US, Japanese, German foreign investment

Barbara Laurence cns at
Sun Mar 14 17:19:34 PST 1999

Dennis, I meant US and Japan investments in Germany. You're right, interlocks between German and French and other European capital are extensive. Which is one reason why there's a euro (by the way, a German Marxist scholar visited yesterday, and he said that the euro was all about defeating the welfare state and the unions). I was careful to say "new, real investments." Meaning in the margin.

Doug, I don't think your data distinguish between foreign direct investment that are merely M and A's, contrasted with the FDI that consist of the construction or addition or modification of real productive capacity. I'm speaking of the latter. I see the former mainly as a financial, property transfer transaction that may be motivated my many things..........Doubtless the big "capital imports" into the US in the late 1980's pertained to a/ the much cheaper dollar after 1985; thus cheap US productive capacity and b/ Japan's surplus, when Japan was buying up anything they could get their hands on during the Great Bubble after 1985, most of which is now sold off. Again, as noted in my first posting, we have "economic" changes at root due to the politics of the US/ Japan, a strange politics indeed.

Doug, do you know if there are any figures on real FDI (new buildings, new equipment, new business services, etc.) vs acquisitions only? Thanks for any help. Thanks also for the new LBO; I learned a few things and more can you say?

Jim O'Connor

More information about the lbo-talk mailing list