fed speech, 2006-01-23
At the same time, however, it is not difficult to see that if the deficit continues to run at a level close to 7 percent of GDP-and most forecasts assume it will for some time-the net international investment position of the United States will deteriorate sharply, U.S. net obligations to the rest of the world will rise to a very substantial share of GDP, and a growing share of U.S. income will have to go to service those obligations.
Sentiment: neutral
Topic: mp_economic_activity