June 24, 2005
NOBODY BUYS FUTURES IN NATIONS WITH NONE:
Foreign investment drops sharply in France and Germany (Lisbeth Kirk, 24.06.2005, EU Observer)
Foreign investment in France and Germany, the two largest economies of the European continent, fell sharply in 2004, according to figures released yesterday (23 June) by the Organisation for Economic Cooperation and Development (OECD) in Paris.Posted by Orrin Judd at June 24, 2005 7:56 AMIn France, inward investment almost halved last year, falling from $43bn to $24 bn.
In the case of Germany, foreign investors actually withdrew about $39bn from the country, reversing the inflow of $27bn recorded in 2003, the OECD said in the report "Trends and recent developments in foreign direct investment".
On the other side of the Channel, foreign direct inflows into the UK more than tripled, coming up to $78.5bn in 2004, according to the report.
The figures adds further to the overall impression that Tony Blair’s Britain and George W. Bush are getting globalisation right, while Germany's chancellor Schroder and France's president Chirac are not.
The US has regained the role as the world’s principal destination for direct investment, said the report.
Mr. Buffett, please explain to us again how the dollar is over-valued against the Euro?
Posted by: bart at June 24, 2005 8:32 AMInward direct investment comes close to being what people think exchange rates are.
Posted by: David Cohen at June 24, 2005 10:09 AMThat's funny I just had someone this morning telling me how the Chinese purchase of IBM or Unical or whatever spelled DOOM for us all as we will be awash in Asians in five years. I pointed out that people said the same thing about the Japanese in the 80's and I don't see them conquering the US anytime soon.
Posted by: Governor Breck at June 24, 2005 10:56 AMAn American will buy back Unocal for 60 cents on the dollar in 2010.
Posted by: oj at June 24, 2005 11:59 AMAn increase of foreign investment increases wealth available to Americans, by fostering job creation here, and strengthens the dollar, for those who think that is important, as all investment in the US is dollar-denominated.
Posted by: bart at June 24, 2005 12:20 PMAh, but it's also good for Americans to go invest in promising foreign markets. That it's a win when we do it, and a win when it's done to us drives certain people up the wall.
Posted by: David Cohen at June 24, 2005 2:07 PMDavid,
Precisely, that's what economists call the 'benefit from trade.' It's something the economic illiterates from Marx to Buchanan to the National Council of Catholic Bishops to the AFL-CIO just don't understand but is self-evident to anyone who gives it 5 seconds of thought.
Posted by: bart at June 25, 2005 7:28 AM