Despite Improving U.S. Current Account Deficits, Risks of A Crisis Growing

American investors are sending their capital overseas in rapidly increasing quantities.

The only thing propping up the dollar thus far are mega purchases of US assets, including government bonds, by benevolent foreign governments.

The rapid growth of these outflows is consistent with scenarios suggesting that a financial crisis will result in a 'hard landing' for the U.S. economy. But for those purchases by foreign central banks and governments, the dollar might have collapsed already

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