10/16/08

Deficit on Current Account Contracting

At last count, the current account deficit increased to $183.1 billion (preliminary) in the second quarter of 2008 from $175.6 billion (revised) in the first quarter.
This chart, covering a five year rather than fifty year period, shows a broader contraction since 2006. Almost certainly it will continue to contract. For the debt to be paid, surpluses must be run. Will it be paid? Good question.