US current account continues to worsen

In response to http://economictimes.indiatimes.com/articleshow/msid-1240066,curpg-1.cms

With manufacturing being outsourced, and now the ‘low end’ services too, US is left with R&D and the typically high end services, which in turn is a fallout of R&D. but in course of time, these high end services would lose their levels, and would move out to the other countries. So innovation is the key to survival.

Cost differential has led to outsourcing of services by companies who are seeking opportunities. This is not unlike arbitrage in the derivatives segment, though with some constraints like red tapism.

It might not be far before US ends up being a gamut of trading companies, with nothing but margins to survive. Manufacturing is already getting locked up at china, while India still struggles to follow. With the world getting eased out, and globalization finding acceptance, it might not be long when free movement of resources, including people would blur any advantage a particular economy might have. Arbitrage opportunities would be reduced, and there would be one free for all economy.