America's Unsustainable Current Account Deficit


"Never in the history of modern economics has a large industrial country run persistent current account deficits of the magnitude posted by the U.S. since 2000."


A day of reckoning for what economists call our "current account deficit" is likely to arrive soon.

And the price will be paid in a currency drop that will significantly reduce domestic economic growth.

That's the conclusion of a study by NBER Research Associate Sebastian Edwards.

National Bureau of Economic Research, 23 January 2017

PS
I reached the same conclusion in 2001...
Stein's Law: If something cannot go on for ever it will stop.

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