Earlie,
USA's external deficit, by accounting identities, must equal an excess domestic investment by foreign investors. What makes you think that - given the relative growth pictures of the G7 world - the USA will not continue to be a better place to invest than the EU or Japan? That, by definition, means that the buck is safe. I think the odds of that are quite favorable, but I know that you feel that the USA market is not a good place to invest. In that case, of course, the buck has a hard time ahead. So, I guess, our main difference lies in our different views about investment opportunities in the US market, and not the external deficit as such (which is inevitable from an accounting perspective given a huge inflow of foreign investments into the domestic market).
-BGR. |
