Summary

Yesterday, the Federal Reserved released the latest edition of its publication "Z.1," "Flow of Funds Accounts of the United States." The most recent data are through the quarter ended 6/30/05.

Based on the numbers, the United States came out of the second quarter owing the rest of the world a stunning $5.2 trillion more than the rest of the world owed it. This marked an increase of more than $600 billion from a year earlier. Making these numbers even more horrific, though, is that as recently as roughly 20 years ago, the United States was still a net creditor nation. Continue to Gillespie Research for the balance of the essay: http://www.gillespieresearch.com/cgi-bin/s/article/id=666