Trade Deficit Sets Record for 5th Year (AP)

[Omaha Steve]

http://money.excite.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d8nruq5g1&

Trade Deficit Sets Record for 5th Year

Wednesday March 14, 8:38 AM EDT

WASHINGTON (AP) — The deficit in the broadest measure of trade set a record for the fifth consecutive year even though the imbalance in the final three months of 2006 shrank, reflecting a lower foreign oil bill.

The Commerce Department reported that the imbalance in the current account jumped by 8.2 percent to $856.6 billion, representing a record 6.5 percent of the total economy. For the fourth quarter, the deficit shrank by 14.6 percent to $195.8 billion, the smallest quarterly imbalance since the summer of 2005.

Even with the fourth quarter improvement, administration critics say the soaring deficit for the whole year shows the failure of President Bush's trade policies to protect American workers. They contend that America is going into hock to foreigners at an alarming rate even though they have been more than willing so far to hold American assets in return for sales of televisions, cars and other goods to U.S. consumers.

The current account is the broadest measure of trade because it covers not only trade in goods and services but also investment flows between countries. It also represents the amount of U.S. assets that have been transferred into foreign hands to cover the gap between American exports and imports.

FULL story at link.

[xchrom]

1. the golden calf of ''globalization'' was that would be able to sell manufatured goods abroad.

instead we've turned into a service economy -- and this trade imbalance simply shows how deep we're digging this hole.

[OhioChick]

2. And Here is How We're Handling the Soaring Deficit:

More U.S. Schools Offering Chinese Programs

"It's about jobs and a world economy," said Richard Alcorn, who with his wife won state approval last month for the first Chinese immersion charter school in Massachusetts. "There are unbelievable opportunities to do business in China, so there's a need for Americans to learn the language so we're not left out."

http://www.newsnet5.com/education/11243225/detail.html

[Lasher]

3. The Bush economic record is the worst ever in almost every category

Why should trade deficits be any different?

Average annual S&P 500 gains during Junior's first six years, based on the closing price on the last day of each year: 2.59% You have to go back to the Great Depression for performance that bad.

[ryanmuegge]

4. True enough, but Clinton started the ball rolling in this direction. It's undeniable.

Actually, globalists criticize Bush for being much more protectionist than Clinton.

[Lasher]

6. No, that's not undeniable

I deny it, therefore it is not undeniable.

[ryanmuegge]

8. Doesn't matter. The facts are what they are, independent of your little opinion.

PNTR with China DID occur under Clinton. It's a fact. After this, the trade deficit exploded year after year. Again, it is a fact.

[ryanmuegge]

5. This is a permanent structural relationship.

This is not going to change. The Chinese are only going to loan us dollars to buy their shit at Wal-Mart for so long, but we all know this.

[twiceshy]

7. I think you can trace this all the way back to Nixon....

It accelerated with the breakup/takeover of companies under Reagan and the wholesale shipment of our machine-tool to China and other developing countries. It is very saddening as I drive around the byways of New England to see all the abandoned factories and mills and to think of how they once provided good-paying jobs for average citizens. The information economy is a nice canard, but not everyone has the intellectual capacity to be a Java programmer or a CAD designer, and now we see those jobs being shipped to India and elsewhere. And so we become the "Would you like fries with that?" economy as we spiral down to 3rd world status. Thanks, all you traitors of both parties for the past 30 years.

[ryanmuegge]

9. I agree with you there.

[SpiralHawk]

10. "D'oh, Mission Accomplished, I think." - Commander AWOL