I came across this article (
http://www.stlouisfed.org/news/speeches/2001/04_10_01.html) when
looking up figures on the US trade deficit.  Believing myself fairly
well informed on the accounting mechanisms of the Balance of Payments,
I was baffled by two assertions in Mr. Pooles speech.  I will post one
of them here and then post the other as a separate question having
seen any responses this question might generate:

1. "Assume that a foreign firm decides to build or expand a production
facility in the United States...In each of these cases, foreign
residents are increasing their claims on assets in the United States.
In terms of balance of payments accounting, these transactions would
tend to increase the U.S. capital and financial account surplus,
which, in turn, means that the U.S. current account deficit would
increase."

My understanding is that this FDI transaction would affect the capital
and financial account in the following manner: A debit, due to the
inflow of foreign exchange assets, and a credit to record the FDI
investment. Therefore, the effect on the capital and financial account
is neutral as the debit offsets the credit.  Am I missing some other
crucial item?