Emerging Nations Can't Get Enough Greenbacks

Economists who keep looking to Japan to explain capital flows into and out of the U.S. financial markets are missing the real story, according to economist Michael Howell of Baring Securities Ltd. Non-oil-exporting developing countries, such as South Korea, Taiwan, and much of Latin America, are running a hefty trade surplus with the U.S. and reinvesting their proceeds in America.

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