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US external position not such a big risk to the dollar

Although the US is running a budget deficit equal to 9% of GDP and a current account deficit of

3% of GDP, its net external liabilities at 17% of GDP are not actually that large. Last year, they

even shrank. What's more, the US is one of only a handful of countries that manage to earn a

positive net flow of income from a negative net stock of overseas assets.

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