Probably a subject that will cause a great deal of different views but really interested to hear from anyone concerning... 1. What people believe are the key economic 'perils' of an excessive current account deficit of a major country like the US and 2. What would need to happen for markets to start trading in a way that suggested deficits are genuinely causing a problem and 3. What would happen in debt/equity markets and why? I know it is a bit of an ask to expect long winded replies to this but it is an important and relevant topic. If you want to simplify your answer, you could try shorthand such as the following which should illustrate what I am getting at: eg. Higher than expected Non Farm Payrolls ---> Assumed improving/better than thought economy ----> More people employed meaning more wealth circulated in economy to spend on goods/services ----> Stocks generally go up with assumed increased demand -----> Treasuries move down as they are comparatively less attractive and greater demand will theoretically result in increased inflation/interest rates. So..... Widening current account deficit ---> ???