Brad Setser: Can Anyone Other than the U.S. Fund a Curren...

Brad Setser: Can Anyone Other than the U.S. Fund a Current Account Deficit These Days?: "To exaggerate a bit, the world may soon only have one borrower...

...In some sense that���s a safe equilibrium: the United States��borrows in dollars, so it is less exposed to the risks created by the Fed���s monetary tightening and a rising dollar��than��others. Exorbitant privilege and all. In another sense though it is a disappointment: the United States already has a lot of external debt, it doesn���t really need any more.�� And it would be globally healthier if the savings of aging Europe and aging Japan and aging Korea and slow growing Taiwan flowed to the world���s young and potentially rapid growing emerging economies, not to fund inequality increasing tax cuts in the United States���

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