The right model for a country: Selling bonds to the rest of the world and investing in corporate capital in the rest of the world

With a view to population ageing, the right model for a country is as follows: Selling public sector bonds to the rest of the world, which provides external financing at a low cost; Buying equities and companies in the rest of the world, which provides high incomes that can finance pensions. This model of international financial intermediation carried out by a country (gross external bond debt, gross external assets in equities and companies) therefore enriches the countries that implement it (this is traditionally the model of the United States and Japan, but also France). Conversely, countries which, because they have an external deficit and a shortfall in equity savings, are forced to sell their companies to the rest of the world get poorer. This is also the case with the United States and France, which in reality appear in both models as they are both sellers of their companies and buyers of companies in the rest of the world.