Given the net external indebtedness of more than 20% of GDP in 2004, calculations imply a critical US current account deficit of slightly over 1% of GDP (far below the latest figures of 6% of GDP). Here, some qualifications because of valuation effects on the stocks of net foreign assets are in order. However, such qualifications do not change the basic message.
Apart from the benefits of a multilateral netting scheme, we also needed a real time settlement system, for its superior characteristics in terms of risk control and simplicity, and because it would be very useful for our liquidity provision mechanisms.