As a fraction of net household wealth, which totaled almost $ trillion in 2006, the negative NIIP is even smaller – less than 5 percent. Moreover, the U.S. investment income balance, which essentially represents the debt service on the NIIP, remains positive, at least for now.
Thus, even after years of current account deficits and corresponding increases in net liabilities, the United States continues to earn more on its foreign investments than it pays on its foreign liabilities. And, as best we can tell, the share of U.S. assets in foreign portfolios does not seem excessive relative to the importance of the United States in the global economy.