The US current account deficit, currently at 5.4% of GDP, could lead to a significant collapse of the dollar. Global capital markets deepening may not prevent this decline. The dollar's adjustment depends on goods-market integration. The situation today is similar to the early 1970s when the Bretton Woods system collapsed. Faster growth abroad helps only if it focuses on nontradable goods, while faster productivity growth in foreign tradable goods worsens the US current account imbalance.