Q. The United States, Debtor Nation

The United States (US) is a debtor, just like the poorest states in Africa, Latin America also Asia....For most of the past 30 years the United States (US) has been piling up large trade deficits. The current amount... has now reached a deficit of 6 percent of GDP also must be financed by capital inflows. Foreigners must purchase large amounts of US Property, stocks, bonds, bank deposits also currency, or the current-account deficit cannot be financed.... Asia Times Sept 28, 2006

a.) Explain why a current account deficit "must be financed by capital inflows."

b.)Under illustrate what circumstances should the debtor nation status of the United States (US) be a concern?