U.S. Net Foreign Liabilities

Interesting area. Can some of the adjustment in net foreign assets happen as a result of change in exchange rate values. This was certainly the case in 2004. This will certainly be less important in 2005. Nouriel Roubini's Global Economics Blog: U.S. Net Foreign Liabilities...larger and larger: "So, what does this imply for the change in the U.S. net foreign liabilities at the end of 2005? In 2004 we got lucky that a large $600 billion plus current account deficit led to a much smaller change in net foreign liabilities because, in part, of $190 billion (or $272 billion) capital gain in currency values"