US Current Account Deficit

According to Peterson Institute for International Economics, the Current Account dearth of the United States is now at the highest point it has ever reached, nearing $800 billion. This situation is non financially sustainable because in accounting terms it demands that the US saving must import about $4 billion every running(a) day to offset the deficit. The deficit is definitely a problem for the sparing because it has to be addressed both economically and politically.The deuce factors, economics and politics go hand in hand and the relationship between the two factors is directly proportional meaning that when politics are generally tranquil, the rescue grows and vice versa. To be able to address the deficit a junto of well orchestrated cards must be taken thus i) The depression measure is rather obvious and it dictates a sizable reduction in the US budget expenditure.Money guzzlers the likes of the protracted wars in Afghanistan and Iraq accommodate to be contained. ii ) The second measure is an expansion of demand for domestic US products in other economies particularly other major economies for faster results. Along with this expansion, the US has to reduce its dependence on imports particularly oil whose price fluctuations have a negative effect on the US economy. iii) The third measure is a technical gradual and substantial realignment of currency exchange rates.A cheaper sawbuck would stimulate exports which would in turn earn the US the much need foreign exchange. One handicap with this measure is that other major economies like China and the Oil Producing States have to allow the dollar to fall unless against their currencies an act which is not probable. This is because of the less than amiable relations between the US and the other economies. Simply put, these nations might not be very ordain to bail the US out.