"We saw earlier that the current account deficit equals the net amount that the United States borrows abroad in each period, and I have just shown that U.S. net foreign borrowing equals the excess of U.S. capital investment over U.S. national saving. It follows that the country's current account deficit equals the excess of its investment over its saving."
Are the words 'capital investment' ambiguous there?
Also, where is the evidence for a savings glut? According to Bernanke the world is swimming in liquidity, funded by a mature population with money to burn.
What evidence can anyone point to that this is really the case?
I'm suspicious of any argument that seems to be trying to conflate personal, corporate and national debt and investment - as Bernanke seems to be trying to do.
