The Fading Exorbitant Privilege: A Warning Sign for the U. S. Economy For decades, the United States enjoyed a unique advantage in international economic dealings, known as the "exorbitant privilege.
" This phenomenon allowed the country to accumulate massive foreign debt while maintaining a positive balance of trade and net investment income.
However, recent data from the Federal Reserve Bank of New York indicates that this luxury is rapidly disappearing. The numbers are staggering: as of 2023, overseas investors hold nearly $69 trillion in U. S.