The depth of America's financial markets and the country's open capital account have made the dollar attractive.
It will be months before statistics are published for this year's capital account.
If China opens the capital account before it reforms its SOEs, foreign lending may help feed their investment hunger.
By opening the capital account soon, China could claim several prizes, reformers argue.
It retains a closed capital account and limits foreign participation in its economy.
The US also has a big deficit on its capital account, which has made it the world's largest debtor nation.
Operating an open capital account, Indonesia was always vulnerable to panic.
Opening up the capital account would attract a lot of hot, speculative money, just as it did in the rest of Asia in the early 1990s.
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In these circumstances, capital account liberalization looks off the table.
Last January, Yi Gang, the head of the State Administration of Foreign Exchange, stated that China would make the renminbi convertible on the capital account in five years.
Thanks to a closed capital account (even if cracks are appearing) and government control over domestic banks, China has been able to buy vast quantities of dollars without fuelling inflation.
These subjects, which each receive a chapter in the report, differ markedly from last year's CEA outlook, which highlighted the capital account surplus, workforce skills, retirement savings, intellectual property and agriculture.
Two factors made this approach work at Goldman: partners saw their money in the capital account grow at an incredible rate under Mr Weinberg's leadership, and, perhaps as important, he set a selfless example.
For one thing, Tom Holland of the South China Morning Post argues convincingly that as long as Beijing depends on investment fueled by cheap money to create growth, it cannot allow capital account convertibility.
Then last month the chief of the State Administration of Foreign Exchange, a division of the central bank, removed any ambiguity when he stated that China would make the renminbi convertible on the capital account in five years.
These would eventually rise further, perhaps a lot further, were the country to open up its capital account without first having a political and economic system with more transparency, less corruption, and some notion of sound lending practices.
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Key reforms that would open up the country's financial sector such as the liberalization of interest rates and the opening of the capital account have been put on the back burner, and the timeline for their realization is uncertain.
This new architecture is also justified on the grounds that it will help avoid adhoc controls now being imposed by individual countries and help lay down ground rules for orderly capital flows and a realistic timetable for capital account convertibility.
This makes them consistent with other measures to relax restrictions on the capital account such as the expansion of the Qualified Foreign Institutional Investor scheme, which allows foreigners to bring portfolio investment capital into China but only in a carefully regulated manner.
More importantly, the financial barriers that surround China's economy, such as its closed capital account, restrictions on currency trading, and prohibition on short-selling, mean that shares in China trade at different prices from those with identical rights listed on other overseas exchanges.
No deduction shall be allowed for amounts paid or accrued for such taxes and carrying charges as, under regulations prescribed by the Secretary, are chargeable to capital account with respect to property, if the taxpayer elects, in accordance with such regulations, to treat such taxes or charges as so chargeable.
According to Martin Neil Baily, a senior fellow at the Peterson Institute for International Economics in Washington, the "striking thing" about last year's report was that it painted a rosy view of the trade imbalance by focusing on the capital account surplus, rather than its inverse, the current account deficit.
Ms. HUELLE: Well, my credit line has been reduced, which is my safety net, which means now I have to be conservative going forward into the holiday season with my spending, because I now have to keep the safety net in my liquid capital account, whereas before, I could've, you know, spent a little more, got more objects in, but now I have to keep that in my account.
Thanks to a higher oil price and capital-account controls, the central bank's reserves are moderately healthy.
Mr Walker estimates domestic saving from money-supply and capital-account data (which, again, should be more reliable than national-account numbers).
New restrictions on private-sector capital-account transactions mean that they are unable, for the moment, to pay their foreign creditors.
These trial reforms, while still relatively modest, are significant in large part because they show a way forward for capital-account liberalization.
They for example may have to seek approval of a commission to raise rates or adjust a capital reserve account in insurance or banking.
In addition, the shrinking balance sheet of GE Capital on account of the sale of its commercial real estate holdings is expected to impact its results.
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In fact, consumer goods and cars made up less than 40% of American imports in 1996, while highly sophisticated capital goods account for 41% of exports.
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