[OPE-L:7580] [OPE-L:1131] Re: monetary inflows versus capital accumulation

From: Allin Cottrell (cottrell@ricardo.ecn.wfu.edu)
Date: Mon Sep 06 1999 - 09:00:57 EDT

On Mon, 6 Sep 1999, Paul Cockshott wrote:

> Are the current monetary inflows to the USA from abroad
> greater or less than the net us capital accumulation?
> What I want to know is whether the inflows are funding
> accumulation or just an increase in indebtedness.

Some U.S. figures for 1999 Q1 (all in billions of 1992 dollars):

Nonresidential Investment, $1012
Private Fixed Investment, $1344

Exports - Imports, $303

Meanwhile the personal saving rate is about -1 percent, so
that personal saving is on the order of -$50b.

Looks to me as if the inflows are financing accumulation.

Total "Real Private Investment" has been rising almost
monotonically from a low of 12 percent of GDP in the 1990
recession to a current figure of about 18 percent.

(Numbers from National Economic Trends, Federal Reserve Bank of
St Louis, July 1999.)

Allin Cottrell.

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