Global imbalances threaten U.S. economy with unsustainable deficits and debt.
The U.S. has big deficits in both its budget and current account, which might not be sustainable in the long run. Other countries are lending money to the U.S. to cover these deficits, but this situation might not last. Some experts think this imbalance could last for a while, but others believe it will cause problems in the next few years. The U.S. could end up owing a lot of money to foreign investors if this continues.