As deficits accumulate, the cost of servicing the net international asset position grows.

This puts China s net foreign assets at roughly 1.8 trillion.

The availability of the balance of unexpended resources depends on the degree of liquidity of the net assets held.

The difference between the net foreign asset position of the United States and the accumulation of past current account deficits is the change in the valuation of those assets, due to changes in asset prices and in exchange rates.

The current account deficit is equal to the trade deficit plus the cost of servicing the net international asset position the net rent, interest, and dividends owed to foreigners who have invested their capital in the US.

In the 1990s, the Djibouti economy deteriorated dramatically, with net external assets falling by 40 per cent.

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However, sustainability should be judged not only by the current account deficit but also by the net foreign asset position of the United States.

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The Closing of America?

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Net capital inflow

Net revenue (1 200.2) (960.7) 239.5

Net total 47 818.0

Gross Net

payments a profits and interest c account d of capital e Global balance f

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Closing the Skills Gap