German Investment Monetary Surpluses Headed for U.S.

Posted: November 8, 2014 in Econ 101, Free Trade

SOURCE: http://www.desertsun.com/story/money/industries/morrisbeschlosseconomics/2014/11/08/multi-billions-of-german-investment-monetary-surpluses-headed-for-u-s/18720299/

Multi-Billions of German Investment Monetary Surpluses Headed for U.S.

If there has been any question that the U.S. has become the world’s number one target of global excess investment dollars, it’s the more than $65 billion that German investment companies have already spent in the U.S. since the beginning of 2014.

Although Germany has set up U.S.-based automotive assembly plants for such diverse brand names as Volkswagen, BMW, and Mercedes Benz, its liquid investments in the U.S. have lagged, with only 8% of the massive German surplus finding its way to the U.S. prior to this year. Germany had previously ranked well behind France, Britain, the United Kingdom and the Netherlands, and others– ranking seventh among foreign national investments in the U.S.

Its two attempts to snap up available U.S. companies ended badly, with both the $41 billion purchase of Chrysler by Daimler in 1998, and American mobile operator Voice Stream’s $33 billion acquisition turning into financial fiascos.

However, a new investment day is dawning all over the world, and the U.S.A. has become the magnet of choice. This is not only due to the fact that China, Japan, South America, and the rest of Europe have lost their luster, but even more, it’s America’s shining new image as the only world nation that combines massive natural resource surpluses, an unprecedented technological outburst, and security and payback reliability, not matched anywhere else in the world.

America’s internal political disputes play a minimal role, since global investors have become impervious to this problem, alive in every nation with which they’ve had to deal.

Germany, with less than one-third of America’s population, is amassing between $250-$300 billion in financial excess, generated from export surpluses, that puts them on a par with the U.S., China and Japan.

With the rest of Europe evolving into a lost investment cause for the Germans with every passing day, leading German companies like Siemens, Bayer, Infineon, and insurance giant Allianz, and others are scouring the U.S. corporate availability scene, as well as real estate, and other tangible assets.

With the Germans’ shrewdness for spending a buck wisely, in most cases, the unmatched inflow of Germany’s monetary liquidity is a strong sign that the U.S. has become the world’s leading candidate for the world’s billions, and even trillions, well spent in the future.

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