If the official settlements account is zero, whenever the United States has a current account deficit, it must also have a capital account deficit.

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When the United States has a current account deficit, it typically means that it is importing more than it is exporting, and thus, it needs to finance this deficit. This is usually done through the capital account, where foreign investments into the U.S. (like buying U.S. Treasury securities, investing in U.S. companies, etc.) offset the current account deficit. Therefore, a current account deficit is often associated with a capital account surplus, not a deficit. The official settlements account (or balance of payments) being zero indicates that all accounts (current account, capital account, and financial account) net to zero, reflecting that all international transactions are balanced.

If the Official Settlements Account Is Zero, Whenever the United