US Current Account Defecit hits a quarter trillion

The USA and the US Dollar are now in trouble. This defecit has been spiraling out of control for awhile and will only get worse until policies are put into place which balance the current account defecit. A drastic drop in the US dollar is soon to ensue.

The current account is a section in a country’s balance of payments (BOP) that records a country's current transactions. The account is divided into four sections: goods, services, income (such as salaries and investment income) and unilateral transfers (for example, worker’s remittances).

A current account deficit occurs when a country has an excess of one or more of the four factors making up the account. When a current transaction enters the account, it is recorded as a credit, and when a value leaves the account, it is marked as a debit. Basically, a current account deficit occurs when more money is being paid out than brought into a country.