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America's Trade Deficit
Dear Senators Dorgan and Graham,|
China is actually making homes affordable to average Americans, financing the American federal budget deficit and underwriting the imports into America. Just because Mr Greenspan has retired does not mean you can play cowboy and indian with the American and by extension the global economy.
I strongly recommend you read this article from the NYTimes.
http://www.nytimes.com/2006/02/1 ... mp;partner=homepage
[quoted from NYTimes]
February 10, 2006
U.S. Trade Deficit Hit All-Time High in 2005
By VIKAS BAJAJ
The United States trade deficit jumped nearly 18 percent in 2005, the government reported today, hitting its fourth consecutive record as consumer demand for imports increased and energy prices soared.
The $725.8 billion gap, which is almost exactly twice the deficit in 2001, was driven by a 12 percent jump in imports and a more muted 10 percent increase in exports, the Commerce Department reported. The nation last had a trade surplus, of $12.4 billion, in 1975.
As a percent of the gross domestic product, the trade gap increased to 5.8 percent from 5.3 percent in 2004 and 4.5 percent in 2003.
Perhaps one of the most important factors in the rising deficit is the import of oil and other energy sources. Trade in petroleum products accounted for 29 percent of the total deficit, up from 25 percent in 2004. Imports for petroleum goods climbed 39 percent, to $251.6 billion, after rising by 39 percent in 2004. Excluding oil and other petroleum products, the trade deficit would have grown 10 percent.
Though oil and other energy prices fell late last year, which helped lower petroleum imports in December, they have risen sharply early this year because of concerns about Iran's nuclear program.
In December, the nation saw a 1.5 percent increase in the deficit, to $65.7 billion, as imports of computers, cars and airplanes rose and exports of planes, which had risen sharply in November, dropped. The trade deficit in petroleum products narrowed by about $1.2 billion, but nonpetroleum imports increased by $2.3 billion, to $47.3 billion.
Take the first step by debating this rationally rather than take the parochial view of your special interest groups, even if it is mid-term election for the Senate.