Fire Sale on America?

The CBS Evening News reports that foreigners now hold over one trillion, five hundred billion U.S. dollars and assets. In 1988 alone, there were 307 foreign acquisitions of U.S. companies, with a total value in excess of $55 billion. These numbers are the latest in a trend that suggests the United States is now more subject to the direction of other nations and their businesses. The country's standard of living continues to decline relative to that of our trading partners. The continued weakness of U.S. business and drop in the value of the dollar seem to be creating the “fire sale on America” that Senator Lloyd Bentsen warned of during the 1988 presidential campaign. As a nation, we are importing (buying) more than we are exporting (earning). As a consequence, we are selling U.S. business assets to finance our current consumer imports.