Post #1147 by Goofyhoofy on the Macroeconomic Trends and Risks board

Personal Finance Topics / Macroeconomic Trends and Risks

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Japan has committed to investing $550 billion into the United States economy but it's not clear where exactly the money would be invested or how the profits would be allocated.

This is a “feature” of more than one of the announced agreements, but it is unclear to me what it means - or even what it *could* mean. Is it that the Japanese government will build factories (for what?) Or purchase US soybeans to feed the homeless (?) in Japan? It’s not that there will be investment by Japanese companies in the US, heck, we’ve had that for decades. (I live in Tennessee. We have Toyota plants, and nearby Georgia has other Japanese automaker plants, I see Kobuta tractors in farmer fields, and so on, not to mention SONY electronics at Best Buy - but that is all private investment which is ongoing.

Is it that the Japanese *goivernment* is doing something? And if so, what?

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