external deficit

A third disaster might be a huge financial crisis perhaps involving a collapsing dollar and a brutal reduction in the US external deficit.

However, as the history of the yen and the Plaza Accord show, devaluation alone will not solve the US's chronic external deficit problem.

Australia, with a huge external deficit despite high commodity prices, may soon be worse than either.

The rest of the world may no longer need further increases in the US external deficit.

It should eventually narrow the external deficit, by boosting exports and limiting imports.

Until the US stops spending more than it saves, its external deficit will remain.

Countries in external deficit receive private financing from abroad.

The second rebalancing involves a global demand switch from external deficit to external surplus counties.

This could help fund the domestic capital spending boom needed to reduce the external deficit.

For the external deficit countries, the concern is how to lower fiscal deficits without tipping their economies back into recession.

The US is proposing policy measures that will increase its external deficit.

Given the size of America's external deficit, a further drop is likely.

That decline is already helping to shrink America's external deficit.

the fourth is internal, external deficit slump.

Now, that support for the external deficit and the dollar has been taken away.

This external deficit cannot now be financed in the market.

What pundits have not noticed is that the US does not have adequate manufacturing capacity to eliminate the external deficit.

In other words, the dollar needs to fall by a lot more to make a significant dent in America's external deficit.

There are two ways the falling dollar can reduce the external deficit.