Current Account Gap Widens to Record

[DBoon]

http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20060314-000365-0845

"WASHINGTON -(Dow Jones)- The nation's current account deficit expanded during the end of 2005 and finished the year at $804.9 billion, up 20.5% from 2004 amid rising oil prices.

The current account deficit increased to $224.9 billion during October through December from a downwardly revised $185.4 billion in the third quarter, the Commerce Department said Tuesday. The third-quarter deficit was originally reported as $195.8 billion.

For all of 2005, the broadest gauge of the nation's trade was $804.9 billion, swelling from 2004's $668.1 billion. Most of the 20.5% increase was due to a widening of the deficit on goods trade as imports rose for petroleum and other foreign products.

The current account balance combines trade of goods and services, transfer payments, and investment income. About 90% of the deficit is accounted for by the balance in goods and services. "

NOTE: Look out for falling dollars!

[OneBlueSky]

1. so let me get this straight . . . under Republican rule, the US is now . .

approaching an ANNUAL trillion dollar budget deficit? . . . as they continue to cut taxes for the rich and prosecute an illegal and immoral war? . . . all while robbing the Treasury blind to enrich themselves and their corporate sponsors? . . . and calling Democrats spendthrifts? . . .

yeah . . . that's sustainable . . . sure . . .

the ONLY way to get this country back on track fiscally is to end the war in Iraq immediately, forget about new adventures in Iran and elsewhere, revoke all Bush tax cuts for the wealthy, re-regulate corporations, and move back to a strong progressive system of taxation . . . and soon . . .

it may be too late to salvage the United States, but any "leader" with half a brain and a true interest in serving the nation (as opposed to enriching himself/herself) would at least make the attempt . . .

unfortunately, we can count those "leaders" on our fingers -- without ever having to move on to the toes . . .

[DBoon]

2. While a related issue, this article is not about the Govt deficit

This is about our international trade deficit, a much more ominous warning.

government deficit spending is part of the problem, granted. Poor trade policies and a lack of investment in our economic competitiveness is also part of this.

Correcting a balance of trade deficit is usually done by currency devaluation. The effects of this would not be pretty.

[OneBlueSky]

3. my bad . . . but the point remains the same . . . n/t

.

[TheBaldyMan]

4. it may be about the ITD bit One Blue Sky is right about the cure

a healthy domestic economy would help America dig itself out of the hole Bushco has been digging for the last 6 years. If you must run at a deficit it helps if yor internal economy is not on the brink of bankruptcy