Louis Proyect writes:
>The Wall Street Journal isn't worried about the US current account
deficit, which was 805 billion last year and is expected to reach one
trillion USD's this year. The standard argument of conservative hopefuls
is that the overhang doesn't represent any danger so long as the dollar is
the reserve currency and foreign confidence in the US economy remains
high.
Richard Wolff spent most of his time at the Bubble panel at Leftforum last
weekend insisting that the current account deficit is a ticking time bomb.
===========================
And not only the left. Mainstream analysts like Martin Wolf, Kenneth Rogoff,
Nouriel Roubini, etc. have been holding their collective breath, especially
since the Fed started raising interest rates in mid-2004. But investors
haven't yet followed suit because the good times are evidently still rolling
for them.
