Dollar Worrying debt dynamics

It is the moment that every chronic debtor fears: when his or her borrowing is used to meet interest payments on past debts. Both the debtor and his lenders know that this is unsustainable. Countries occasionally face the same crisis situation – usually emerging markets, but not always. Indeed, the US may be there already. This is potentially calamitous news for the dollar. The root of the problem lies with the US current account deficit. Until recently, the US found it easy to cover this gap. ...