In any case, I predict we'll see a current account deficit in the upper teens before this is all over. Don't worry ladies, the US will look just like you've wanted him to become economically all these years; Michael Moore.
Monday, March 30, 2009
Current Account Deficit as a Percentage of GDP
The US of course has some severe economic problems. But on one of my regular economic statistic check ups I noticed that if you contrast the US versus say, Iceland, we don't look so bad (which is like comparing me versus Michael Moore). We are "only" spending 6% more than we make (and I don't think the OECD has updated their stats, this, considering the Federal Budget for 2009 should be more like 12%). Hairs split aside, Norway which has consistently managed a surplus in the teens is like the Daniel Craig of the current account world (I'm just assuming Daniel Craig because all the girls in the Captain's life swoon when you mention his name).
In any case, I predict we'll see a current account deficit in the upper teens before this is all over. Don't worry ladies, the US will look just like you've wanted him to become economically all these years; Michael Moore.
In any case, I predict we'll see a current account deficit in the upper teens before this is all over. Don't worry ladies, the US will look just like you've wanted him to become economically all these years; Michael Moore.
Do you think that the stimulus package will make Americans buy more imports or do you confuse current account deficit with budget deficit? I mean, last time I checked import and export shares of GDP were at about 14% and 8%, respectively. So, even if exports plunge, imports would have to rise by 20% or more relative to GDP in order to make the current account balance reach the upper teens as you say.
ReplyDeletewho is Daniel Craig?
ReplyDeleteJoie,
ReplyDeleteYou got to quit going to church and go see a couple more movies. The new James Bond (my female friends and mother all said they'd sell me into slavery for him).
Dtrum,
I think the only people capable of lending us money will for foreigners. There is the chance though that inflation takes hold and tilts the exchange rate of the dollar to make it favorable to buy our goods, thus lowering the trade balance, but I have faith in the American people's ability to ef up.
Cpt.
"In any case, I predict we'll see a current account deficit in the upper teens before this is all over."
ReplyDeleteYou seem to be assuming a correlation between poor economic performance and a higher current account deficit. The United States has run a current account deficit consistently for more than a century with one big exception: the Great Depression saw the US running a current account surplus.
You also seem to be ignoring the fact that other countries are trying stupid shit to get their economies going as well. As bad as Obama's bailouts are, they're still not much compared to the UK, which dropped 40% of their GDP on their bailout package last year. Now they're cranking up the quantitative easing.