Higher oil prices and Americans' unquenchable thirst for imports of all kinds pushed the U.S. trade deficit to a record $66.1-billion in September.
The trade deficit included a record monthly gap with China (up 8.9 per cent to $20.1-billion), according to the U.S. Commerce Department; it was the largest imbalance the United States has ever recorded with a single country.
The trade deficit in the third quarter represented a record 5.7 per cent of U.S. gross domestic product.
The U.S. is now on track to post a record annual deficit of more than $700-billion, easily eclipsing last year's deficit of $617.6-billion. A bill that has strong support in the U.S. Senate would hit Chinese imports with a 27.5-per-cent tariff. But the measure hasn't come to a vote.
Although the numbers are once again stoking protectionist fires in Washington, where support for free trade is waning, America has not addressed the critical trade deficit issue entirely-- we have been experiencing for far too long a net loss of our country's capital. Our manufacturing sector has been declining; most of the nations who have gladly picked up our traditionally middle-class jobs show an environment use that's been unsustainable, and their standard of living is still far below that of first-world countries. Our U.S. dollar has been declining in value, and our corporate share of our federal tax base is at all time lows.
Let us show the irresponsible congressmen and women the door, as they have not been responsible for the long-term rise in our country's trade deficits. Let us bring in challenger candidates to replace them who have listened to we, the people -- we have been frustratedly expecting our nation's critical issues to be seriously dealt with for too long. Contribute and volunteer to the VOID movement -- Vote Out Incumbents for Democracy-- and we will send this message to Washington on election day, 2006!
Source: The Globe and Mail (Toronto)
d.a.n said at :
10:22 AM, 11 17 2005 | Permalink
I heard yesterday on NPR that the Chinese were getting nervous about investing in the U.$. National Debt, and would start investing elsewhere.
Also, inflation was reported yesterday (16-NOV-2005) to have risen 0.2% .
With $1 billion (or more) in interest due daily, falling manufacturing, falling wages, $40 Trillion in personal debt, $8 Trillion national debt, and looming shortfalls in Medicare and Medicaid, the government won't have any choice but to print more money, which will create more inflation. It's a vicious circle, and it has the capacity to create an economic melt-down. Especially, when you consider the long list of other serious problems facing the nation.
d.a.n | November 17, 2005 10:22 AM
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