>As for Bergsten, I wonder about the "national savings" argument. The U.S.
>has been running current account deficits for 20 years, with and without a
>fiscal surplus, and thru the Plaza accord and the reverse Plaza. What good
>will savings do when the dollar tanks? Wouldn't it matter more what form
>they're in than that they are there?
These guys are a bit coy about admitting it, but I bet a lot of fiscally orthodox Dems - like Bergsten - wouldn't mind seeing a recession harsh enough to balance the current account and cure the U.S. of its profligacy. Structural adjustment comes home. They may not even put it this bluntly among themselves, but it's the logical outcome of their fetish for fiscal discipline.
Doug