Where does the money from foreigners go in the U.S.?
Saying foreigners lend money to “the U.S.” is shorthand for money moving from overseas to investments in the U.S. Some of the money goes into stocks, some goes to finance bond issues by U.S. firms, part of the money finances brick and mortar operations, such as car manufacturers, and some to the U.S. government. From 2001 to 2004, foreigners have financed 80 percent of the federal government deficit.
