Why does America attract capital?

[DANIEL.DAVIES at flemings.com]

"Bodhisattva" has a theory that the Europeans and Japanese send their funds
to America because the Americans are much more efficient at finding things
to do with them.  I contend that the USA attracts money the old fashioned
way  -- by paying for it.

These figures correct as of 1102 GMT

               Country        3month interbank          10yr

     Germany        3.12           4.09

     France              2.92            4.19

     Japan               0.08            1.77

     UK             5.13           4.70

     USA            4.58           5.20

The Americans have higher interest rates than Europe or Japan, so they
attract capital inflows, so they can finance their trade deficit.  Some
economist should make a model of this, or something . . . . . .

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