returns on U.S. companies’ overseas investments largely reflect advantages in technology and management that should be included in U.S. exports (thereby lowering the trade deficit) and added to the value of the U.S. direct investment position (thereby lowering the U.S. net debt position).

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