Economy Turns Corner!: Trade Deficit Reaches Record $195.1 Billion

[stopbush]

June 17, 2005
Current Account Trade Deficit Reaches Record $195.1 Billion
By ELIZABETH BECKER

WASHINGTON, June 17 - The United States hit a record deficit of $195.1 billion last quarter in trade and capital flows with the rest of the world, the Commerce Department reported today, re-igniting worries that the economy can not sustain this level of debt.

If the current pace continues, the United States' current account deficit could reach $780 billion this year, a drastic increase from last year's record $617 billion.

The United States continued to attract foreign investments and the rate of growth in the trade imbalance has slowed down. But the direction remains the same and the overall deficit in the current account, the broadest measure of international trade, now stands at a record 6.4 percent of the gross domestic product.

"Clearly, the current account deficit can't go on like this forever," said Daniel Griswold, director of the Cato Institute's center for trade policy studies, a libertarian think tank that is generally optimistic about the United States' trade record.

http://nytimes.com/2005/06/17/business/17cnd-trade.html?pagewanted=print

[Up2Late]

1. Freedom is on the march

Sig Hiel!:evilfrown:

[Quixote1818]

2. Great, more good news

nt

[Elwood P Dowd]

3. The twin deficits are about to hit a combined 1.2 trillion dollars!

More Free Trade please. We must pass CAFTA and FTAA, or it might take us another 3-4 years to reach the magic 2 trillion mark.

:sarcasm:

[Tux]

4. Nice

Bush's free trade ideas should beat that. Afterall, Republicans have to out do themselves and see how badly they can screw the economy.