The US has massively increased its petroleum exports thanks to shale. So does that explain the big improvement in US exports relative to imports over the last ten years or so?
Not according to Matthew Klein. His explanation is that Americans are good at making REAL investments outside the US, whereas non-US entities’ investments in the US consists mainly of bonds, US government debt in particular. And the latter is never going to give a spectacular return on capital.
BTW, Matthew Klein is a smart cookie: he backs full reservebanking.