Foreign official assets in US increased $286B in 3rd Quarter (more)

[The Straight Story]

Foreign-owned assets in the United States

Foreign-owned assets in the United States increased $286.4 billion in
the third quarter, following an increase of $270.7 billion in the second.

U.S. liabilities to foreigners reported by U.S. banks increased
$46.6 billion in the third quarter, following an increase of $41.2 billion in
the second.

Net foreign purchases of U.S. Treasury securities were $14.1 billion in
the third quarter, down from $29.7 billion in the second.

Net foreign purchases of U.S. securities other than U.S. Treasury
securities were $90.5 billion in the third quarter, up from $88.8 billion in
the second. Net foreign purchases of U.S. stocks were $2.9 billion, up from
$1.8 billion. Net foreign purchases of U.S. corporate bonds were a record
$84.7 billion, up from $51.1 billion. Net foreign purchases of federally
sponsored agency bonds were $2.9 billion, down from $35.9 billion.

Net financial inflows for foreign direct investment in the United
States were $53.1 billion in the third quarter, up from $32.6 billion in the
second. A shift to net inflows on intercompany debt from net outflows and a
small increase in reinvested earnings more than offset a decrease in net equity
capital inflows.

Foreign official assets in the United States increased $60.1 billion in
the third quarter, following an increase of $73.3 billion in the second.

Net U.S. currency shipments to foreigners were $2.6 billion in the
third quarter, down from $8.8 billion in the second.

The statistical discrepancy--errors and omissions in recorded
transactions--was a positive $11.8 billion in the third quarter, compared with
a negative $0.2 billion in the second.

In the third quarter, the U.S. dollar depreciated 2 percent on a
trade-weighted quarterly average basis against a group of 7 major currencies.

http://www.bea.gov/bea/newsrelarchive/2004/trans304.htm

[eallen]

1. I've been shifting more of my portfolio overseas....

I accelerated that shift, after the election, on anticipation that the dollar will continue to fall. That seems to me the only prudent thing to do, unless you believe that Bush will reverse his borrow-and-spend ways, or that he has some magic pixie dust that erases trade imbalances.

That's just me. Do likewise at your own risk.

[The Straight Story]

2. Can't Say I blame you really

I can't help but have this feeling that things will appear to get better only to get terribly worse within 2 years...