The return of the deficit, he said, will make the government a net borrower for the first time in almost five years.

Further, farmers are large net borrowers and own lots of assets.

This means that the United States has been a net borrower of saving from other nations.

A consumer maybe a net saver or a net borrower.

But one thing is clear: the nation's creditors, the people wealthy enough to lend out more than they borrow, are doing far better than the net borrowers.

A similar imbalance exists in the US, which runs a large trade deficit (net import position) and therefore is a net borrower of capital from abroad.

For example, if the Treasury were a net lender rather than a net borrower in financial markets this would put downward pressure on interest rates and encourage more investment.

Initially, perhaps they only borrowed in these markets for a highly seasonal cash needs, being a net borrower for only say 90 days per year.

They were net borrowers.

And hence we are net borrowers in the world markets.