Reply #8: US as a net importer

[idlisambar]

"It is also true that the US is a net-importer. But that is not a danger either. This has been the case for almost the entire history of the US, if I am not mistaken and correct me if I am."

In fact before the early 80's, the U.S. was the world's largest creditor, only in the last 25 years or so has it assumed its chronic debtor role. To give our current situation a little perspective, the current account deficit for 2004 will probably come out to around 6% of GDP. Before the early 80's America had never had a deficit that exceeded 1%.