Europe posts Q3 2010 current account deficit of 20 BB to the world; US in current account deficit of 25 BB to Europe

Europe is in still in current account surplus with the US.  So, the EU sells more stuff to the US than we buy.  We can also say that the US has a current account deficit with Europe. 

But as we remember from Econ 101, every current account deficit, is also a capital account surplus as money is leaving the turmoil from the old world to invest in the turmoil of the new world.  Those dollars that we are sending over to Europe have to make it back here eventually.  Via Eurostat:
According to the latest available data, the EU27 current account recorded a deficit of 19.7 BB euro in the third quarter of 2010, compared with a deficit of 26.1 BB in the third quarter of 2009 and a deficit of 34.9 BB in the second quarter of 20103.

In the third quarter of 2010, the EU27 external current account recorded a surplus with the USA (+25.0 BB euro), Switzerland (+11.2 BB), Hong Kong (+4.5 BB), Brazil (+3.7 BB), Canada (+2.3 BB) and India (+1.6 BB), and a deficit with China (-44.2 BB), Russia and Japan (both -7.4 BB).


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