Oil Imports Swell U.S. Trade Deficit

[sintax]

Oil imports swell U.S. trade deficit

By MARTIN CRUTSINGER
The Associated Press

On the Net
Trade report:
www.census.gov/ft900

WASHINGTON — The United States imported a record amount of foreign oil in June and shipments of Chinese clothing and textiles soared, too, pushing the nation's monthly trade deficit to the third-highest level in history.

The Commerce Department reported Friday that the June deficit jumped 6.1 percent to $58.8 billion, compared with a May deficit of $55.4 billion. The politically sensitive deficit with China also set a record, sent higher by a 39.2 percent surge in Chinese clothing and textile imports.

Analysts said the new report highlighted two of the biggest threats to the economy — soaring energy prices and the danger that the widening trade gap with China could spawn a protectionist backlash in the United States.

“The higher global oil prices go, the bigger the check we have to write to foreigners and that will be a growing weight on economic growth,” said Mark Zandi, chief economist at Economy.com.

http://www.theithacajournal.com/apps/pbcs.dll/article?AID=/20050813/LIFESTYLE06/508130326/1030

[okoboji]

1. good thing the pResident is

on vacation and doesn't have to deal with issues like this. This might stree him out.

[FloridaPat]

2. Imports from China are up 39% in one month? The higher oil prices

go, the more dollars come back to our country and kept the Republican National Debt afloat. Should the price of oil ever go on the Euro, we will be in an economic disaster. Plus Iraq gets all that extra money. When we invaded Iraq was getting a measly $20 a barrel. Now they should be swimming in money. I wonder where all that money is going.

[teryang]

3. Right, CAFTA will mitigate this economic disaster

Where do people get the idea that free trade agreements help the trade deficit?