An article in the Wall Street Journal referred to "debt-strapped emerging markets already struggling with current-account deficits." Why might we expect that countries running current account deficits might also have substantial foreign debts?

Foreign debt, also known as external debt, is the total amount owed by a country to foreign creditors. The creditors can be other governments, corporations, or international financial institutions such as the World Bank and International Monetary Fund.

External debts arise from a variety of needs, including funding for development projects, stabilization of the nation's currency, or to cover the deficits in the current account. The practice becomes concerning when the borrowed funds are not used for projects that stimulate economic growth or when a nation borrows beyond its capacity to repay.

Long-term foreign debt can lead to several issues, like currency depreciation, decreased credit ratings, and can affect a country's sovereignty by giving creditors influence over its financial policies. Therefore, it's crucial for countries to manage their foreign debts effectively to avoid a debt trap, where they face spiraling debt that continues to increase due to interest and the necessity to borrow more just to pay off existing debt.

International trade involves the exchange of goods and services between countries. This exchange is crucial as it allows countries to expand their markets for both goods and services that may not be available domestically.

As part of international trade, countries export goods and services they can produce efficiently, while they import those that are otherwise unavailable or costlier to produce internally. However, when a country continuously spends more on imports than it earns from exports, it runs into a current account deficit.

A balanced trade environment is considered healthy, wherein a nation’s exports and imports are relatively equal, indicating a stable economy and sustainable international relations. By contrast, trade imbalances - persistent current account deficits - can be a sign of economic issues and may lead to accumulation of foreign debt as countries borrow to pay for their imports.

Economic indicators are statistics that provide insight into the economic performance of a country. They are used by analysts and policy makers to understand the current situation of the economy and forecast future performance.

Some common economic indicators include Gross Domestic Product (GDP), unemployment rates, inflation rates, and the current account balance. Particularly, the current account balance provides a clear picture of a country's international trade, showing the difference between the value of exports and imports of goods and services, along with international transfers and dividend payments.

Countries with current account deficits are indicators of an economy that might be living beyond its means, borrowing to finance its spending habits. Over time, this can translate into substantial foreign debt, as international borrowing becomes necessary to finance the ongoing deficit. Monitoring these economic indicators is therefore vital for understanding the overall health of an economy and for making informed decisions that promote sustainable economic growth.