The reality is that this scenario becomes more likely as the current account deficit grows. The larger problem is that we have less control over our own economic wellbeing.
www.financialsense.com/fsu/editorials/charting/2005/030... www.financialsense.com/fsu/editorials/charting/2005/0302.html
Q: Given this information, is the current account deficit something to fret about? A: Yes, it is a problem and not a reflection of America's strength. Q: Is the current account deficit sustainable? A: No, it is not sustainable.
www.northerntrust.com/library/econ_research/daily/us/dd... www.northerntrust.com/library/econ_research/daily/us/dd012605.pdf
Current account deficits also pose a long-term problem for the U.S. economy. Because financing a chronic deficit requires the United States to borrow from abroad, future interest payments on this debt could lower the ... The third section analyzes the long-term problem associated with a chronic current account deficit.
findarticles.com/p/articles/mi_qa3699/is_199507/ai_n872... findarticles.com/p/articles/mi_qa3699/is_199507/ai_n8729495/
The U.S. current account deficit, driven by the United States' widening trade deficit, is the largest it has ever been, both as a share of the U.S. economy and in dollar terms. How much longer can the United States continue to spend more than it earns and support the resumption of ... The deficit is not now a problem...
www.imf.org/external/pubs/ft/fandd/2000/03/mann.htm
Is the Current Account Deficit a Problem? Represents a debt we will have to repay in the future. Just as for a household, the extent of the problem depends on our ability to service the debt- but notice that CAD as a percentage of GDP (abi...
http://www.authorstream.com/presentation/Olivia-61537-E...
Does the "current account deficit" matter? Part II ... Even this would not be a problem if the Fed was a competent manager of currencies, but it is not, and that, not "current account imbalances," is likely to be the root cause of any economic instabilities going forward.
www.newworldeconomics.com/archives/2006/012206.htm
   And it outlined the core policy choice the US government has made, namely, not to do anything to try to reduce the vulnerabilities associated with the large - and I suspect still growing - US current account deficit. ... The problem is not just that the US is borrowing large sums from abroad, but it is borrowing in...
www.rgemonitor.com/blog/setser/93047
The Indebted Empire: Americas Current-Account Deficit Problem Export ... by: Morgan, Iwan ... CiteULike is a free online bibliography manager. Register and you can start organising your references online.
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In the past 20 -25 years the dollar increased with the current account deficit and vice versa. Figure 2 provides an illustration of the dollar value over the time. As the savings gap in the US enhances the current account deficit it also causes a ... Title: The U.S. current account deficit - Whose problem is it? ()
www.grin.com/e-book/28003/the-u-s-current-account-defic... www.grin.com/e-book/28003/the-u-s-current-account-deficit-whose-problem-is-it
Is the large current account deficit a problem for the U.S.? Economic theory offers some scenarios in which a current account deficit is a rational response to economic conditions or a response that may even enhance economic welfare.
www.frbsf.org/econrsrch/wklyltr/2000/el2000-37.html