U.S. current account widens to record ($187.9 billion/6.3% of GDP)

[UpInArms]

http://cbs.marketwatch.com/news/story.asp?guid=%7B68C4F768%2DAD74%2D449E%2DBBDC%2DB9892AF9FAA9%7D&siteid=mktw

WASHINGTON (MarketWatch) -- The U.S. current account deficit widened by 13 percent to a record $187.9 billion in the fourth quarter of 2004, the Commerce Department reported Wednesday.

The deficit amounted to 6.3 percent of the nation's gross domestic product, also a record.

For all of 2004, the current account deficit grew to a record $665.5 billion, totaling a record 5.7 percent of GDP. Read the full release.

Economists had expected the current account deficit to reach $181.7 billion in the fourth quarter, according to a survey conducted by MarketWatch. See Economic Calendar.

...more...

[rooboy]

1. Reagan taught us that deficits don't matter.

He had Alzheimer's disease, by the way.

[primavera]

2. Only when they accrue under Repuke administrations

Under Repukes, deficits are good for the economy. Naturally, it would be an altogether different matter were deficits to accrue under a "tax and spend" Democratic administration, then it would be time to storm the White House. Happily though, Dems don't run deficits, they run surpluses, so we're safe.

[snippy]

5. Speaking of republican deficits . . .

A comparison of government spending and the annual federal deficits accumulated since 1960 under republican presidents and under democratic presidents shows that republicans are bigger spenders than democrats. Bush has been about average as a big spender for republican presidents. If Bush was a democrat he would be the biggest spending democrat since WWII.

The Kennedy/Johnson administrations accumulated deficits of $53.5 billion or $269.9 billion in constant 2000 dollars. Annual spending by the federal government averaged 18.8% of GDP and the annual deficit never exceeded 3% of GDP.

The Nixon/Ford administrations accumulated deficits of $265.5 billion or $798.5 billion in constant 2000 dollars. Annual spending by the federal government averaged 19.9% of GDP and the annual deficit exceeded 3% of GDP 2 times.

The Carter administration accumulated deficits of $252.7 billion or $519.4 billion in constant 2000 dollars. Annual spending by the federal government averaged 21.2% of GDP and the annual deficit never exceeded 3% of GDP.

The Reagan administration accumulated deficits of $1,412.2 billion or $2,082.3 billion in constant 2000 dollars. Annual spending by the federal government averaged 22.3% of GDP and the annual deficit exceeded 3% of GDP 7 times.

The Bush the Lesser administration accumulated deficits of $1,035.8 billion or $1,241.5 billion in constant 2000 dollars. Annual spending by the federal government averaged 21.9% of GDP and the annual deficit exceeded 3% of GDP 4 times.

The Clinton administration accumulated a surplus of $62.5 billion or $15.9 billion in constant 2000 dollars. Annual spending by the federal government averaged 19.6% of GDP and the annual deficit never exceeded 3% of GDP.

The Bush the Liar administration has so far accumulated deficits of $947.5 billion. and projects additional accumulated deficits during his administration of $1,612.5 billion. Annual spending by the federal government has averaged 19.7% of GDP and the annual deficit has exceeded 3% of GDP 2 times and will once again this fiscal year.

Thus, of the slightly more than $3.9 trillion in accumulated deficits since 1960, more than $3.6 trillion has been accumulated under republican presidents while only about $244 billion has been accumulated under democratic presidents. In constant 2000 dollars the numbers are more than $5.8 trillion in total accumulated deficits with about $5.1 trillion accumulated under republican presidents and about $700 billion accumulated under democratic presidents. And of the 15 times since 1960 that the annual deficit has exceeded 3% of GDP, every single time it was under a republican president.

http://www.whitehouse.gov/omb/budget/fy2006/sheets/hist01z3.xls(Note: The first year of a presidential term operates under the budget and appropriations of the last year of the preceeding presidential term, except for any supplemental appropriation bills passed during such first year. The summary above does not include any such supplemental bills.)

[Toots]

6. $265.5 billion or $798.5 billion..........$252.7 billion or $519.4 billion

Something just doesn't seem correct with these two . Carter's deficit was only 13 billion less than Ford's but you say in 2000 dollars it was 270 billion less. :crazy:

[snippy]

7. Those are the numbers from the Bush administration.

I just added them up. I think the difference is accounted for by the extra years of inflation when converting to year 2000 dollars. For example, in 1972 Nixon ran an actual deficit of $23.4 billion which according to the Bush administration is $86.9 billion when adjusted for inflation to year 2000 dollars. By comparison, in 1979 Carter ran a deficit of $40.7 billion which is $89.5 billion when adjusted for inflation to year 2000 dollars. http://www.whitehouse.gov/omb/budget/fy2006/sheets/hist01z3.xls

[sinkingfeeling]

3. Why aren't the Republicans called the "Spend and Charge" party of

fast-growing big government?

[UpInArms]

4. because they're

conservatives - with an emphasis on the CON

[cthrumatrix]

8. Trade Deficit Hits Record $665.9B in 2004 AP - (Bush blames "growth")

Trade Deficit Hits Record $665.9B in 2004

5 minutes ago

By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON - The United States deficit in the broadest measure of international trade soared to an all-time high of $665.9 billion in 2004, showing in stark terms the speed with which the country is becoming indebted to the rest of the world.

The Commerce Department (news - web sites) reported Wednesday that the shortfall in the current account was 25.5 percent higher than the previous record, the $530.7 billion deficit set in 2003. The department also noted that the deficit was worsening as the year ended with the shortfall in the fourth quarter hitting a record $187.9 billion, up 13.3 percent from the third quarter deficit.


The Bush administration contends the soaring trade deficits reflect a U.S. economy that is growing faster than the rest of the world, pushing up imports and dampening demand for U.S. exports. But private economists are worried that the huge level of resources being transferred into the hands of foreigners will eventually result in lower U.S. living standards.

snip
http://news.yahoo.com/news?tmpl=story&ncid=749&e=1&u=/ap/20050316/ap_on_bi_go_ec_fi/economy

Bush putting "lipstick on this pig". We have a trade deficit of this size becuase we IMPORT more than we export. And with rising Oil Prices....we are cooked.

[htuttle]

9. Why would economic growth result in more imports?

I'm trying to wrap my head around that one. One would think that economic growth would result in more exports. And the contention that this 'growth' is dampening demand for US exports is beyond silly. Has he even noticed that the dollar has been falling through the floor, and fast? Has anyone even bothered to tell him about that? (No! They are afraid of getting fired!).

One would think that the falling dollar would help alleviate the trade imbalance. The fact that it has gotten worse while the dollar has been dropping is a good indicator of just how FUCKED we really are right now...

What a bullshitter he is. What a sad, pathetic bullshitter.

And how pathetic the United States looks listening to the man...

[cthrumatrix]

12. BS.....and pure lies....we are in deep deep trouble.

I don't see how "exports magically turn" and energy costs going down.

[Ripley]

17. I just noticed your crawl...

Did you read Philip K Dick's "Lies, Inc." I liked "Bladerunner", but I cannot read "Lies, Inc." He seems to be making up new words every third word and it is frustrating to read. Can't read more than 5 pages and get really irritated.

Sorry, waaaaaaaay off topic.

[htuttle]

19. No, I haven't read that one

And thanks to your review of it, I don't think I will (unless I'm stuck on a transcontinential bus trip and it's all I have to read..).

:hi:

[Ripley]

21. Harf.

Yeah, it's depressing. It would probably make a good movie...people are shipped "one way" to Whales Mouth, an Earth like planet as a means to solve overpopulation. Just wondered if anyone else had trouble with his writing style.

[FloridaPat]

23. This is simple. You have a lot of money to spend because the

economy is doing so well. You go out and buy a lot of stuff. Most of our stuff is made out of the country. So they have import a lot of stuff. We don't make anything much to export.

[UpInArms]

10. did you notice the "foreign owned assets" number

8:30am 03/16/05 FOREIGN-OWNED ASSETS IN U.S. RISE BY $460B IN Q4

the transfer of assets is rather alarming (imho)

[The Backlash Cometh]

11. But, but, WHY are we importing more than we're exporting? Who's

responsible for allowing this economic disaster waiting to happen?

[FloridaPat]

24. For the first time in history, we imported more food then we exported.

Here is Florida we grow mangos & avocados. I have seen the big orchards with my very own eyes. So I go to the store and where do the store bought mangos and avocados come from? Everywhere but the US.

[rooboy]

13. Fuck George, I don't know how much more success the USA can take.n/t

[RUMMYisFROSTED]

22. Yes, any more "growth" and we'll blast out of our exoskeletons!

[DELUSIONAL]

14. And this jerk is supposed to have a MA in business?????

both Yale and Harvard should lose accreditation -- he makes them look bad every time he opens his mouth. Now there are hot shot athletes who coast through college on their sports skills and not their brains -- but all this jerk has is his frickin last name and a rather common last name at that!

According to one of his Harvard Professors he can be mean and back stabbing -- and he knows he is getting by on his last name.

[reprobate]

28. I think he's the only graduate of any MBA school to have graduated......

....with a C average. AFAIK NO graduate school will let you matriculate with less than a B average. Of course, I could be wrong.

[Ripley]

15. DOWN IS UP, WAR IS PEACE.

Dead soldiers is Progress.
Trade deficits reflect Growth.

:argh:

[cthrumatrix]

26. freedom is taking some steps backward --- in our own country

[Nickster]

16. Quick everyone. Let's debate evolution. You know it ain't fact donchya?

When I can figure out economic policy better than our White House, it is a scary time indeed.

[dbt]

18. Wreck-O-Mended.

Somehow I keep hearing John Mitchell, former Attorney Genital and chairman of Nixxon's re-election committee (CREEP, I shit you not) in 1972:

"Let them listen to what we say, but watch what we do."

[Ripley]

20. Wreck-O-Mended...LOLlol.

"Disasters Is Us" should be the pretzledent's motto.

[nolabels]

25. Yep, it sure is growing isn't it

President Bush is depicted with a long nose on a carnival float during the traditional carnival parade in Duesseldorf, western Germany, on Monday, Feb. 23, 2004. The writing on Bush's nose reads: Iraq possess weapons of mass destruction (AP Photo/Frank Augstein)
http://www.infoshop.org/picoftheweek.html

[papau]

27. U.S. 4th-Qtr Current Account Deficit Grows to Record (Update3)

Yesterday we had $1.3410 per euro at 9:55 a.m. in New York, and a drop to 103.98 yen from 104.56.


http://quote.bloomberg.com/apps/news?pid=10000103&sid=azYXAlHZNG6w&refer=news_index

U.S. 4th-Qtr Current Account Deficit Grows to Record (Update3)
March 16 (Bloomberg) -- The U.S. current account deficit widened to a record $187.9 billion from October through December, as Americans bought more imports, a government report showed.

The deficit, the broadest measure of trade because it includes financial transfers, followed a $165.9 billion gap the previous quarter, the Commerce Department said today in Washington. For all 2004, the deficit reached a record $665.9 billion, equivalent to 5.7 percent of gross domestic product.

The U.S. imported a record $392.1 billion worth of goods last quarter. Americans are borrowing more from abroad to satisfy the growing demand for foreign-made goods. A report yesterday showed foreigners bought more U.S. assets in January, bolstering Federal Reserve Chairman Alan Greenspan's expectation that the deficit will probably correct with limited disruption for the economy.<snip>

Trade prospects so far this quarter aren't good. The trade deficit widened to $58.3 billion in January, the second largest ever, as imports of consumer goods, such as televisions, clothing and toys, jumped to a record, Commerce said last week. <snip>

The dollar will need to drop an additional 15 percent against a broad, trade-weighted index of the country's trading partners in order to help the trade gap narrow, Hatzius said.

In addition, higher interest rates to slow the pace of consumer spending on imports, smaller income gains as a result of larger interest payments to foreigners and a shift toward more exports that will require layoffs in other industries, are all likely to be part of the adjustment process, Hatzius said.

[Festivito]

29. Gee, deficit is no longer UNDER 5% GDP. No CON outrage?!!

5% was an arbitrary number used by CONs to confuse everyone.

Even a top-notch CPA ex-CEO used this on me. It's hard to call these people buffoons, but only because the truth hurts so badly.

They want to bankrupt this country.