Greenspan: U.S. Foreign bored one day a huge deficit.

<P Align=left> </ P> <P> Federal Reserve Chairman Alan Greenspan's speech has never been so clear. .</ P> <P> "the huge U.S. current account deficit has been growing, but can not go on indefinitely growth, foreign investors will one day be boring." Monday on a meeting held in Mexico in a televised speech by .Greenspan on the U.S. trade deficit has expressed his worries. .</ P> <P> data released on Friday, September 66.1 billion U.S. trade deficit has hit a new record. .Currently, the U.S. current account deficit has exceeded the proportion of its GDP by 6% in 2004, the U.S. current account deficit has hit a record 668 billion U.S. dollars. .The huge U.S. current-account deficits to the inflow of capital to make up for that by foreign investors to buy U.S. bonds, to repay. .</ P> <P> Greenspan suggested that, when held by a large number of foreign investors in U.S. stocks and U.S. bonds are "afraid" when the U.S. current account deficit payment limitations will be exposed. .He also hinted that there are some signs that this potential change is occurring. .</ P> <P> Greenspan, the example of the Bank for International Settlements 2005 3 months to track the 30 trillion in the form of its existence the U.S. dollar 42.5%, 39.3% are in euros and form, and compare that .dollar ratio than 1 year declined by 4 percentage points, the euro rose by 5 percentage points. .</ P> <P> in the current U.S. dollar is still the most important international reserve currency of the situation, to East Asia as the representative of a large number of foreign investors holding U.S. financial assets, and create the U.S. capital account surplus. .In the last century, the Southeast Asian financial crisis, East Asian countries the central bank's foreign exchange reserves from 1997 when only 728 billion U.S. dollars, the rapid growth in 2004 to over 2.4 trillion U.S. dollars. .In his speech, Greenspan acknowledged the status of world reserve currency U.S. dollar, but he said the U.S. should learn from the experience of the United Kingdom some lessons. .Britain has committed an error is to support the British pound become the world's reserve currency, but the British economy's ability to resist the financial crisis, which greatly weakened. .</ P> <P> Greenspan that the U.S. should learn a lesson is to keep the U.S. financial flexibility, so that the United States have the ability to withstand a series of combat, such as "9.11", and high oil prices over the past 2 years .. .</ P> <P> Greenspan said then, compared to the British after World War II, the U.S. economy the flexibility of the current foreign investment to enable them to cope with the impact of divestments, and, until now foreign investors are still willing to borrow money .to the United States. ."But one worry is that maybe one day they will lose interest in holding dollars, and that when they sell U.S. stocks and U.S. bonds, causing stock prices plunged and interest rates soaring." Greenspan said. .</ P> <P> Greenspan said that as the rate of return outside the U.S. increased risk adjustment, the foreign investor interest in U.S. assets may be reduced, restrictions on foreign investors holding U.S. assets more general focus on the reasons for .may still be "home complex." .</ P>.