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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (25124)	3/8/2005 12:34:23 PM
From: CalculatedRisk	Respond to of 116555

Demographics key to US current account-Fed's Poole Tue Mar 8, 2005 12:01 PM ET WASHINGTON, March 8 (Reuters) - While the U.S. current account deficit cannot grow forever, it is a natural result of demographics and gap may reverse as Japan and Europe ages, Federal Reserve Bank of St. Louis President William Poole said on Tuesday. In a speech that he said could calm some of the anxiety about the historically large U.S. current account deficit, Poole said it is reasonable to expect the saving rate of a nation to drop as the population ages. In remarks prepared for an economics conference at Palm Beach Atlantic University, Poole noted that Japan's and Europe's populations are aging sooner than America. "A case can be made that the current account surpluses of these countries as well as the current account deficits of the United States will be reversed in the future as these aging economies draw on their claims against the United States," Poole said. Both Japan and Europe face imminent demographic challenges, he added. "The conclusion that the Japanese current account will be driven into a deficit in the relatively near future, and that this deficit will be chronic and increasing is difficult to dismiss," Poole said. yahoo.reuters.com