Meaning: The quote by David Korten addresses the complex issue of the inflow of money into the United States and its impact on the country's economy. Korten, an American author, critic of corporate globalization, and prominent activist, is known for his work in advocating for sustainable development, economic justice, and environmental stewardship. In this quote, he highlights the paradoxical nature of the U.S. economy, where money flows in, inflates assets, and enables a substantial trade deficit, indicating that the country is consuming more than it is producing.

Korten's assertion that money flows into the U.S. and inflates its assets refers to the phenomenon of foreign investment in U.S. financial markets, real estate, and businesses. This influx of capital from abroad has a significant impact on the valuation of assets within the country, including stocks, bonds, and property. As a result, the prices of these assets can be driven up, leading to what Korten describes as the inflation of U.S. assets.

The consequence of this inflation, according to Korten, is the existence of a "monstrous trade deficit" in the U.S. A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade. In the context of the U.S., this means that the nation is purchasing more goods and services from foreign countries than it is selling to them. The influx of money and the inflation of assets contribute to the ability of the U.S. to sustain such a trade deficit, allowing the country to continue consuming at a level that surpasses its domestic production.

Korten's critique of this situation suggests that the U.S. economy's reliance on foreign capital and the resulting trade deficit may have detrimental long-term consequences. The imbalance between consumption and production, fueled by the inflow of money, raises concerns about the sustainability of the country's economic model. It also raises questions about the potential risks associated with a heavy dependence on external financing and the implications for the nation's economic sovereignty and resilience.

Furthermore, Korten's quote reflects broader discussions around the interconnectedness of global economies and the impact of capital flows on domestic economic dynamics. The inflow of money into the U.S. and its role in driving asset inflation and trade imbalances underscores the complex relationships between nations in the global economic system. It also underscores the intricate web of financial interdependencies that can shape economic outcomes at both the national and international levels.

In conclusion, David Korten's quote encapsulates a critical perspective on the inflow of money into the U.S. and its implications for the country's economy. His observations draw attention to the complex interplay between foreign investment, asset inflation, and trade imbalances, prompting consideration of the long-term sustainability and resilience of the U.S. economic system within the broader context of global economic dynamics.