Actually it looks like what Heinz is probably talking about is the current account balance deficit., $435 billion in 2000.
stls.frb.org
>>The U.S. current account summarizes all transactions involving flows of goods, services, income and
unilateral transfers that take place between U.S. and foreign entities, which include private individuals,
businesses and governments. The current account balance is simply the difference between U.S. receipts
from the rest of the world and U.S. payments to the rest of the world as a result of these transactions. If
U.S. payments exceed receipts, then the U.S. is said to be running a current account deficit. During 2000,
U.S. payments exceeded receipts by $435 billion.
U.S. receipts arise from exports of goods and services, interest and dividends received by U.S. owners of
foreign stocks and bonds, the reinvested earnings of the foreign affiliates of U.S. corporations and gifts to
the United States from foreign residents and governments. Conversely, U.S. payments result from imports
of goods and services, interest and dividends received by foreign owners of U.S. stocks and bonds, the
reinvested earnings of U.S. affiliates of foreign corporations and gifts from the United States to foreign
residents and governments.
This definition highlights a number of important facts. First, the receipts and payments encompass much
more than the movement of merchandise across national borders. Second, the current account reflects the
interaction of numerous decisions by individuals, firms, and governments both in the United States and
abroad. Third, when receipts exceed payments, the United States, on net, is acquiring assets abroad.
When U.S. payments exceed receipts, foreigners, on net, are acquiring assets in the United States.<< |
