deficit? I am in EC470 Japanese Economy with Flath. I thought I understood this

Background to help acclimate anyone who can help me (if I have any of this wrong please correct me, that could be why I am stumped):
current is stuff that affects this year, capital is stuff that affects future years. also current is stuff like merchandise whereas capital is stuff like stock. surplus is having more credit than debit, deficit is more debit than credit. Credit is what is given up, debit is what is gained in the respective accounts.

So in these simplistic terms it seems clear that if in the present one gives up more than one gets then you have "made claims on the future income of foreigners," but I don't know how to state it better than that.

4/5/2006 4:38:36 PM