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Greenspan: Foreigners Will Eventually Tire of Financing Huge US Deficit


The head of the U.S. central bank says the huge U.S. current account deficit can not expand forever because foreigners will tire of financing it.

U.S. Federal Reserve Chairman Alan Greenspan made the comments Monday in an address by satellite to an audience in Mexico.

Mr. Greenspan said so far, the United States has not had problems attracting foreign financing, even though the current account deficit exceeds six percent of U.S. gross domestic product.

The current account is considered the best measure of a nation's international economic standing because it tracks goods, services and investment flows between countries.

Mr. Greenspan said flexibility in the U.S. economy will temper any economic fallout.

Some information for this report provided by AP and AFP.

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