The Shrinking Cushion: America's $28 Trillion Problem The Federal Reserve Bank of New York's latest research paints a stark picture of America's financial situation: a $28 trillion gap between what the US owns in overseas assets and what foreign investors hold.
This deficit, equivalent to 90% of the nation's current GDP, is not just a number – it's a symptom of a deeper issue.
For decades, the US has managed to reap more from its investments abroad than it paid out to foreign investors on US assets. The "rate of return advantage" had been a key factor in the country's economic success story.