AXIOMATIC ACCOUNTING

The trade deficit (the current account) plus net capital inflows (the capital account) must equal zero. A slow-growing nation like Japan runs a trade surplus of $200 billion/year, but it invests $200 billion/year abroad. Conversely, the fast-growing US runs a net trade deficit of $1 trillion/year but receives net foreign capital inflows of $1 trillion/year. You can have a trade surplus or positive net foreign investment. There are no victims.