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To: Bill Harmond who wrote (135942)	12/17/2001 2:13:53 AM
From: GST	Respond to of 164685

Aside from a few silly statements -- for example, the assertion that high foreign indebtedness has not had any adverse effect on Australia or Canada, both of which have in fact seen their currencies fall dramatically as their foreign debt rose -- the article is basically sound in its main conclusion -- ie, that the current account deficit is sustainable in the "near term" or the "short run". The author merely assumes that there will be a gradual and orderly decline in the current account deficit over the next few years and never says at any point that the current account deficit is sustainable at current levels in the long term -- and the reason it does not say that is becaue it would be absurd to do so. The current account deficit is simply not sustainable in the long term and nothing in this article suggests otherwise -- not one word of it. Note also that the article cites economists opinions on the current deficit -- it is the greatest threat to the US economy. The article does not support your contention at all. One last point -- the bursting of the stock market bubble is not dealt with at all in this article, even though the run-up in the stock market is considered an important "wealth effect".