U.S. International Investment Position Net Liabilities Reach 80% of Net Assets of Creditor Countries

International financial institution Nomura's latest research report points out that while the development of artificial intelligence has driven U.S. economic growth, it has also exacerbated inflation through rising chip and electricity prices, and expanded the trade deficit due to a surge in imports of technological equipment. At the same time, large cloud computing companies have issued a significant amount of debt, pushing up U.S. Treasury yields. The report shows that the net liabilities of the U.S. international investment position have soared to about 80% of the total net assets of all creditor countries. Nomura warns that if the development of artificial intelligence falters, combined with high valuations in U.S. stocks and weakening fundamentals, it could trigger a significant correction in U.S. stocks, evolving into a global risk-off event that prompts foreign capital to de-risk and drives down the value of the U.S. dollar.

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