That would mean that the US would continue to need substantial inflows of foreign capital to fund business investment and housing construction.

This requires increased investment in innovation and human capital.

He looked for a profitable investment for his capital.

Business investment without infrastructure and human capital cannot be profitable.

Capital controls and fiscal incentives will keep legitimate private capital at home and promote domestic investment.

Although high growth requires large scale capital formation, the relation between investment in real capital assets and human capital in China seems to be out of proportion. This is reflected in the current investment ratio for real capital assets of 43 of GDP, compared to 4.3 investment in human capital in the form of education.

Higher transactions taxes increase the cost of capital, ultimately lowering investment.

Many countries require capital inflows to finance investment or official debt.

In earlier times, growth was fueled by capital scarcity capital investment attracted a high rate of return, and this created a virtuous circle of saving and investment.

This is reflected in the current investment ratio for real capital assets of 43 of GDP, compared to 4.3 investment in human capital in the form of education.

Simply put, when the state seizes the incentives and drivers of capital investment, owners of capital go on strike.

Since there were no substantial capital flows for a long time, this did not matter at first.

Real investment (investment adjusted for the declining prices of high tech and information related capital goods) continued to roar ahead.

Even though the markets seem to be anticipating substantial levels of quantitative easing, US corporate investment remains subdued.

One structural reform that could drive global growth is substantial infrastructure investment in developing and developed countries alike.

This may help to increase the foreign investment and reduce the capital flights.

Rather than holding an investment in our bodies, we re all at risk of becoming capital my body, but somebody else s capital.

Although high growth requires large scale capital formation, the relation between investment in real capital assets and human capital in China seems to be out of proportion.

Capital spending (outside the energy sector) and residential investment would strengthen as growth accelerated.

This will require increased investment of both financial resources and political capital and a shared commitment to put that investment to good use.

But even though net international capital flows are going the wrong way, there are still substantial gross capital flows outward from the world economy s core to its periphery.

Because investment is so low, net capital exports from Germany are nearly 4 of GDP.

Meanwhile, higher public spending on capital investment and other special procurements will boost domestic demand.

Property or capital gains taxes could help curb demand for housing as an investment vehicle.

Around the same time, the investment group United Capital Partners suddenly purchased 48 of Vkontakte.

That risk is substantial.

The difference is substantial.

When countries suffer from low investment demand, freeing up capital inflows does not do much good.

Such distortions need to be replaced by investment, both from repatriated flight capital and foreign sources.

America s SEC did not require more capital or halt risky practices at the big investment banks.

In the UAE, the Abu Dhabi Investment Authority has estimated capital assets of 875 billion, making it probably the world s largest state owned investment company.

Indeed, investment banks like Goldman Sachs and Barclays Capital are already inventing new types of securities to reduce the capital cost of holding risky assets.

New stability and confidence are underpinning buoyant investment and (amounting to the same thing) reducing capital flight.

And a lower growth rate implies that less investment is needed to maintain the capital output ratio.

The lion's share of the technologies, know how, and a substantial proportion of the investment, needs to come from Europe and the USA.

And the bills are substantial.

Many buildings sustained substantial damage.

Latin America has a population of 550 million, with average yearly per capita income of 4,000, immense natural resources, and substantial human capital.

Nor is it feasible to generate power locally with a diesel unit, owing to high fuel costs and the need for substantial initial investment.

So China is stuck in a currency creating cycle GDP growth encourages investment, which boosts demand for capital.

As a result, productivity growth is slowing, and, though capital seems cheap and profits plentiful, investment remains sluggish.

Sound economic policies, sustainable economic growth, and adequate rates of return on investment tend to reverse capital flight.

Today s historically low interest rates should encourage long term investment, as they lower the current cost of capital.

So China is stuck in a currency creating cycle GDP growth encourages investment, which boosts demand for capital.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined. Indeed, investment banks like Goldman Sachs and Barclays Capital are already inventing new types of securities to reduce the capital cost of holding risky assets.